Charles Schwab

Reviewed December 2009

Easy-to-use website
Broad range of investment offerings
Customer service available 24/7
Banking services

Higher commissions
$1,000 minimum initial investment

Our Analysis

Experts say Charles Schwab has excellent investment tools, research, and customer support -- available in person at hundreds of branch locations. Trades cost $13 unless you have $1 million or more in assets or make at least 120 trades per year, in which case you pay $9. The $1,000 account minimum is waived if you deposit at least $100 per month in your account. If your trading needs are simple and you don't think you'll take advantage of in-person advice, TradeKing's trades cost half as much.

The best reviews of Charles Schwab come from our top-ranked reviewers: SmartMoney magazine, Barron's and Kiplinger.com. J.D. Power and Associates' 2009 self-directed investor satisfaction survey also includes Schwab. TopTenReviews.com evaluates Charles Schwab as well, and Forbes names its website a Forbes Favorite.

Our Sources

1. SmartMoney.com Details/Subscribe

This annual broker survey names the best and worst online brokers (out of sixteen) in six categories, and ranks them in a table at the end of the article. Charles Schwab is ranked third, and it's named the best broker in the area of research. Reviewers say they like its "new, easy-to-use website."

Review: SmartMoney's 2009 Broker Survey, Roya Wolverson and Neil Parmar, May 19, 2009

2. Barron's

Charles Schwab lands in the middle of the pack in this year's ranking of 25 online brokers, but it is named third-best for long-term investing. Charles Schwab loses points for its trading technology and costs.

Review: Blue Chips, Theresa W. Carey, March 16, 2009

3. ConsumerReports.org Details/Subscribe

Charles Schwab is included in ConsumerReports.org online broker survey. Brokers are rated for their account service, website, and phone and personal service.

Review: Brokerage Service Ratings, Editors of ConsumerReports.org, May 2009

4. J.D. Power and Associates

More than 5,000 "self-directed" investors -- those who make all of their investment decisions without an investment adviser -- responded to J.D. Power and Associates' annual investor satisfaction survey in June and July 2009. Out of 13 brokers, Charles Schwab is the highest rated for overall customer satisfaction and is this year's award recipient.

Review: 2009 Self-Directed Investor Satisfaction Study, Editors of J.D. Power and Associates, Oct. 1, 2009

5. Kiplinger.com Details/Subscribe

Editors at Kiplinger.com evaluate a dozen brokerages by scrutinizing costs, site features and research tools; Charles Schwab comes in second in this year's rankings. Charles Schwab wins notice for its range of investment products, including access to foreign markets, as well as its website and customer service.

Review: Best of the Online Brokers, Thomas M. Anderson, Nov. 2008

6. Forbes Details/Subscribe

Forbes reviews the websites of 28 online brokers. Charles Schwab's site is named the Forbes Favorite; the review says that it is "simple but well-designed."

Review: Web Site Reviews: Brokers, Editors of Forbes

7. TopTenReviews.com

Sixteen brokers are reviewed here, and data about them are summarized in a comparison chart. Charles Schwab is rated seventh out of the 16. The reviewer likes Charles Schwab's 24/7 customer service and says, "you can invest your money in just about anything through this online broker."

Review: Charles Schwab Review, Editors of TopTenReviews.com