Charles Schwab finally lets you trade crypto, but is it actually a good deal?

For years, the "old guard" of finance treated Bitcoin like a casino game. But that's changing. If you've already got a brokerage account, you might be wondering how to buy bitcoin on charles schwab now that they've finally opened the doors. It's a massive shift for retail access, and for someone who prefers the comfort of a traditional interface, it's an easy win. But as someone who's been in the crypto trenches since 2019, I have some serious reservations about whether this is the smartest way to enter the market. We previously covered Direct BTC and ETH trading for more background.

The short answer

You can now trade Bitcoin and Ethereum directly within your Schwab account. You don't need to open a new account or navigate a separate app. You simply search for the assets in your trading terminal and execute the trade just like you would with a stock or an ETF.

How it actually works

The process is designed to be as frictionless as possible. Since you're already KYC'd (Know Your Customer) with Schwab, there's no new paperwork.

First, log into your Schwab account. From the trading menu, you can search for the assets. Instead of buying a proxy like a trust or an ETF, you're engaging in direct trading. You decide how much you want to spend, hit buy, and the assets appear in your portfolio.

It's a streamlined experience. You don't have to worry about seed phrases, private keys, or the terrifying feeling of sending funds to a long string of random characters. Schwab handles the custody, meaning they hold the keys for you.

Where people get tripped up

This is where I need to be honest. The convenience of a brokerage comes with a price, and I don't just mean the money.

First, let's talk about the cost. We previously covered Schwab's BTC and ETH fees, and the 0.75% fee is a tough pill to swallow. In the world of native exchanges, that's expensive. If you're moving large sums, those fractions of a percent add up quickly.

Second, and more importantly, is the issue of custody. When you buy through Schwab, you don't actually own the private keys. You own a claim to the asset held by the brokerage. If you're okay with that, fine. But the whole point of Bitcoin is "not your keys, not your coins." I've seen enough market turbulence to know that relying on a single point of failure is a risk.

Putting it into practice

If you're just starting out and the idea of a digital wallet makes you sweat, Schwab is a safe place to dip your toes in. It's a low-stress entry point. But if you're planning to hold a significant amount of crypto for the long term, I strongly suggest moving your assets off the brokerage.

I've always preferred a hybrid approach. I might use a platform for the initial purchase, but I never leave my main holdings there. For anyone serious about security, I recommend a hardware wallet. I've used the Ledger Nano Gen5 because it's affordable at around $99 and brings a touchscreen to the entry-level price point. It lets you take full control of your private keys, which is the only way to truly sleep soundly in this market.

If you find the Schwab fees too steep, you might want to look at native exchanges. For example, I often point people toward MEXC because they have 0% maker fees on spot trading, which is a stark contrast to the brokerage model.

The bottom line is that accessibility is great, but don't let convenience blind you to the costs and the risks of custodial holdings. Buy on Schwab if you must, but learn how to move those assets into your own hands as soon as possible.

Trade the news at our editorial-picked exchange: Bybit