You really can't go wrong with any of these three brokers. I worked for an investment firm and we used with both Fidelity and Schwab. Schwab has the best customer service of all three, which is a big factor for me. During times of market volatility like last week, I really can't emphasize the importance of customer service and trading operations. I've used them personally for 5 years now and their 24/7 chat feature is great. Schwab and Fidelity both have commission free equity trading and standard option contracts are $.65.
Here is a breakdown from their website comparing Schwab to Fidelity/Vanguard:
I use Schwab, and I'm happy with them:
My only gripe is the lack of a HYSA that can compete with other banks. Their "high-yield" checking account is 0.01% APY. So my emergency funds are stashed elsewhere at 1% APY.
I like Personal Capital to get a unified view of my assets, including Schwab, credit cards, and auto loan; it automatically syncs via Plaid, so there's no need to manually update anything. Personal Capital has some portfolio analysis, but it's a bit limited compared to, say, Morningstar's X-Ray tool (which unfortunately doesn't sync with anything).
If I were to start from scratch today, I might choose M1 Finance, simply because of their complete support for fractional shares. They support automatic investment into ETFs, and their pie system makes rebalancing a one-click thing.
Schwab has a complete list of their ETFs on their website.
A word of caution though: don't believe everything their analysts say. Schwab analysts have Nvidia rated as a C ("market perform") when it's 4x the return of the S&P 500.
So, I'm looking for a good OTC broker. Ideally one that has unrestricted trading of dark stocks. Any ideas?
edit: here's the link to the new fee structure for more details:
https://www.schwab.com/legal/schwab-pricing-guide-for-individual-investors
ETHE is what you want, I think.
"Grayscale Ethereum Trust: The investment seeks to track the ETH market price, less fees and expenses.The fund enables investors to gain exposure to the price movement of ETH through a traditional investment vehicle, without the challenges of buying, storing, and safekeeping Ethereum."
https://www.schwab.com/resource-center/insights/content/bitcoin-does-it-have-place-your-portfolio; see "Can I get exposure to cryptocurrencies at Schwab?"
https://www.schwab.com/resource-center/insights/section/on-investing
Click on "Go Paperless" on the right column and it'll redirect you the right page where you can turn on Paperless settings for everything.
So the Schwab debit card agreement says the following:
> If you use your Card to withdraw foreign currency from an ATM, or to pay for a purchase with foreign currency, we charge your account for the U.S. dollar equivalent of the transaction. Depending on the specific arrangements that are in place, the exchange rate and calculation of the U.S. dollar equivalent will be done by the bank at which you conduct the transaction, the network to which the ATM belongs, or Visa®. The bank or network may also charge a fee. The currency conversion rate used on the processing date may differ from the rate in effect on the purchase date or statement posting date. If the exchange is done by Visa®, the exchange rate between the transaction currency and the billing currency used for processing international transactions is as follows: a rate selected by Visa® from the range of rates available in wholesale currency markets for the applicable central processing date, which rate may vary from the rate Visa® itself receives, or the government-mandated rate in effect for the applicable central processing date, in each instance, plus or minus any adjustment determined by us.
https://www.schwab.com/resource/visa-debit-card-agreement
So I guess in the end, the simple answer is "it depends".
It sounds like you just need to read the site…
Your shares haven't settled, then. You need to learn about settlement before you try using Schwab for anything. Schwab isn't Robinhood.
Also, day trading is not allowed on Schwab unless you maintain a $25k balance in your account. See here.
https://www.schwab.com/checking/faqs#accordion-title--acc1-component--acdefault91171
You can receive a new contactless card in one of two ways:
By clicking here, you will be sent to the Debit Card Reorder page on Schwab.com. Choose the "upgrade to contactless" button, verify your address and then click "Request card". Your card will be mailed to the address that you choose, and you should receive it in 3-5 business days.
You will receive an upgraded contactless card upon expiration of your current card. There is nothing you will need to do. Your new card will be shipped to you a month or so before the expiration of your current card.
It will need to be an international wire transfer. Also looks like Schwab doesn't support rupees so the friend from India will need to send it in dollars. Instructions here https://www.schwab.com/resource/instructions-to-transfer-money-to-your-schwab-account
"I traded a non-marginable security in my margin account...If you buy a security that's not marginable then settled funds are required for full payment. Consequently, a settlement violation can occur in a margin account if you buy and then sell a non-marginable security before settled funds have covered the purchase. The order verification screen will alert you if a stock is not marginable. If you're not confident that you can commit to holding a non-marginable security for at least three trading days, consider limiting your purchase to settled funds only." Schwab Good Faith Violations
To avoid this sort of thing, I recommend you read about how trading works. In particular, you have to understand stock settlement. Always read the messages that show up on the trade confirmation page carefully.
