Can You Buy Cryptocurrency Through Charles Schwab: Step-by-Step Process, Fees, Safety Checks, and Mistakes to Avoid
Charles Schwab, one of the largest financial services firms in the world, has entered the cryptocurrency market. In 2026, Schwab launched direct spot trading for Bitcoin and Ethereum through its "Schwab Crypto" service, alongside 24/7 cryptocurrency futures trading on its thinkorswim platforms[reference:0][reference:1]. This guide explains everything you need to know about buying cryptocurrency through Charles Schwab — from eligibility and setup to fees, custody, and the risks you should understand.
🏦 What Is Schwab Crypto?
Schwab Crypto is Charles Schwab's direct spot cryptocurrency trading service, launched in a phased rollout starting in the second quarter of 2026[reference:2]. The service allows eligible retail clients to buy and sell Bitcoin (BTC) and Ethereum (ETH) directly within their Schwab brokerage accounts[reference:3].
Schwab Crypto is offered through Charles Schwab Premier Bank, SSB, with Schwab acting as the custodian[reference:4]. Blockchain infrastructure provider Paxos handles trade execution and sub-custody services[reference:5][reference:6]. The service is designed to provide a seamless, integrated experience for Schwab clients who want exposure to the two largest cryptocurrencies by market capitalisation.
📌 Key takeaway: Schwab Crypto is a regulated, custodial service that allows you to buy and sell Bitcoin and Ethereum directly through your existing Schwab brokerage account. It is not a wallet service — your crypto is held in custody by Schwab Premier Bank.
In addition to spot trading, Schwab also offers 24/7 cryptocurrency futures trading on its thinkorswim platforms, covering Bitcoin, Ether, Solana, and Ripple products[reference:7][reference:8]. This is a separate offering from Schwab Crypto and is designed for more active traders.
🗺️ Eligibility and Availability
Schwab Crypto is available to eligible U.S. retail clients through a phased rollout[reference:9]. However, there are important geographic restrictions.
✅ Available In
All U.S. states except New York and Louisiana[reference:10]
Existing Schwab brokerage account holders
New clients who open a Schwab brokerage account
❌ Not Available In
New York (regulatory restrictions)[reference:11]
Louisiana (regulatory restrictions)[reference:12]
International clients (currently U.S. only)
Schwab has over 39 million active brokerage accounts and manages more than $11 trillion in client assets as of early 2026[reference:13][reference:14]. The phased rollout began on May 13, 2026, with the service gradually opening to the broader client base[reference:15].
⚠️ Important: If you reside in New York or Louisiana, you cannot currently access Schwab Crypto. Check Schwab's official website for updates on availability.
📋 Step-by-Step Process
Here is a practical guide to buying cryptocurrency through Charles Schwab.
1Open a Schwab brokerage account. If you don't already have one, visit Schwab's website or app to open a brokerage account. You will need to provide personal information and complete identity verification.
2Fund your account. Transfer funds into your brokerage account via bank transfer, wire, or other supported methods. Ensure you have sufficient cash to cover your intended crypto purchase.
3Access Schwab Crypto. Once your account is funded, navigate to the "Schwab Crypto" section within your Schwab account (available on Schwab.com, Schwab Mobile, or thinkorswim)[reference:16].
4Select your cryptocurrency. Currently, Schwab Crypto supports Bitcoin (BTC) and Ethereum (ETH)[reference:17].
5Enter your trade details. Specify the amount you want to buy (in USD) or the quantity of crypto you want to purchase.
6Review and confirm. Review the trade details, including the fee (0.75% of the trade value)[reference:18], and confirm the transaction.
7Monitor your holdings. Your crypto holdings will appear in your Schwab account alongside your other investments. You can track prices and manage your position through the Schwab platform.
📌 Key takeaway: The process is integrated into your existing Schwab experience. You do not need to create a separate account or wallet to buy crypto through Schwab Crypto[reference:19].
Futures Trading on thinkorswim
For more advanced traders, Schwab offers 24/7 cryptocurrency futures trading on its thinkorswim platforms[reference:20]. This includes futures on Bitcoin, Ether, Solana, and Ripple[reference:21]. To access this, you need a Schwab brokerage account with futures trading enabled.
💰 Fees and Costs
Schwab Crypto charges a straightforward fee structure. Here is what you need to know.
📊 Trading Fee
Fee:75 basis points (0.75%) per trade[reference:22][reference:23]
Applies to: The dollar value of each trade[reference:24]
Industry context: Higher than Morgan Stanley (0.50%) but lower than Coinbase (0.60% for its users)[reference:25]
📈 Other Costs
No account fees: No additional fees for holding crypto in your Schwab account.
