Schwab Lets Regular Investors Buy Bitcoin and Ethereum
Charles Schwab is allowing its 39 million customers to purchase Bitcoin and Ethereum directly through the same app they use for stocks, ETFs, and retirement plans.
This move places risky digital assets inside a familiar, regulated environment that many people trust for long‑term savings.
Key Points
- Crypto is not a bank deposit, FDIC‑insured, or SIPC‑protected.
- Only Bitcoin and Ethereum will be offered initially, covering about 75 % of the crypto market.
- Trading fee: 0.75 %, lower than many brokerages but higher than zero‑commission stock rates.
- A separate crypto account is linked to the main brokerage account, with Paxos handling execution and custody.
- New York and Louisiana residents are excluded at launch; no external crypto deposits or withdrawals.
The platform blends crypto into everyday investing habits. Seeing Bitcoin next to IRA stocks and cash balances can make the asset feel part of the same portfolio, even though it lacks traditional securities’ protections. This mismatch may influence investor expectations and behavior—something regulators must monitor closely.
Schwab is not the first firm to touch crypto, but its size and reputation give it a unique influence. The company’s decision reflects growing demand for direct crypto access, as competitors like Robinhood and Coinbase already offer it. By integrating crypto into a mainstream brokerage, Schwab is moving digital assets deeper into the fabric of American personal finance.
While convenient, this integration means that during a market downturn investors could liquidate stocks, ETFs, and crypto all at once—without realizing that only the traditional holdings are protected. The true test will come when stress hits and people have to confront which parts of their portfolio are truly safe.