Chatted again today...now they said they don't have a release date yet...they are still working on it.
The FAQ page is now saying "You're not authorized to access this page." https://www.schwab.com/resource/checking/Zelle-FAQs
For those asking for a link, please visit the Schwab website and download the pdf file.
Check the fund information page before you do some kind of automatic purchase.
Most funds are no fee, including many non Schwab. No Load, No Fee
Especially if doing Target date, there's no reason to go outside of Schwab really. They're all very similar setups with competitive expense ratios
I think the same guy does the Schwab Market Update after close each day. I love listening to it in the background. My home automation system automatically plays it for me after I return home, if the market was open. :)
Maybe you're looking for something like this? Doesn't specifically address target date funds, but in general those funds will start with an aggressive stock/bond mix and then switch to higher bond allocation as you near retirement.
Yes you can. Follow these steps:
THIS PAGE has a video that shows you the steps with some visuals of the selection and review pages.
Schwab offers 2FA, you can use alerts/notifications which can help you keep up to date with trade and balance changes, and they use something they call 'Voice ID' to identify you on the phone.
In theory, you're using Schwab for brokerage and possible custodial and retirement accounts, you'd like your money safe. I'd suggest to use all the features available.
Schwab will support Zelle soon. From u/liracobopu.
>Schwab Checking is the best overall checking account in the entire banking industry. I love having my paycheck post to my account the evening before payday. The 3 free domestic wires/qtr is a nice touch too! (if you have at least $100K in assets)
>
>My only complaint is they don't support Zelle.
>
>Funny enough, someone posted about this about 2 hours ago and pointed to a recent PDF that talks about using Zelle within the app. This must mean that Zelle will be fully integrated with Schwab soon! https://www.schwab.com/resource/checking/Zelle-FAQs
No, Schwab doesn't charge fees for ETFs or individual stocks. Schwab also doesn't charge fees fees for a select list of mutual funds (Source: https://www.schwab.com/pricing)
You will know if you are paying a fee before you place an order.
Since it looks like you are still learning about investing, I'd recommend just investing in a single Schwab mutual fund called SWTSX (Total Stock Market). This is an index fund that mimics the total US stock market. Since it's a mutual fund, you'll be able to buy fractional shares of it.
This is why:
Active Semi-Transparent ETFs
When clients invest in an active semi-transparent ETF in a Schwab account, Schwab receives compensation from active semi-transparent ETFs or their sponsors for platform support and technology, shareholder communications, reporting, and similar administrative services for active semi-transparent ETFs available at Schwab. Schwab only offers active semi-transparent ETFs if Schwab receives compensation from the ETF or its sponsor. The fee will vary, but typically is an asset-based fee of 0.10% per annum of the assets held at Schwab. To the extent that any part of the fees described are paid by ETF sponsors out of fund assets, those amounts are included in the ETF's operating expense ratio ("OER"), which means they are indirectly borne by the fund's shareholders.
Source: https://www.schwab.com/transparency/limitations-conflicts
There’s a chat feature, but you’re setting off bright red flags for fraud by not being willing to call. They have support in multiple languages if that’s the issue.
It's hard to tell without seeing the rest of your account (which you should not post). I would say reread the definitions directly from Schwab, but I will attempt to extrapolate
https://www.schwab.com/margin/requirements
First, you can't actually buy or sell options with margin. You do get leverage, but it's not the same thing. And the specifics depend on the broker and what level of options you are granted. Options positions are generally held in a margin portion of the account for transaction purposes without generating interest fees Etc
I would guess the $190,000 is very close to your actual cash balance (or marginable securities) . Your stock buying power should be roughly twice (around 400k) because you could buy that much equity on margin
So where does the option leverage come in? It's all about the buying power reduction. Let's say you want to sell a 100 strike put for AAPL. In a cash account, the buying power reduction is the entire $10,000 of Maximum loss. In a margin account, the buying power reduction might be $1,000. So you can sell 10 contracts instead of just one
The amount of leverage will depend on the specific underlying and the Brokers risk management requirement. AAPL is unlikely to go to 0 so the buying power reduction reflects that. In a newer or risky underlying, you might get virtually no leverage
Canadian foreign ordinaries have no fees. Here's a link to the fee schedule: https://www.schwab.com/stocks/understand-stocks/adrs-foreign-ordinaries-canadian-stocks
If you have a margin account, you need to have 25k to day trade as much as you want. If you have a margin account with less than 25k, you are allowed to do 3 day trades in a rolling 5 day period. If you execute 4 day trades in that 5 day period, you will be coded PDT and need to get the account above 25k. If you have a cash account, you can day trade as much as you want, but need to be mindful of cash settlement rules. Go on the schwab home page and search “Settlement” and read the article titled “stock settlement why you need to understand the T+2 timeline” also linked below. If you don’t follow the settlement rules you will get a trading violation which will limit your trading abilities
I found on this page that details that "Foreign ordinaries traded in the over-the-counter (OTC) market" have a $50 foreign transaction fee when placed online, and that the "commission and foreign transaction fee will be combined and will appear as one line item, labeled "Commission," on the trade confirmation". Now, I personally have never been charges a commission the few times I've traded foreign ordinaries that were traded OTC, but they were Canadian foreign ordinaries, which according to the aforementioned page have 0$ commission. Normally, though, during the trade it would have told you the commissions and fees associated with the trade. Also, in the future, you might want to check for multiple tickers. For instance BYDDY is the same company but it trades as an ADR and not foreign ordinary. Might be different fees.
