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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 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:
- 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.
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.
