How to Buy Crypto with Charles Schwab

How to Buy Crypto with Charles Schwab

Sara White
Fact Checked
Feb 5, 2023

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.

Table of Contents

Best Charles Schwab Crypto Alternative

Platform Highlights

  • 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.
Uphold - Charles Schwab Alternative
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Audited Proof of Reserves
Audited Proof of Reserves

Can I buy Crypto on Charles Schwab?

Unfortunately for users of Charles Schwab in the United States, there is no way to directly buy or sell cryptocurrencies like Bitcoin or Ethereum through their app or with your personal or 401k account. This means that you cannot buy the underlying coins and hold them in a wallet like BTC, ETH or SOL (Solana).

That said, can get indirect exposure to cryptocurrencies through certain investment vehicles that are available on their platform. This includes popular crypto-backed ETFs such as:

  • Grayscale Bitcoin Trust (GBTC)
  • Grayscale Ethereum Trust (ETHE)
  • Grayscale Litecoin Trust (LTCN)
Buy Crypto ETFs on the Charles Schwab App.

Best Alternative to Charles Schwab for Crypto

The best alternative brokerage platform to Charles Schwab for digital assets is the Uphold exchange. Their platform accepts USD deposits via Bank Transfer, Bank Wire or Debit Card/Credit Card.

You can get started with their platform in 5 simple steps:

  1. Sign Up: Create an account on Uphold and complete your verification (personal or company).
  2. Connect Account: Select the currency you want deposit on the Uphold Platform (USD + 30 more).
  3. Deposit Funds: Connect any US bank account or Debit/Credit Card to quickly deposit your selected currency.
  4. Buy Crypto: The final step is to find the cryptocurrency you want to buy and execute your trade.
Best Charles Schwab Alternative for Crypto.

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.

Charles Schwab Crypto ETF fees
Trading Fees and Commissions schedule: Charles Schwab Pricing.

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.

Final Thoughts

Charles Schwab is a great platform for investing in traditional stocks, bonds, mutual funds and ETFs. However, due to U.S. regulations they are not able to offer direct trading of cryptocurrencies like Bitcoin or Ethereum on their platform yet. That said, investors can get indirect exposure to cryptocurrencies through certain crypto-backed ETFs such as GBTC that that are available on their platform.

In terms of fees, Charles Schwab does not charge any commissions for trading crypto ETFs, but there is still a spread fee (typically around 1.5%) associated with buying and selling these funds. Ultimately, Charles Schwab is a great option for those looking to access the cryptocurrency markets indirectly in a secure and regulated manner.

Sara White

I fell into crypto during the 2017 mania and have been around ever-since. I know write, research and publish my own reports on the digital asset ecosystem.

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