Charles Schwab Review
#1 Best Overall for Investing
Best for: Long-term investors and active traders who want the thinkorswim platform, $0 commissions, premier research, and the safety of the largest US brokerage.
Charles Schwab at a Glance
| Minimum Deposit | $0 |
| Account Types | Cash, Margin, IRA (Roth/Traditional), Corporate, Trust |
| Platform & Software Fees | thinkorswim desktop free; web & mobile free |
| Level 2 Data Costs | Included in thinkorswim (Level 2 available) |
| Order Routing | Smart routing (PFOF on stocks; price-improvement focus) |
| Short Locate Availability | Yes — easy-to-borrow list, standard margin shorting |
| Supported Countries | USA (international via global accounts) |
Overview & Ideal Trader Profile
Following its acquisition of TD Ameritrade, Charles Schwab now pairs the industry’s premier investing infrastructure with the beloved thinkorswim trading platform. It’s the most complete all-rounder for US investors.
The ideal user is a long-term investor or active trader who wants deep research, world-class charting, $0 commissions, and the reassurance of the largest US brokerage. It’s less specialized for offshore no-PDT small-cap scalping, but for nearly everyone else it’s a top choice.
Commissions, Platform & Level 2 Data Fees
Stocks and ETFs trade at $0 commission, with standard per-contract options pricing. The full thinkorswim suite — desktop, web, and mobile — is free, and includes streaming Level 2 quotes and professional-grade charting at no extra cost.
There’s a $0 account minimum and no inactivity fees, making Schwab friendly to accounts of any size.
Order Execution, Routing & Latency
Schwab uses smart order routing with a strong price-improvement track record. thinkorswim supports advanced order types, custom hotkeys, and a fast, stable trading experience honed over years as TD Ameritrade’s flagship.
While it routes retail flow through wholesalers rather than pure DMA, execution quality and reliability are excellent for the investing and active-trading audience it serves.
Short Selling & Locate Availability
Short selling is available on Schwab’s easy-to-borrow list with standard margin shorting. It’s a mainstream brokerage, not a hard-to-borrow locate desk, so aggressive small-cap short sellers will find fewer low-float names available than at a dedicated day-trading broker.
For shorting liquid, large-cap names as part of a broader strategy, availability is dependable.
Third-Party Trust, Safety & Reputation
Charles Schwab is the largest US brokerage, FINRA-regulated with SIPC protection up to $500,000 plus supplemental coverage. StockBrokers.com ranks it the #1 overall broker (5.0/5).
Its reputation for safety, research depth, and platform quality is essentially best-in-class, which is why it anchors our Investing category.
The Honest Breakdown
Pros
- thinkorswim desktop charting & Level 2 included
- $0 commissions and $0 account minimum
- Premier stock and fund research tools
- #1 overall rating and top-tier safety
- Broad account types incl. IRAs and trusts
Cons
- PFOF routing rather than pure DMA
- Not tailored to offshore no-PDT small-cap scalping
- Fewer hard-to-borrow short names than specialists
- thinkorswim can overwhelm brand-new investors
Sub-Score Breakdown
#1 Best Overall for Investing
The Bottom Line
Charles Schwab is the most complete all-rounder for US investors, pairing #1-rated research and safety with the superb thinkorswim platform (Level 2 included) at $0 commissions. StockBrokers.com ranks it the #1 broker overall (5.0/5) for good reason. It routes retail flow via wholesalers rather than pure DMA, so it’s not built for offshore-style small-cap scalping.
Long-term investors and active traders who want top research, thinkorswim charting, and rock-solid safety.
Offshore no-PDT small-cap scalpers or short sellers needing deep hard-to-borrow inventory.