You could also opt for a target date retirement fund what is just one fund
They are listed here based on your retirement date; its a 3 fund portfolio that auto-re balances to bonds as you approach retirement
https://www.schwab.com/mutual-funds/mutual-fund-portfolio/target-funds
Haven't used vanguard but schwabs customer service is sharp (can talk to someone on the phone pretty quick). Fund minimums are lower. Be sure to get a referral to take advantage of below
If you want a unified dashboard, Personal Capital is great. It connects to Schwab, as well to a host of other banks (checking, loans, etc.), 401(k) providers, credit cards, etc. to give you a complete overview of all your assets. It's free, too.
I've heard a lot of good things about The Simple Path to Wealth.
I wouldn't recommend the other two, though. The Intelligent Investor is out of date, very dry, and is mostly about stock trading and value investing; it largely predates low-cost index funds. I don't remember if it touches on IRAs and other tax sheltered accounts; I don't think it does.
As for The Little Book, the philosophy is good, but Bogle is honestly not a very skilled writer. It's apparent that he is used to writing for an audience of finance people, and it shows in how he approaches his subject. It quickly gets into the weeds with statistics and technical terms, without giving the reader a clear introduction into each concept. It's probably a good book for finance people who already assume stock trading is super to passive investing.
My favourite intro book, which I think is the only book anyone needs to read, is The Bogleheads' Guide to Investing. It's up to date, an easy read, and doesn't go into a lot of unnecessary detail. It's a type of book that you can read and then, at the end, understand exactly what to do.
Read The Bogleheads' Guide to Investing. It goes into absolutely everything you need to know: ETFs, mutual funds, equity vs. bonds, tax efficiency, etc.
Because doing Zelle has a low limit than doing on the bank, however Schwab is getting Zelle support soon.
The thing about trading with your/my own money is that there is the settlement aspect to consider.
At the end of Day 1, after selling all my stocks, I will not have funds to trade as it's not cleared yet as per the T+2 days settlement rule.
Without being flagged as a PDT account (and by being on a cash only / no margin account), it looks like one cannot continue to Day 2 without having the sale transaction settled.
Because stocks are approved on their list of what’s eligible collateral. Again, this pal account specifically technically while you can decide what to invest in (with limitations see below), the assets are not yours in the sense that it’s held as collateral in an account that belongs to Schwab Bank.
On the website:
>> Schwab Bank determines eligible collateral for your flexible line of credit, which generally includes:
>> Marginable equity securities valued at or above $3/share at the time of funding and closing
>> Most mutual funds and exchange-traded funds
>> Certificates of deposit and cash
>> Many corporate, Treasury, municipal, and government agency bonds
https://www.schwab.com/resource/pledged-asset-line-from-charles-schwab-bank
You can always have a separate account to do options, or margin, but not for the PAL which again belongs to Schwab bank and the assets within belong to you, held as collateral for the line.
Here's the scoop on Schwab's HSBA https://www.schwab.com/hsba
The advantage of a HSA is a health savings account (HSA) can help you lower your taxes, pay for health care more easily and even save for retirement. HSAs are only available with high-deductible health plans. You can use HSA funds to pay for eligible health care expenses and for out-of-pocket costs your health plan doesn't cover.
It works that same as other brokerage accounts
You may not get a lot of responses as that's the 2020 Target Date Fund - meaning it's for folks who retired last year.
Target date funds are meant to be "all inclusive". Meaning if you have sizable investments elsewhere - you are defeating the purpose of the Target Date Fund allocation.
When you say you wish you could have "done better" - you'll need to specify what you mean. Do you mean total market return? Do you mean dividend generation? Capital preservation in the event of a market downturn?
Looking through your prior posts - I see you are retired. What I would recommend is that you leverage the resources at Schwab to help guide whether the 2020 Target Date fund is right for you - when taking all other income sources (i.e. SS, other investments).
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https://www.schwab.com/checking
If you want a savings account you can find it online as well, it's a paper application you download and mail. The checking account is going to open a brokerage account with it.
If you go to your profile (on a computer), then click account settings, margin should be the third line down. Usually you can check the margin status of that account or apply for margin there.
