Best for: Long-term investors, index fund buyers, retirement accounts, and anyone who wants a full-service brokerage with physical branches
Not ideal for: Active day traders who want the most advanced charting tools, or investors who primarily hold uninvested cash
The Quick Verdict
Charles Schwab is the best all-around brokerage for most investors in 2026. After acquiring TD Ameritrade in 2020, Schwab now has the thinkorswim trading platform, more than 300 physical branches, fractional shares, zero-commission trades, and index funds starting at 0.03% expense ratios. The main competitor at this level is Fidelity, and the choice between them is genuinely close.
Key Numbers at a Glance
| Feature | Details |
|---|---|
| Stock and ETF commissions | $0 |
| Options commissions | $0 + $0.65/contract |
| Schwab index fund expense ratios | 0.03% (SCHB, SCHX, etc.) |
| Fractional shares | Yes, $5 minimum via Schwab Stock Slices |
| Minimum to open | $0 |
| Physical branches | 300+ nationwide |
| Schwab Intelligent Portfolios (robo) | Free (no advisory fee) |
| Cash sweep rate (default) | 0.45% APY |
What Schwab Does Really Well
Index funds at near-zero cost
Schwab’s own index funds carry expense ratios of 0.03%, matching Fidelity’s ZERO funds in practical cost. On a $50,000 portfolio, the difference between 0.03% and 0.00% is $15/year. Essentially irrelevant.
thinkorswim platform
After the TD Ameritrade acquisition, Schwab inherited thinkorswim, one of the most powerful retail trading platforms ever built. Advanced charting, options chains, futures, paper trading for practice, and a mobile app that functions as a full platform.
Physical branches
More than 300 branches nationwide for in-person help. This matters for investors who prefer doing complex account tasks like trust or estate transfers in person.
Schwab Intelligent Portfolios
Schwab’s robo-advisor has no advisory fee at all. The catch: Schwab requires a 6-10% cash allocation that earns lower returns. For larger portfolios the free advisory is genuinely valuable.
What Schwab Does Not Do as Well
Default cash sweep rate is low
Uninvested cash earns only 0.45% APY by default. Fidelity’s SPAXX money market default earns 2.72%. If you hold significant cash, move it to Schwab’s money market funds manually or use a linked HYSA.
Schwab vs Fidelity
| Feature | Schwab | Fidelity |
|---|---|---|
| Index fund min expense ratio | 0.03% | 0.00% |
| Cash sweep rate (default) | 0.45% | 2.72% (SPAXX) |
| Physical branches | 300+ | 200+ |
| Fractional shares min | $5 | $1 |
Fidelity’s default cash sweep is meaningfully better. For investors who regularly hold uninvested cash, this matters. Everything else is effectively tied. If you already have a Schwab account, stay. If choosing fresh, Fidelity has a slight edge.
Who Should Open a Schwab Account
- Long-term index fund investors who want a reliable, full-service brokerage
- Investors who want in-person support at physical branches
- Active traders who want access to thinkorswim
- Anyone rolling over a 401k or setting up an IRA
