Charles Schwab Corporation is an American Brokerage company which is based in San Francisco, California. Charles Schwab was founded by “Charles R. Schwab” in 1971 as a traditional mortar and brick brokerage firm. On May 1, 1975 Schwab started offering discount brokerage and luckily became one of the world’s largest discount brokers. Charles Schwab mainly operates in four main divisions such as:
- Wealth Management
Till now the company has served more than 7.9 million clients brokerage accounts and also manages $1.36 trillion investments in assets of their clients from all over the world. The company has its headquarters in San Francisco, California US and has covered almost 300 locations in US which makes it easier for new customers to meet their advisor directly and consult about your investment plans. You can also consult about the investment schemes through email or phone number provided on their website.
Getting Started with Charles Schwab
Opening an account in Schwab in very easy and convenient and it will take only about 10 minutes to complete the whole process. Once you have filled the required details, you can take full advantage of Schwab mobile app and can manage your account online anywhere from home or in office. You can open 2 type of account on Schwab.com which is described as follows:
You can open brokerage account either as Individual or as Joint. But there is not much difference in these two accounts as most of the benefits offered under brokerage account is same. The benefit of both the accounts which falls under brokerage account is described as:
|Individual/Joint Brokerage Account|
|Access Powerful Proprietary & Third Party Research|
|Trade stocks, bonds, ETFs, Mutual Funds and more|
|$0 account opening or maintenance fees. Other account fees, fund expenses, and brokerage commissions may apply.|
As you can see there is not major difference in both the accounts, but some conditions will be applied when you create account.
Schwab offers every of their clients to open retirement accounts under Traditional IRA, Roth IRA and Rollover IRA category. Any user who creates account under above categories will enjoy different benefits as per the account term and conditions are concerned. It is cleared with the following table:
|Traditional IRA||Roth IRA||Rollover IRA|
|Access Powerful Proprietary & Third Party Research||Trade stocks, bonds, ETFs, Mutual Funds and more||$0 account opening or maintenance fees. Other account fees, fund expenses, and brokerage commissions may apply.|
|You will get immediate tax benefits if you qualify. Potential gains accumulate tax-deferred—pay no taxes until funds are withdrawn in retirement.||Need to contribute post-tax dollars, but make qualified withdrawals tax-free.||If you determine its right for your situation, you can consolidate your old 401(k) or employer-sponsored retirement plans into a Schwab Rollover IRA to take control of your retirement savings.|
|Access retirement-planning tools and resources.||Access retirement-planning tools and resources.||Rollover Consultants will take care of the paperwork.|
|Get 24/7 service and support.||Get 24/7 service and support.||Get 24/7 service and support.|
|$0 account opening or maintenance fees. Other account fees, fund expenses, and brokerage commissions may apply.2||$0 account opening or maintenance fees. Other account fees, fund expenses, and brokerage commissions may apply.2||$0 account opening or maintenance fees. Other account fees, fund expenses, and brokerage commissions may apply.2|
|Withdrawals are there||No mandatory withdrawals (unlike a Traditional IRA).||A tax-smart way to keep your retirement money invested and avoids early withdrawal penalties.|
Once you have opened an account you can operate any of your account through Schwab Bank or though Schwab mobile app which gives you access of services like paying bills, transferring money, instant transfers and checking savings etc.
Charles Schwab Bank
Schwab Bank is the best way of dealing task relating to your account such as investment, brokerage, transfers etc. Charles Schwab Bank is the only bank which operates similar to all Ally Banks and ING Direct. However Schwab Bank has much higher rate as compared to standard brick and mortor banks. You can also write checks so as t pay your monthly bills. Some major features of Schwab Banks is as follows:
- ATM fees of other banks are automatically refunded, which means you can get cast virtually from anywhere at no cost.
- Real check book option is available where you can write real checks.
- Make deposits with the help of pre –paid envelopes or Schwab mobile app
Instant transfer option is also available, so you can transfer brokerage amount in no time.
Registered Investment Adviser Firms
Charles Schwab business model is basically based on independent investment adviser firms. Till now the company serves more than 5000 independent advisers. All the firms which are registered investment adviser are generally regulated by local/state government or by the federal government. In order to provide proper guidance relating investment services, Schwab offers regular online solution through various online tools.
Easy Trading with StreetSmart
Charles Schwab provides additional tools so as to make standard online trading easily with the help of StreetSmart.com and StreetSmart Edge. All those customers who are registered with Schwab can get access to these professional trading platforms which further helps to get live market data and increase the ability to enter into complex trading.
With the help of StreetSmart tool you can get customized view, live option, technical trader graphs, bid ask data and other trading options only at just one place. Not only have this StreetSmart application also alert with pop up message in case when alert conditions or trades conditions are met. These days many active traders make use of StreetSmart in order to keep an eye over the regular changes.
Standard Rates Charged By Schwab
|Stocks and ETF-S||$8.95|
|Schwab ETF-S||No Fee|
|One Source Mutual Funds (Schwab Partners)||No Fee|
|Other Mutual Funds||$49.95 and Up|
|Options||$8.95 Plus $0.75 Per Contract|
|Fixed Income Investments||Varies – Generally $10 Minimum|
Additional Note: Fee of $25 is charged for live broker assisted trades and all automated phone trades have an additional fee of $5.
Charles Schwab Mobile
In order to stay ahead of rising competition between stock traders, Schwab provides additional benefits to all their android, Ipad, Iphone and Blackberry users for free. You can easily view your account balances, transfer required funds, enter trades, deposit checks and contact customer service only with a single click though Schwab mobile app. Many of the registered customers are making use of this service which helps them in making their life easier as it allows them in doing quick research over their smartphones and entering e-trade in no time. Some major benefits include:
- View your account summary from anywhere in detail.
- Enjoy benefit of award winning editorials and get timely perspective from Schwab experts.
- Deposit checks in no time by taking picture with your Ipad, Iphone or any android device.
Access to Schwab Investment Reports
With the help of Schwab standard Brokerage account you can get access to virtually all bonds, stocks, ETF and mutual funds. You can get access to all the features once you have registered successfully at Schwab.comand can make trades easily. You will not be charged for viewing any investment reports, but the minimum balance which your Schwab account requires must be $1,000.
Competitors of Charles Schwab
Companies like Fidelity Investments, E*TRADE, IDealing, Firstrade Securities, Merrill Edge, Place Trade, TD Ameritrade, Scottrade and TradeKing are providing tough competition to Charles Schwab. But as per smooth dividend policies and investment schemes Schwab is able to get more success as compared with their competitors.