Please do review the Schwab guide to margin before doing any margin trading.
It will tell you what to watch out for so you don’t get margin called like the other poster
>Atom Finance
Might be worth checking out this Schwab page why its a bad idea to share your id and password like this.
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I have a global account and the Konami Corp ordinary is listed with the symbol: 9766:XTKS. If you copy paste that into the Schwab research box for symbol you will get the research page for it, along with other quotes for the company (KNAMF which trades OTC in USD).
You can find the application form and the related fees here. No minimum balance, trade minimum, etc. They take fees on certain online trades and on the currency conversion. It's all through a totally different system, which imo is very old fashion. No streaming quotes. You have to find the local market ticker for the company and then go back to 'normal' Schwab and do your research there. But it's easy to use and doing research on the company is easy within Schwab and outside.
I applied and after a week got a confirmation that is was ready. All statement and confirms are through the "Schwab Global" interface, which you access by clicking on that account in your account summaries.
As my referral, you can get up to $500 when you become a Schwab client and make a qualifying net deposit. Get started with my personal referral link. https://www.schwab.com/public/schwab/nn/refer-prospect.html?refrid=REFERB8CPTF7W
I believe the time it was supposed to be 90 days, but as soon as I got the email notifying me (I don't believe I got one in the message center) I called and explained/learned what happened and it was made a good faith violate after I transferred a certain amount into the account. As soon as the transfer went through, I called them back and it was cleared.
Edit: this was my first (and only) violation so it was made a good faith violation. https://www.schwab.com/resource-center/insights/content/stock-settlement-why-you-need-to-understand-t2-timeline
Are you saying that you have money in your Charles Schwab bank account, and you want to transfer [direct deposit is the confusing term here] money from the CS bank account to your other bank account?
You want an online transfer for ACH. Send a wire also can send money to your secondary account but I believe it costs $$ while ACH is free (but takes a day or two to complete).
You need to verify the account you are sending money too first though. Go to "Accounts" tab and then in the drop down click on "external accounts" and then the next page click "link external account".
It can be either , you can apply for a margin account but you need at least 2k per SPIC regulations.
With a cash account its true you will not get PTD violations but you may get other violations by trying to trade with unsettled funds like good faith violation or free riding violations still occur in cash accounts
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Oh yeah sorry didn’t elaborate, it seems to claim here that quotes are real time, though it’s probably not as real time as StreetSmart
Here. It's 0.03%. Schwab does not offer any "high yield" banking at all. Even their CDs max out at something like 0.25%, which is silly.
Currently money market funds are not great, either. The 7-day yield for SWVXX is just 0.74%.
Schwab Checking is the best overall checking account in the entire banking industry. I love having my paycheck post to my account the evening before payday.
>My only complaint is they don't support Zelle.
Funny enough, someone posted about this about 2 hours ago and pointed to a recent PDF that talks about using Zelle within the app. This must mean that Zelle will be fully integrated with Schwab soon! https://www.schwab.com/resource/checking/Zelle-FAQs
With regards to the tax implications, see Schwab’s page on different types of equity awards: https://www.schwab.com/public/eac/resources/articles/your_stock_awards.html
As for the downsides, it really depends more on how you feel about holding a certain amount of stock in a company that you’re no longer working for. Sometimes, it can still be advantageous to do so, but that depends more on your own financial goals, which I know nothing about.
In short, yes, you can just initiate the transfer of shares from the EAC site. There will be tax implications, depending on the type of equity award, how long you’ve held them, and how long it’s been since you were employed at your old company. Your old company might have some documents explaining your options around that.
That is what I read on their website:
"When are deposited funds available for trading?
Schwab Brokerage Accounts—Generally, electronic deposits and incoming wires to your Schwab brokerage account are available for same day trading. In some instances, however, incoming deposits may not be immediately used for certain securities and are subject to a holding period of up to five business days."
But in reality the funds are available only on the next business day, which is very inconvenient. So I decided to ask, does everyone have the same situation? Or, after all, someone has funds available on the same day, as described in their FAQ?
I also thought that this functionality would become available after a few deposits or over time, but this is not happening.
The old card is the white one with the tagline Own your tomorrow. The Schwab One Checking Feature can be find here:
https://www.schwab.com/public/schwab/investing/accounts_products/investment/cash_solutions
Is this in effect now? The documents in https://www.schwab.com/legal/schwab-pricing-guide-for-individual-investors don't say anything about Dec. 6.
Also, it is confirmed that it will affect foreign OTC ADR stocks as well, like NTDOY?
So here's what he needs to do.
A person's lifetime financial cash flow plan and the budget he has to stick for everyday living have to get created together. That he can do at Schwab online for free.