No custody fees: Custody is included in the service.
Spread: As with any trading platform, you may encounter a spread between the buy and sell price.
⚠️ Important: The 0.75% fee is charged on every trade. For a $1,000 purchase, the fee would be $7.50. This is a significant cost, especially for frequent traders or smaller transactions.
🔐 Custody and Security
Understanding how your crypto is held is essential for assessing safety and risk.
🏛️ Custody Arrangement
Primary custodian: Charles Schwab Premier Bank, SSB[reference:26]
Sub-custody and execution: Paxos[reference:27][reference:28]
Account structure: A separate crypto account linked to your brokerage account[reference:29]
🛡️ Security Features
Institutional-grade custody: Schwab is building a digital asset custody platform with a focus on key management and security architecture[reference:30]
Regulated bank custody: Assets are held by a nationally chartered bank[reference:31]
Paxos expertise: Paxos is a regulated blockchain infrastructure provider with a strong track record in crypto custody
📌 Key takeaway: Schwab Crypto is a custodial service — Schwab holds your private keys on your behalf. This is different from a self-custody wallet where you control your own keys. While this reduces the risk of losing your keys, it means you are trusting Schwab and Paxos with the security of your assets.
🛡️ Fraud Prevention and Safety Checks
Schwab is a regulated financial institution with strong security measures, but you still need to be vigilant.
🔒 Schwab's Security Measures
Two-factor authentication (2FA): Required for account access
Encryption: All data transmitted between you and Schwab is encrypted
Fraud monitoring: Continuous monitoring for suspicious activity
Regulatory oversight: Schwab is regulated by the SEC and FINRA
✅ Your Safety Checklist
Enable 2FA: Use an authenticator app, not SMS, for better security
Use a strong password: Unique and complex
Verify the URL: Always use schwab.com or the official app
Beware of phishing: Schwab will never ask for your password or 2FA code via email or phone
Monitor your account: Regularly check your transaction history
⚠️ Important: While Schwab's platform is secure, the biggest risk is often user error or social engineering. Never share your login credentials or 2FA codes with anyone.
📋 Comparison Table: Schwab Crypto vs. Competitors
This table compares Schwab Crypto with other popular ways to buy cryptocurrency.
Feature
Schwab Crypto
Coinbase
Binance.US
Robinhood Crypto
Trading Fee
0.75%[reference:32]
0.60% (for users)[reference:33]
0.10% – 0.50%
0.00% (spread-based)
Assets Supported
BTC, ETH (spot); BTC, ETH, SOL, XRP (futures)[reference:34]
250+
150+
15+
Custody
Schwab Premier Bank / Paxos[reference:35]
Coinbase Custody
Binance Custody
Robinhood Custody
Regulated
✅ Yes (SEC, FINRA)
✅ Yes
✅ Yes (limited states)
✅ Yes
Available States
All except NY, LA[reference:36]
All U.S. states
Most U.S. states
All U.S. states
Integration
Integrated with brokerage account
Standalone app
Standalone app
Integrated with brokerage account
Fees and features are approximate and subject to change. Always verify current information on the platform's official website.
✅ Practical Checklist for Buying Crypto Through Schwab
Check eligibility. Ensure you reside in a state where Schwab Crypto is available (not NY or LA).
Open a Schwab brokerage account. If you don't already have one, complete the account opening process.
Fund your account. Transfer cash into your brokerage account.
Enable security features. Set up 2FA and use a strong password.
Understand the fee. Be aware of the 0.75% trading fee.
Start small. Make a small test purchase to understand the process and fees.
Monitor your holdings. Track your crypto positions alongside your other investments.
Consider tax implications. Cryptocurrency transactions may be taxable events.
Stay informed. Follow Schwab's announcements for updates on supported assets and features.
Be cautious of scams. Only use official Schwab channels.
💡 Example Scenario
Scenario: A Schwab Client Buying Bitcoin
Maria is a Schwab client living in Texas. She has $5,000 in her brokerage account and wants to buy Bitcoin through Schwab Crypto.
Maria's process:
Step 1: She logs into her Schwab account and navigates to the "Schwab Crypto" section.
Step 2: She selects Bitcoin (BTC) and enters $1,000 as the purchase amount.
Step 3: She reviews the trade details: the fee is 0.75% ($7.50), so the total cost is $1,007.50.
Step 4: She confirms the trade. The Bitcoin is purchased and held in her Schwab Crypto account.
