Our 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 eToro multi-asset brokerage platform. They offer instant ACH deposits from any US Bank to trade 70 Cryptos and crypto staking to earn interest on deposits.
- Fast and Cheap USD deposits from any US Bank account.
- Trade over 70 Cryptocurrencies with industry leading fees and spreads.
- FINRA-licensed and trusted by over 18 million users in America.
eToro USA LLC; Investments are subject to market risk, including the possible loss of principal.
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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)
Best Alternative to Charles Schwab for Crypto
The best alternative brokerage platform to Charles Schwab for digital assets is the eToro USA 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:
- Create an account: Sign up to the eToro US trading platform and verify your credentials.
- Deposit funds: Select the 'Deposit Funds' button on the bottom of your screen to deposit USD via any bank account.
- Find your Crypto: Once the USD hits your account, find the Crypto you want to buy on the eToro platform with their 'Discover' tab.
- Execute your trade: Input the USD amount you want to invest 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 assetswith 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.
However, as with all financial institutions, it is important to do your own research before investing any money.
eToro USA LLC; Investments are subject to market risk, including the possible loss of principal. This is not meant to be tax advice or financial advice of any kind. The above information we compiled from online tax forums. Please, consult a CPA or lawyer if you have questions about filing your tax return, forms to use, or what is/is not taxable. eToro is not a tax advisor.