The question of what specifically exactly to invest and where (Schwab in USA, Mexican bank) is a whole 'nother ball of wax after you have a plan. Schwab online resources or people can help your friend select an age-appropriate set of investments.
Let's set expectations - $200k is not a lot of money to Schwab, and your friend will have to do a lot of the work himself using low-cost self-serve options. Schwab people will be very nice in person and on the phone, to be sure, but he's not going to get the "white glove" service that someone with $5 million gets.
Whatever you do, keep him away from the investment "advisors" who sit in banks, or annuity or life insurance salesmen. I'm assuming maybe he's Hispanic, just so you there's a whole sub-class of the financial industry who prey on poorly-informed people of color, who have been putting Black people in low-return (or no-return) life insurance retirement choices for generations, for example.
SECURITY NOTE - once he makes an account and has a relationship with Schwab, you are not legally entitled to discuss any of his private matters with Schwab, in fact they will hang up on you, unless he grants you a Power of Attorney using their forms (I have a POA for my Mom). And he should not, unless you are a skilled, capable, well-intentioned blood relative which it sounds like you are not. The well-intentioned part I don't doubt.
Strange, I was sent an email when I did two buy-sell transaction across two days.
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>Our records show that the trade(s) placed on <DATE>, was not settled in accordance with securities industry regulations. While we are not placing any trading restrictions on your account at this time, future settlement issues may require us to limit trading to settled funds1 only.
To help you avoid any potential settlement problems in the future, we'd like to provide you with more information about these regulations.
>
>
Trading without sufficient funds.
When you place orders for an account without sufficient settled funds or securities on deposit, industry regulations require us to monitor the account to make sure it complies with the following conditions:
1. You promptly make a full cash payment with settled funds or deliver previously owned securities into the account within the payment period,
2. You do not sell the securities purchased until full payment with settled funds has been made, and
3. You do not make payment with the proceeds from the sale of other securities made after the trade date.
>
>
If these conditions are not met, we are required to withdraw your ability to trade without sufficient funds on deposit for 90 calendar days.
For additional information about trading without sufficient funds, please see https://www.schwab.com/resource-center/insights/content/stock-settlement-why-you-need-to-understand-t2-timeline.
I know this isn’t going to help but like the other person said above, you should be fine.
https://www.schwab.com/schwabsafe/security-guarantee
Also, there are couple things that I recommend you to do:
File a police report - Previously I have filed my case online and was able to save my ID theft report with the case # as a pdf file.
Report identity theft to www.identitytheft.gov
You can't trade with margin with an IRA account. That is the law. From Schwab's on website:
https://www.schwab.com/resource-center/insights/content/what-every-trader-should-know-about-margin
Please note that some types of brokerage accounts are not eligible for margin (e.g., and without exclusion, IRAs, 401(k)s, 403(b)s, UGMAs and UTMAs)."
This looks like Scwab screwed up since they allowed a buy with margin.
Let me say it again over and over, The Charles Schwab Bank that is FDIC insured and it is separate from brokerage account. They have HYSA and Investor Checking Account. Look at the logo on the link here:
The initial variable Annual Percentage Rate on the Pledged Asset Line, based on the loan value of the collateral pledged at origination, is the sum of SOFR plus the applicable Interest Rate Spread shown above. Pledged Asset Line amounts begin at $100,000 with a required initial minimum advance of $70,000.
You really should read this. https://www.schwab.com/resource-center/insights/content/stock-settlement-why-you-need-to-understand-t2-timeline
Edit: And, if you are new to margin trading, understand you are borrowing when you trade on margin. There are interest charges and equity requirements.
Point of clarification: The instructions are for wire to/from you Schwab Brokerage account, the Schwab Bank account does not allow direct transfer to/from banks outside the US (Most likely to avoid bank compliance requirements). You will need to transfer the money into Schwab Bank from brokerage. https://www.schwab.com/public/file/P-1708281/APP24588-11-CON.pdf
So there is a bit of misunderstanding on what a cash account is and why would they let you buy stock without money.
I suggest everyone read this
Think of a cash account like a checkbook, where when you write checks(place buy orders) it will take 2 days to clear and when you deposit checks(sell orders) it will take 2 days as well.
However transfers/deposit can potentially clear in a day.
So why would they let you place an order without the money, because you don't need to put up the money for 2 days. Maybe you have a transfer coming in already that will clear tomorrow. Maybe you will put a transfer in right after the order and it will clear tomorrow.
It's just like writing checks, let's say I have no money in my checking account but I know later today at 5 pm my direct deposit will get deposited. It's 1 pm I can go to the store and write a check for my groceries (pretend you are in a small town that still accepts checks)
I will be ok, by the time the check I wrote clears in 2 days I will have money in my account! However if I do stuff like this it's up to me to manage and make sure I don't bounce a check. However I can write checks from an account that I have no money in.
