Charles Schwab UK platform review: what are the pros and cons?

Charles Schwab is a well-established American brokerage firm that offers UK investors access to US financial markets.

This review explores the company's background, services, fees, technology, security, and customer service, providing insights into the advantages and disadvantages for UK-based investors.​

Charles Schwab: who are they?

Founded in 1971 by Charles R. Schwab, the company has grown into one of the largest brokerage firms in the United States, managing over $9 trillion in client assets and serving more than 33 million brokerage accounts worldwide.

Charles Schwab entered the UK market in 1993 and, after a brief hiatus, relaunched its services for UK investors in 2003.

What does Charles Schwab do?

Charles Schwab provides a range of investment services, including brokerage accounts, financial advisory, and banking services.

For UK investors, the firm offers access to US financial markets through its international brokerage accounts, enabling trading in US-listed stocks, ETFs, bonds, and mutual funds.

What are the pros and cons of Charles Schwab?

Considering Charles Schwab as your financial provider?

Here are the main advantages and disadvantages to keep in mind:

The pros of Charles Schwab

• Commission-free trading: $0 commission on online trades of US-listed stocks and ETFs.

• No account minimums: No minimum deposit required to open an account.

• Advanced trading platforms: Access to the thinkorswim® platform, offering advanced charting and analysis tools.

• Fractional share trading: Ability to purchase fractional shares of S&P 500 companies through the Stock Slices™ service.

• Educational resources: Extensive learning materials and tools for investors of all levels.

The cons of Charles Schwab

• Limited market access: Primarily focused on US markets; limited access to non-US securities

• Currency conversion fees: Deposits must be in USD; currency conversions can incur fees up to 1%.

• No UK tax-Wrapped accounts: Does not offer ISAs or SIPPs, which are tax-efficient investment accounts in the UK.

• No FSCS protection: UK investors are not covered by the Financial Services Compensation Scheme. ​Instead, UK based investors at Charles Schwab benefit from the US-based Securities Investor Protection Corporation (SIPC) and "excess SIPC" coverage. This means that if Schwab were to fail, your assets would be protected up to certain limits under US rules, not UK rules.

What services do Charles Schwab offer?

Charles Schwab's services for UK investors include:​Wise

• Brokerage accounts: Access to US stocks, ETFs, bonds, and mutual funds

• Options trading: Trade options with a $0.65 per contract fee.

• Mutual funds: Access to a range of mutual funds, including offshore options.

• Fractional shares: Purchase fractional shares of S&P 500 companies.

• Educational tools: Webinars, workshops, and research tools to support investor education. ​

What fees does Charles Schwab charge?

Charles Schwab offers competitive pricing.

This is what their fees look like:

• US Stocks and ETFs: $0 commission on online trades.

• Options trading: $0.65 per contract.

• Broker-assisted trades: $25 service charge.

• Currency conversion: Fees up to 1% for converting GBP to USD.

• International trades: $50 fee for trades on non-US exchanges.

• Withdrawal fees: $25 per wire transfer. There may be currency conversion fees if the wire transfer is not in US dollars, ranging from 0.2% to 1%

Our expert says: Why you should look beyond financial adviser fees

"It can be daunting paying for financial advice, but it should add more value than it costs – and benefit you in the long term.

For example, optimising your pension strategy so you have a fund with lower fees and a track record of strong performance could pay dividends when you retire, although there are no guarantees.

There are other benefits as many people who received financial advice have a clearer understanding of their money goals, more confidence in retirement planning and experience lower financial stress.”

Lisa-Marie Voneshen, Senior Content Writer

What technology does Charles Schwab use?

Charles Schwab provides robust trading platforms:​

• thinkorswim® Desktop: Advanced platform with customisable charts, technical analysis tools, and a wide range of order types.

• Mobile app: Offers account access, trading capabilities, and market monitoring on the go.

• Web platform: User-friendly interface for managing investments and accessing research tools. ​

Charles Schwab security: is it secure?

Charles Schwab employs multiple security measures to protect your data and finances, including:

• Two-factor authentication: Enhanced login security through Symantec VIP.

• SchwabSafe® program: Includes encryption, identity verification, and fraud monitoring. ​Schwab

• SIPC protection: Covers up to $500,000

Does Charles Schwab have good customer service?

Charles Schwab offers a comprehensive customer service experience tailored for UK investors.

Clients can access support through multiple channels, including phone and secure email.

For new clients, the UK-based contact number is +44 203 795 2704, while existing clients can reach out at 0808 234 6306.

These lines are staffed by registered investment professionals who are experienced and multilingual, ensuring that clients receive informed assistance.

Support is available during UK business hours, Monday to Friday, from 9:00 am to 6:00 pm. Additionally, U.S.-based support is accessible from 10:30pm Sunday to 6:00am Saturday (UK Time), providing extended coverage for clients who may need assistance outside of standard hours.

While Charles Schwab does not currently offer interactive live chat support, the company's well-organised FAQ section provides a wealth of information on topics such as account opening, foreign transaction fees, and security features like two-factor authentication.

Overall, Charles Schwab's customer service is very good, offering UK investors multiple avenues to seek assistance and ensuring that support is available across various time zones.​

Get expert financial advice

Navigating the investment landscape, especially when dealing with international platforms like Charles Schwab, can be complex.

While Charles Schwab offers a range of services and tools tailored for UK investors interested in U.S. markets, it's essential to consider how these align with your individual financial goals and circumstances.​

Consulting with a qualified financial adviser can provide personalised insights, helping you make informed decisions that account for factors like tax implications, investment strategies, and risk tolerance.

An adviser can also assist in evaluating whether Charles Schwab's offerings are the right fit for your portfolio or if alternative platforms might better serve your needs.​