Charles Schwab is now moving into digital assets with a new trading product aimed at everyday investors.
In a new press release, the firm announces Schwab Crypto, a spot crypto trading service that will roll out in phases over the coming weeks, offering direct access to Bitcoin (BTC) and Ethereum (ETH).
The service is designed to sit alongside stocks and other assets within Schwab’s existing ecosystem, including its mobile app and thinkorswim platform. Schwab says pricing will be set at 75 basis points (bps) per trade, positioning it among the lower-cost options in the market.
“Pricing among the lowest in the industry at 75 basis points on the dollar value of each trade.”
The company is also emphasizing education and support as part of the offering. The platform will include research, training materials and 24/7 customer support.
Over time, Schwab says it will expand its crypto offerings and add transfer capabilities for digital asset deposits and withdrawals.
Bloomberg senior ETF analyst Eric Balchunas says the launch of Schwab Crypto is big news, as it gives the brokerage’s clients direct access to BTC and ETH. But he notes that exchange-traded funds are a lot cheaper.
“Definitely a better deal than most crypto exchanges for newbies, but in my opinion, it’s a tough sell vs ETFs (which are 2bps to buy vs 75bps for Schwab direct). That said, ETFs have an expense ratio vs none buying direct.
Bottom line: if you buy BTC one time and one time only and plan to hold 5+ years, then direct is cheaper. Otherwise, ETFs for the win all day long.”
Disclaimer: Opinions expressed at CapitalAI Daily are not investment advice. Investors should do their own due diligence before making any decisions involving securities, cryptocurrencies, or digital assets. Your transfers and trades are at your own risk, and any losses you may incur are your responsibility. CapitalAI Daily does not recommend the buying or selling of any assets, nor is CapitalAI Daily an investment advisor. See our Editorial Standards and Terms of Use.