Sorry to say this but you have admitted your not the best with technology, I am guessing schwab did give you a warning that you have multiple orders and will need to deposit more money. If you just blew through the warning and continued and didn't check open orders or try to cancel anything it's pretty much on you.
It's like the check writing examples, you wrote checks, got a warning you will go negative then continued and didn't deposit the money by the time the check cleared.
Trading stock is adult stuff and not a game, make sure you understand it before doing it
From the current official documentation no. But keep us posted as I'm curious! How long from the first outgoing wire transfer has it been?
SSE also has a tool called brackets. That does market orders when certain conditions are met at your preference.
https://www.schwab.com/video/bracket-orders-in-streetsmart-edge
When buying and selling actual stock, funds do not settle for T+2 days. T is the day the trade was made plus 2 business days. Since you sold your stock today, the funds won't settle for 2 more business days, so your funds should settle by Friday.
Here is Schwab's help on that: https://www.schwab.com/resource-center/insights/content/stock-settlement-why-you-need-to-understand-t2-timeline
I started doing day trading and I got a slap on the wrist for selling stock and then using the funds to buy something else. Since it was my first warning on my brokerage account I didn't get the "good faith violation" that occurs when trying to use funds from a sold stock that have not settled yet. The link I posted above talks about all of this.
Yes, it's a thing. Yes, you need to let your funds settle before you try to use them to buy other assets.
edit: word.
I went go to check even though its 1AM, and I definitely don't have the link to add an external account. This guy has the same issue:
https://www.reddit.com/r/Schwab/comments/koqlgc/ive_been_told_by_this_sub_that_there_is_a_way_to/
I have clicked every settings gear on both the app and website, checked all account settings, watched this video which shows the link, which I am missing, and can't figure it out.
Schwab has an article about this topic.
https://www.schwab.com/resource-center/insights/content/etfs-how-much-do-they-really-cost
Read this to help you understand what margin means. There are many aspects to having an account enabled for margin that having nothing to do with actually borrowing on margin and owing interest. For instance, with a margin account you can trade using funds from a prior trade without having to wait for them to settle. In a cash account you need to wait two days after you sell stock before you can buy more stock with the funds.
If you are absolutely sure you do not want a margin account, then call Schwab and ask them to disable the margin feature on your account.
Per Schwab, the companies that are part of the Stock Slices program are in the S&P500. No other companies are part of it for now, unfortunately.
There's no minimum that I know. To apply, you have to fill out the form (go here) and submit it through the Schwab secure messaging center. The fact that you have to do this as a PDF form is the first hint you get that Schwab Global is a bit of a relic.
The Schwab Global site is a completely different web site and product. There's almost no integration with your main Schwab accounts; you can transfer between accounts and you see the Global account listed among your brokerage accounts, and that's it. No portfolio performance etc. There's no mobile app that I'm aware.
It's very cumbersome to use. It looks like it was made in 1997, and has not been updated since. Extremely minimal insight into things like gain/loss, and the positions and balances tables are weirdly hard to understand if you're used to the main Schwab site. The UI is very slow and cumbersome. For example, to buy a foreign stock you first have to exchange USD into the local currency; Schwab won't do it for you in one transaction.
There's also a rather high transaction fee on many foreign stocks.
All of that said, it does the job. But I'd maybe consider Interactive Brokers instead first. They're a truly global firm that offers access to most/all exchanges from a single account, including the US. That said, I've not used them personally.
As my referral, you can get up to $500 when you become a Schwab client and make a qualifying net deposit.
https://www.schwab.com/public/schwab/nn/refer-prospect.html?refrid=REFERA972RUQQ
Why did I think of you? Schwab is my brokerage firm and is known for its low costs and great customer service.
Enjoy your the rest of your day.
> Wondering if anyone can let me know whether Schwab charged any commission for OTC trades?
Yes, I own a bunch of OTC stocks in my account and don't pay commissions there. There have been a handful of times where I've look into foreign companies that have ADRs that trade OTC, and most of the time they trade commission free but I have run into some that have commissions associated with them. But 99.99% of the time it's free.
*The NYSE. Nasdaq, etc have their own fees of like 1 or 2 cents that Schwab passes on to you. Other brokerages don't show that they are passing them onto you, but they are. (Cough Robinhood)
> Also do I get free Level 1 market data on all exchanges and OTC with the account?
I think Level 1 Market data might be a marketing term for the research that IBKR offers you. Schwab has their own platform for data that's very comprehensive. I'm not a pro or anything, but it's a ton of data on all stocks. They have their own data terminal kinda platform for free. I've used it a few times and made some decent trades off of it.
https://www.schwab.com/trading/software
I used to use IKBR years ago before switching to Robinhood and then Schwab. The biggest thing for me was that when you're going to Schwab it feels like you're stepping up from trading casually to trading more seriously. I still trade casually, but I have more tools at my disposal.
