Charles Schwab
The best all-around broker for long-term investors. Exceptional customer service, vast branch network, and rock-solid retirement tools.
Score Breakdown
Six dimensions assessed across a 15-year investment horizon.
Protection & Custody
Investor Protection
SIPC + excess coverage
$500,000 (SIPC) + $149.5M excess
Excess coverage through Lloyd's and other insurers
Track Record
55+
Years in operation since 1971
Total Cost of Ownership
“Very low cost with excellent value”
Commission
$0 (stocks/ETFs/options)
Spread
Included in market maker routing
Inactivity Fee
$0
Withdrawal Fee
$0 (ACH) / $25 (domestic wire)
FX Conversion
N/A (USD accounts only)
Est. Monthly Cost
~$0/month for buy-and-hold investors
Order Flow & Execution
Receives PFOF for options; minimal for equities
Schwab receives PFOF for options orders. Equity orders routed to market makers for price improvement. Best execution obligation applies.
Pros & Cons
Pros
- $0 commissions on stocks, ETFs, and options
- Outstanding customer service with 400+ branches
- Excellent retirement and goal-planning tools
- Schwab Intelligent Portfolios (free robo-advisor)
Cons
- Lower interest on uninvested cash vs competitors
- Active trader platform (StreetSmart Edge) being phased out
- Fractional shares only for S&P 500 companies
The best all-around broker for long-term investors. Exceptional customer service, vast branch network, and rock-solid retirement tools.