Step 5: She can now see her Bitcoin holdings alongside her stocks and ETFs in her Schwab portfolio.
Outcome: Maria successfully buys Bitcoin through Schwab. She appreciates the seamless integration with her existing account but notes the 0.75% fee.
Alternative: If Maria had used Coinbase, she would have paid a 0.60% fee, slightly lower than Schwab's 0.75%[reference:37]. However, she values the convenience of having all her investments in one place.
Lesson: Schwab Crypto offers convenience and integration, but the fee is higher than some competitors. It is best suited for investors who value the Schwab ecosystem over the lowest possible fee.
🚧 Common Mistakes
Assuming Schwab Crypto is available in all states. It is not — it is unavailable in New York and Louisiana[reference:38].
Overlooking the 0.75% fee. This fee applies to every trade and can add up for frequent traders.
Confusing spot trading with futures. Schwab offers both, but they are different products with different risks.
Not understanding custody. Schwab holds your crypto — you do not control the private keys.
Falling for phishing scams. Always verify you are on the official Schwab website.
Not enabling 2FA. Two-factor authentication is essential for account security.
Ignoring tax implications. Buying and selling crypto may trigger taxable events.
Assuming you can buy any cryptocurrency. Currently, only Bitcoin and Ethereum are available for spot trading[reference:39].
Not checking the spread. The price you see may include a spread, adding to the cost.
Leaving funds in the crypto account unnecessarily. If you are not actively trading, consider holding cash in your main brokerage account.
⚠️ Risk Warning
Buying cryptocurrency through Charles Schwab carries significant risks, including the potential for total loss of capital.
Market risk: Cryptocurrency prices are volatile and can drop 50% or more in a short period.
Custody risk: You do not control the private keys. Your assets are held by Schwab Premier Bank and Paxos[reference:40]. If the custodian is compromised or fails, your funds could be at risk.
Regulatory risk: Changes in laws could affect the availability or legality of crypto trading through Schwab.
Liquidity risk: In stressed market conditions, it may be difficult to sell your holdings at a fair price.
Technology risk: Platform outages, execution errors, or bugs could affect your ability to trade.
Tax risk: You may owe taxes on gains, and failure to report can result in penalties.
Fee risk: The 0.75% trading fee can erode profits, especially for small or frequent trades.
Limited asset selection: Currently, only Bitcoin and Ethereum are available for spot trading[reference:41]. This limits diversification within the Schwab Crypto platform.
This article does not provide personalised financial, legal, or tax advice. The information is for educational purposes only. You should conduct your own research, verify all data from current and reliable sources, and consult with a qualified professional before making any decisions. Past performance is not indicative of future results. Never invest more than you can afford to lose.
❓ Frequently Asked Questions
Can I buy cryptocurrency through Charles Schwab?
Yes. Charles Schwab launched Schwab Crypto in 2026, allowing eligible U.S. retail clients to buy and sell Bitcoin (BTC) and Ethereum (ETH) directly through their brokerage accounts[reference:42][reference:43].
What cryptocurrencies can I buy on Schwab?
Currently, Schwab Crypto supports Bitcoin (BTC) and Ethereum (ETH) for spot trading[reference:44]. Schwab also offers cryptocurrency futures trading on Bitcoin, Ether, Solana, and Ripple products on its thinkorswim platforms[reference:45].
What is the fee for buying crypto on Schwab?
Schwab Crypto charges a 75 basis point (0.75%) fee on the dollar value of each trade[reference:46][reference:47]. This is higher than some competitors but lower than others.
Is Schwab Crypto available in all U.S. states?
No. Schwab Crypto is available in all U.S. states except New York and Louisiana[reference:48].
Who custodies my crypto on Schwab?
Your crypto is held in custody by Charles Schwab Premier Bank, SSB, with Paxos providing trade execution and sub-custody services[reference:49][reference:50].
Can I transfer crypto out of Schwab to an external wallet?
Schwab Crypto is currently a custodial service designed for buying, selling, and holding within your Schwab account. Check Schwab's official documentation for the latest information on transfer capabilities.
How do I access Schwab Crypto?
Schwab Crypto is available through Schwab.com, Schwab Mobile, and thinkorswim platforms[reference:51]. You need an eligible Schwab brokerage account to access it.
Is Schwab Crypto safe?
Schwab Crypto is a regulated offering with custody provided by a nationally chartered bank and a reputable blockchain infrastructure provider[reference:52][reference:53]. However, like all cryptocurrency investments, it carries market, custody, and regulatory risks.