Are you thinking about Schwab Intelligent Income which is the automated withdrawal from SIP/SIPP for retirement or other income?
https://www.schwab.com/automated-investing/intelligent-income
Are you looking to get cash? If so, your best bet is to go to a bank or currency exchange service that offers currency exchange. All major airports have this, too.
If you're talking about holding GCP, then Schwab has a special type of account called a Schwab Global Account, which allows you to do forex trading as well as trading on foreign stock exchanges. You can transfer cash to it and then buy and sell currencies. To sign up, you have to download the application form (use the above link) and submit it through the secure message center.
** New ** As my referral, you can get up to $500 when you become a Schwab client and make a qualifying net deposit. Get started with my personal referral link. https://www.schwab.com/public/schwab/nn/refer-prospect.html?refrid=REFER69X4U8BA
Updated : 01/22/2021 7:57 PM EST
Use a target date fund. Much easier.
A target date fund is a complete portfolio in a single mutual fund. It will contain a global portfolio of stocks, plus a bond allocation that starts very low and slowly increases towards 60-70% as you near retirement. A single fund means you never have to rebalance. You just keep putting money into the one fund. You can also set up an automatic transfer to deposit money into the fund every time you get a paycheck, for example.
Schwab has excellent target date funds that have the lowest fees in the industry (0.08%, which includes the fees of the underlying funds). In your case, [Schwab Target 2060 Index Fund](http://www.schwab.com/public/schwab/investing/investment_help/investment_research/mutual_fund_research/mutual_funds.html?path=%2fProspect%2fResearch%2fmutualfunds%2fsummary.asp%3fsymbol%3dSWYNX (SWYNX) would be the best choice. When a 2065 fund comes out, you could switch to that.
If you were to DIY your fund selection, a challenge at Schwab is that they don't have an index mutual fund for emerging markets. So you could use SWTSX and SWISX, but that leaves a gap for emerging markets. Some people use SFENX, but it's a value fund with a much higher fee, and is not ideal. Others use SCHE, which is an ETF, which need to be traded in whole shares and don't support automatic investing.
The target date fund fixes that, since it includes an emerging markets fund (SCHE, actually; but since you don't need to worry about its underlying holdings, this detail doesn't matter).
Just trying to pay it forward. Here’s my referral link! If you make a qualifying deposit of at least $1,000 you can get up to $500 from Schwab.
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For those who plan to open a new charles schwab brokerage account - use https://www.schwab.com/public/schwab/nn/refer-prospect.html?refrid=REFERJRRF3BYE if you plan to deposit at least $1000 - it should give you $100 extra bonus. Max you can get is $500 based on your deposit.
Here. Ignore the more expensive non-index ones, which include active management; look at the ones with "index" in the name (e.g. Schwab Target 2060 Index Fund).
*UPDATED 12/27/2020
As my referral, you can get up to $500 when you become a Schwab client and make a qualifying net deposit. Get started with my personal referral link. https://www.schwab.com/public/schwab/nn/refer-prospect.html?refrid=REFER69X4U8BA
As my referral, you can get up to $500 when you become a Schwab client and make a qualifying net deposit. Get started with my personal referral link. https://www.schwab.com/public/schwab/nn/refer-prospect.html?refrid=REFER69X4U8BA
The first is a question for your 401K plan, not Schwab.
Yes, it looks like a normal Schwab brokerage account, except no margin, no options usually. Usually your 401K plan will have restrictions on preventing you from trading in stocks related to your company or it's competitors, though I don't know if Schwab will double check the 'blacklist', it may be just your responsibility to know the rules.
Usually you need to do a manual transfer and purchase the shares, at least Empower 401K won't do it automatically for you, it's likely the same for Morningstar.
I believe the ETFs are available but the options are not (not that you would be able to trade options in your PCRA anyways). The equivalent of VTI is SCHB, and generally it will have better execution on Schwab because Schwab is the 'authorized participant' creating the ETF shares: https://www.schwab.com/public/schwab/investing/investment_help/investment_research/etf_research/etfs.html?path=/Prospect/Research/etfs/overview/schwabETFs.asp%3Fsymbol%3Dundefined
Hey there! If you could use my referral I would appreciate it, thank you!
As my referral, you can get up to $500 when you become a Schwab client and make a qualifying net deposit.
https://www.schwab.com/public/schwab/nn/refer-prospect.html?refrid=REFERBDHHUHF7
Why did I think of you? Schwab is my brokerage firm and is known for its low costs and great customer service.
"Swap" is just a shortcut to sell and buy, same as the "Exchange" feature at Vanguard. (This is possible because mutual funds aren't stocks; they trade in whole dollar amounts, so there's no ask/bid spread, and you get the NAV at the end of the day.) The proceeds of the sale will be used to buy the new fund.
