Charles Schwab Roth IRAs Review
ConsumersAdvocate.org Rating: 4.5 / 5 (Excellent)
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The Charles Schwab Corporation was founded in 1971 and is based in San Francisco, California. As one of the largest banks and brokerage firms in North America, Schwab's 17,000 employs handle over $3 trillion in assets across their banking, investment, wealth management, and trading divisions.
How is Charles Schwab rated?
Breakdown
4.0/5
IRA Types
5.0/5
Investment Options
5.0/5
Account Features
4.0/5
Fees and Discounts
5.0/5
Reputation and Customer Support
Overall Rating: 4.5 / 5 (Excellent)
Due to its solid financial standing and the breadth of its financial services, Charles Schwab is one of the best options available for investors of all shapes and sizes. Its Roth IRA product is part of a larger set of retirement plans that can be modified to each individual's needs. It works for conservative investors who want capital preservation (minimizing the potential of losing their initial investment), for more aggressive investors who are willing to assume the higher risk of speculation, and for anyone in between. Additionally, Schwab allows for either hands-on customer management of their investments or a more hands-off approach with assistance from financial advisors. Furthermore, having personal banking, investment, and trading all under the same roof is convenient for account holders who don't want their financial services spread out among different companies. Schwab's easy-to-navigate website and 24/7 service contact options also add value to the customer's experience. However, minimum contributions are required for the Roth IRA (as well as other products), commisions and fees are applicable to online trading, and obtaining the services of financial advisors will carry additional charges. Investors without the financial wherewithal or uninterested in the bells and whistles Schwab provides might look at other brokerages to fulfill their needs. Still, these costs are in line with industry standards, and the plethora of financial services provided by Schwab make it an attractive choice for willing investors.
Charles Schwab Account Minimums
IRA Types - 4 / 5
Opening a Roth IRA account with Charles Schwab requires an initial deposit of $1,000 via check or money order. This minimum deposit requirement is waived if the account holder sets up an automatic monthly transfer of $100 via direct deposit or Schwab MoneyLink. This option favors young professionals who want to start saving for retirement right away and have the additional income needed to open the account. The Schwab website does not indicate whether a minimum amount has to be maintained but, generally, account holders are not required to contribute any yearly amount to a Roth IRA.
| How much money do you need to start? | 1,000 |
| How much do you have to keep in your account? | 0 |
Charles Schwab Investment Options
Investment Options - 5 / 5
When it comes to investment diversity, Charles Schwab is second to none. The company distinguishes itself through its large offering of investment products, ranging from conservative capital preservation to high-risk speculation. Either self-managed or with the help of an advisor, every type of investor can find a specific strategy tailored for their retirement needs.
How can I invest my money?
| Mutual Funds | |
| Index Funds | |
| Stocks | |
| Bonds | |
| Money Market Accounts | |
| Certificates of Deposit | |
| ETFs | |
| Options |
Charles Schwab Fees and Commissions
How much do they charge?
There are no fees for account opening or maintenance. Other fees may apply, depending on the investment type, such as transaction, account activity, or administrative service fees. Commissions are $4.95 per online equity trade and $0 for Schwab ETF online trades in your Schwab account.
Account Features - 5 / 5
Holders of Roth IRAs with Schwab are not subject to account opening fees or maintenance fees. Other service fees may apply but will depend exclusively on the type of investment chosen. To understand the fees that could potentially be applied, visit the company's website. At $4.95 per online trade, commision costs are at the established industry standard.
Charles Schwab Financial Reputation
Fees and Discounts - 4 / 5
Charles Schwab has a solid financial reputation confirmed by its ratings from the major accrediting institutions. Even though their brokerage products are not FDIC insured, Charles Schwab is a member of the Securities Investor Protection Corporation (SIPC). The SIPC offers protection to investors in case a brokerage firm goes under, something that is not at all likely to happen with Charles Schwab.
| What's their Moody's rating? | A2 |
| What's their Standard & Poor's Rating? | A |
| How many "regulatory events" does FINRA list for them? | 52 |
| How many "civil events" does FINRA list for them? | 3 |
| How many arbitrations does FINRA list for them? | 220 |
Charles Schwab Online Experience
Reputation and Customer Support - 5 / 5
The Schwab website is a user-friendly space that provides everything a self-managing investor needs. By logging in with their user id and password, account holders can take a hands-on approach to their investment strategies. All procedures and options are clearly explained and defined throughout the website. Informative pages explain the how-tos of trading and present guides for investments managing.
What's their website like?
Schwab's website provides tools so that account holders can manage their investments completely online. It also has informational pages dedicated to retirement and financial planning, as well as explanations for core investment concepts. Their customer service information is readily available if the account holder needs additional assistance. Customer reviews are readily accessible so that users can compare their experiences with Schwab products.
Charles Schwab Methods of Contact
How do I communicate with them?
| App | |
| Phone | |
| Chat | |
| Branch |
Methods of Contact - 4.5 / 5
A big plus for account holders is the 24/7 customer service Schwab provides over the phone and via online chat, guaranteeing that customers can receive assistance at any time of day. For those who prefer a face-to-face meeting, Schwab operates over 300 branches across 46 states, Puerto Rico, and London.
Charles Schwab Advisors
Advisors - 4 / 5
As one of the largest brokerage firms in the United States, Charles Schwab has many dedicated financial advisors ready to assist customers with their investment needs. Whether it's just simple assistance to establish a retirement plan or a completely hands-on approach to wealth creation and management, Schwab offers both and anything in between. Their advisor options have different costs depending on the level of involvement and might require minimum balances. In this sense, obtaining financial counseling will depend on the account holder's needs and budget.
| What kind of advisors do they have? | Human Advisors |
| What should I know about their advisors? | Schwab offers no-charge initial consultations so that customers can decide if financial advisors are necessary to carry out their retirement saving plans. They have different levels of advisor involvement at different price points. |
Charles Schwab Promotions
Promotions - 3 / 5
Schwab currently offers 500 commission-free online trades for customers who enroll with a qualifying net deposit of $100,000 in either brokerage, retirement, or checking accounts. It's a substantial deposit amount, beyond what most customers will be able to contribute. But if the cash is available, it's a useful promotion for investors who complete many online trades. These types of promotions are subject to change and should be verified either through Schwab's website or calling its customer service line.
What special promotions could save me money?
500 commission-free online trades with a qualifying net deposit of $100,000.
Company Profile
| Full Name | Charles Schwab Roth IRAs |
| Company Website | |
| Headquarters | 211 Main Street, San Francisco, CA, 94105 |
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Top Rated
- Offers Roth IRA certificates of deposit (CDs)
- Interest rates are higher than many competitors'
Discover offers a dedicated Roth IRA CD, which can be purchased with maturity dates ranging from 3 months to 10 years. Although Discover does not offer other Roth IRA options, it can be a good choice for people who want CDs to be part of their Roth IRA portfolio.
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