Summary: The Charles Schwab brokerage platform does not directly offer cryptocurrency investing products or services through its app. This is because they do not yet support native digital assets services like secure crypto wallets and other custodial requirements.
If you are looking to buy Crypto with a FINRA-licensed broker in the United States, we recommend the Uphold exchange. They offer instant ACH deposits from any US Bank to trade and stake over 200 cryptocurrencies with low fees.
Best Charles Schwab Crypto Alternative
- Fast and cheap USD deposits via ACH Transfer, Debit Card or Credit Card to trade 200+ Cryptos.
- Regulated in the USA by FinCEN and has audited Proof-of-Reserves for customer funds.
- Offers multiple asset classes including Crypto (and crypto staking), Stocks, ETFs, Metals and more.
Can I Buy Crypto on Charles Schwab?
Charles Schwab does not facilitate the direct purchase or sale of cryptocurrencies such as Bitcoin, Ethereum, or Solana within their app or personal and 401k accounts. This implies that clients cannot acquire and hold the underlying digital assets in a wallet.
Nonetheless, Charles Schwab users can still gain indirect exposure to cryptocurrencies through various investment vehicles accessible on their platform. Among these are well-known crypto-supported ETFs, including:
- Grayscale Bitcoin Trust (GBTC)
- Grayscale Ethereum Trust (ETHE)
- Grayscale Litecoin Trust (LTCN)
By investing in such funds, individuals can capitalize on the cryptocurrency market's potential without directly owning the coins themselves.
Best Alternative to Charles Schwab for Crypto
For those seeking a more suitable brokerage platform to access digital assets directly, Uphold exchange emerges as the top contender in the United States. Uphold's user-friendly interface allows for seamless USD deposits through various methods, including ACH transfers, bank wires, Apple Pay, Google Pay and debit or credit cards. This versatile platform supports over 250 cryptocurrencies, making it an ideal choice for investors looking to diversify their portfolios.
You can get started with their platform in 4 simple steps:
- Sign Up: Create an account on Uphold and complete your verification (personal or company).
- Connect Account: Select the currency you want deposit on the Uphold Platform (USD + 30 more).
- Deposit Funds: Connect any US bank account or Debit/Credit Card to quickly deposit your selected currency.
- Buy Crypto: The final step is to find the cryptocurrency you want to buy and execute your trade.
Charles Schwab Crypto Fees
If you need to buy Crypto on Charles Schwab with your 401k, there are definitely some benefits. The major advantage of buying digital assets with Charles Schwab is the fact that trading is completely commission free. This means that you will pay $0 in fees if you invest in one of the Grayscale Cryptocurrency Trusts.
However, there is a stealth fee that is charged in what is referred to as the 'Spread'. The spread is the price difference between the price to buy, and the price to sell an asset. This fee is usually around 1.5% on brokerages like Charles Schwab.
About Charles Schwab
Charles Schwab is one of the biggest financial services companies in the United States. It offers a wide range of products and services, from banking and investing to retirement planning. Charles Schwab is licensed and regulated by the US Securities and Exchange Commission (SEC). This means that it is subject to strict rules and regulations regarding its financial activities.
Charles Schwab offers a wide range of products and services, including:
- Retirement accounts: 401(k)s, IRAs, annuities.
- Investment products: stocks, bonds, mutual funds, ETFs, options trading.
- Banking services: checking accounts, savings accounts, credit cards, loans.
- Insurance: life insurance, health insurance, property and casualty insurance.
- Wealth management: financial planning, portfolio management, trust services.
Overall, Charles Schwab is a large and well-established financial institution. It is licensed and regulated by the US government, which means it is subject to strict rules and regulations. Overall, Charles Schwab is considered to be a reliable and trustworthy company.
Although Charles Schwab does not currently provide direct cryptocurrency investment services, it does offer exposure to digital assets through well-established crypto-backed ETFs. However, for those seeking a more comprehensive crypto investment experience, Uphold exchange stands as the best alternative for U.S. investors. Uphold's platform enables seamless transactions and supports over 250 cryptocurrencies, making it a go-to choice for investors interested in a diverse crypto portfolio.
I fell into crypto during the 2017 mania and have been around ever-since. I now write, research and publish my own reports on the digital asset ecosystem.