If this is a taxable account, and your fund you sell has gains, this will realize those gains, which may be a taxable event. In a taxable account, there's no way to get rid of a fund without triggering taxable gains/losses.
> So when I want to switch from one ETF to another, I sell, then wait 2 days for it to clear then buy the other ETF.
You can sell and immediately buy another ETF; no need to wait for settlement. The problem only exists if you then sell the new ETF before settlement; don't do that, or you'll incur a trading violation. You can read about settlement here.
As the other poster says, there's a transaction fee ($49.95 per purchase, to be exact) for Vanguard mutual funds at Schwab. It's not a commission fee, to be clear, but a transaction fee, and it's only per purchase.
Have you considered using a target date retirement fund instead? Schwab has an excellent series of index-fund-based target date funds. Schwab's are basically complete portfolios consisting of US stocks, international stocks, and bonds. The equity portion of such a fund is essentially equivalent to VTWAX.
A target date fund is designed to slowly increase the bond allocation as you approach the target date, where you'll end up at around 60% bonds. (Schwab's funds are "through" funds, meaning they increase bonds after retirement, too.) You can read more here.
Make sure you look at the index versions. The other ones have much higher expense ratios (fees) and have not shown any better performance.
As my referral, you can get up to $500 when you become a Schwab client and make a qualifying net deposit.
https://www.schwab.com/public/schwab/nn/refer-prospect.html?refrid=REFER69X4U8BA
UPDATED*12-05-2020
As my referral, you can get up to $500 when you become a Schwab client and make a qualifying net deposit.
https://www.schwab.com/public/schwab/nn/refer-prospect.html?refrid=REFERFKWHDDY8
Why did I think of you? Schwab is my brokerage firm and is known for its low costs and great customer service.
As my referral, you can get up to $500 when you become a Schwab client and make a qualifying net deposit. Get started with my personal referral link. https://www.schwab.com/public/schwab/nn/refer-prospect.html?refrid=REFERB8CPTF7W
Follow up for anyone who may be searching around and has the same problem - I was able to set up an automatic payment to my landlord's checking account by filling out and submitting Schwab's EFT Enrollment Form and submitting it through their online Message Center on my account.
Check out my referral!
brokerage account- checking -Traditional Ira or Roth IRA
https://www.schwab.com/public/schwab/nn/refer-prospect.html?refrid=REFER6499TRB8
Happy to answer any questions!
As my referral, you can get up to $500 when you become a Schwab client and make a qualifying net deposit. Get started with my personal referral link. :) https://www.schwab.com/public/schwab/nn/refer-prospect.html?refrid=REFERB8CPTF7W
I can't really answer most of your questions, but what's important in buying securities are settled funds. Here's a link to see how to check your settle funds.
Bank sweep generally means that your cash is placed in an account with Schwab that earns (very, very little at the moment) interest. When you trade you don't have to move this money to make it available.
As my referral, you can get up to $500 when you become a Schwab client and make a qualifying net deposit. Get started with my personal referral link. https://www.schwab.com/public/schwab/nn/refer-prospect.html?refrid=REFERABKEW6W4
use my referral link to get bonus for you and I both, cheers!
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I think we have different definitions of high yield.
Schwab’s saving account in the last 8 years had a maximum of 1.5% on 8/2019... in the same time period, other HYSAs reached nearly 3% (there are other savings accounts I’m aware of that reached 5%+). So, Schwab was definitely not a front runner.
The only consistency Schwab’s accounts have had is not being competitive.
Even compared to Schwab savings peak, you’re better off putting that money today into short term treasury bonds and you’ll end up with a better yield.
As my referral, you can get up to $500 when you become a Schwab client and make a qualifying net deposit. Get started with my personal referral link. https://www.schwab.com/public/schwab/nn/refer-prospect.html?refrid=REFERC3B7EQU4
https://robinhood.com/us/en/support/articles/investments-you-can-make-on-robinhood/
>Robinhood Financial currently doesn’t support ... Mutual funds
The fund that OP is asking about is a mutual fund, which Robinhood doesn't support. The fact that it's an index fund is irrelevant
As my referral, you can get up to $500 when you become a Schwab client and make a qualifying net deposit. Get started with my personal referral link.
https://www.schwab.com/public/schwab/nn/refer-prospect.html?refrid=REFERAEQBPNK6
you may have clicked “I agree” to a margin question on sign-up. If so then read this page https://www.schwab.com/margin “Once your Schwab brokerage account is approved for margin use, you can tap into your available funds simply by: [...] Placing a trade”
As my referral, you can get up to $500 when you become a Schwab client and make a qualifying net deposit. Get started with my personal referral link.
https://www.schwab.com/public/schwab/nn/refer-prospect.html?refrid=REFERAUGMCM76