Charles Schwab Review

Charles Schwab Overview

Charles Schwab made its name as the innovator in the brokerage industry. They turned the big Wall Street brokers on their head when they positioned themselves as a "discount" broker, one that promised lower fees than working directly with a traditional stockbroker. Today, in a role reversal, Schwab is one of the big houses and is doing battle on its flank against the mostly smaller online brokers.

Still true to its roots, as an online broker they tend to service the investor-oriented trader, offering a full selection of investment products like mutual funds, bonds, banking services, mortgages, etc. They also have an extensive network of branch offices to service those individuals who prefer interacting with their broker on a personal basis.

Schwab earns the highest ratings in most categories including research and customer service. However, they do not offer trading in foreign markets. Their trading tools earned middle of the pack ratings, so they may not be the best choice for advanced, daily traders who require the most sophisticated platform. For most everyone else, Schwab is a solid choice.

Until recently, Schwab has been at the very high end of online brokers in terms of their commissions and fees. However, earlier this year, Schwab dropped their per trade fee by a significant amount to $8.95 per trade. While this is not nearly the lowest you can find, it is now competitive with others at the high-end of the online broker category.

There are no current Promotions for signing up for a new Schwab account

Charles Schwab Services

- Mutual Funds and Bonds - Extensive selection
- Banking Services - Checking and Savings accounts earning Four Stars in
SmartMoney 2009 Broker Survey
- Foreign Market Trading - No
- Quality of Research Tools - Co-rated Best by SmartMoney - The Wall Street
Journal Magazine
- Quality of Trading Tools/Trading Platform - Three Stars in SmartMoney 2009 Broker Survey
- Mobile Phone Trading - Yes, but limited
- Local branch offices - Yes

Charles Schwab Commissions & Fees

- Cost Per Trade: $8.95 flat-rate
- Additional Trading Fees: None
- Account Minimum Balance: $1,000
- Broker Assisted Trades: $33.95
- Account Maintenance Fees: None
- Cancellation Fees: $50.00

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