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How to Buy Crypto With Charles Schwab [2024]

How to Buy Crypto With Charles Schwab
Diana Paluteder

Summary: To buy crypto with Charles Schwab, we recommend US investors sign up with a regulated multi-asset investment platform. After testing multiple other trading platforms, we found eToro to be the best choice for Charles Schwab customers, as it offers low fees, 80+ different crypto assets, and is trusted by over 30 million users.

Best Crypto Exchange for Intermediate Traders and Investors

  • Invest in 70+ cryptocurrencies and 3,000+ other assets including stocks and precious metals.

  • 0% commission on stocks - buy in bulk or just a fraction from as little as $10. Other fees apply. For more information, visit etoro.com/trading/fees.

  • Copy top-performing traders in real time, automatically.

  • eToro USA is registered with FINRA for securities trading.

30+ million Users
eToro is a multi-asset investment platform. The value of your investments may go up or down. Your capital is at risk. eToro USA LLC does not offer CFDs, only real Crypto assets available. Don’t invest unless you’re prepared to lose all the money you invest.

Can you buy crypto with Charles Schwab? 

While Charles Schwab offers indirect exposure to crypto through trusts, futures, and exchange-traded funds (ETFs), it doesn’t offer customers cryptocurrency spot trading directly on its platform. Instead, customers can connect their Charles Schwab bank accounts to a licensed crypto broker to buy digital assets like Bitcoin (BTC) and Ethereum (ETH). 

How to buy crypto with Charles Schwab?

The best way to buy crypto with a Charles Schwab online account in the US is through a broker like eToro, which is a widely trusted digital asset platform with over 70 cryptocurrencies and unique features such as Copy Trading, which enables users to copy top-performing crypto traders, in addition to a staking service, custom watchlist, as well as advanced charts and technical analysis tools. 

How to buy crypto with Charles Schwab: Step-by-Step

You can get started in minutes with four simple steps:

  • Step 1: Create an account on eToro and complete your verification (personal or company);
  • Step 2: Enter the USD amount you want to deposit on the eToro platform;
  • Step 3: Connect your Charles Schwab account to deposit your selected fiat currency;
  • Step 4: The final step is to find the cryptocurrency you want to purchase and execute your trade.

Disclaimer: Cryptocurrency is offered by eToro USA LLC (“the MSB”) (NMLS: 1769299) and is not FDIC or SIPC insured. Investing involves risk, and content is provided for educational purposes only, does not imply a recommendation, and is not a guarantee of future performance. Finbold is not an affiliate and may be compensated if you access certain products or services offered by the MSB.

Crypto on eToro. Source: etoro.com

Best Crypto Exchange for Intermediate Traders and Investors

  • Invest in 70+ cryptocurrencies and 3,000+ other assets including stocks and precious metals.

  • 0% commission on stocks - buy in bulk or just a fraction from as little as $10. Other fees apply. For more information, visit etoro.com/trading/fees.

  • Copy top-performing traders in real time, automatically.

  • eToro USA is registered with FINRA for securities trading.

30+ million Users
eToro is a multi-asset investment platform. The value of your investments may go up or down. Your capital is at risk. eToro USA LLC does not offer CFDs, only real Crypto assets available. Don’t invest unless you’re prepared to lose all the money you invest.

About Charles Schwab

Charles Schwab (NYSE: SCHW) is an American multinational financial services company headquartered in Westlake, Texas. It offers a wide range of investing and banking services, including consulting and wealth management advisory services, to both retail and institutional customers. The bank boasts over 360 branches, primarily in the US and the UK, with over $8.5 trillion in client assets, making it the 7th largest banking institution in the United States.

Charles Schwab’s homepage. Source: schwab.com

Services offered by Charles Schwab include: 

  • Retirement accounts: 401(k)s and individual retirement accounts (IRAs);
  • Investment products: Stocks, mutual funds, ETFs, indirect crypto trading, options, futures, fixed income investments such as bonds and certificates of deposits (CDs);
  • Banking services: Checking accounts, savings accounts, small business accounts, credit cards, loans, and mortgages;
  • Insurance products: Health, life, and home insurance;
  • Wealth management: Financial planning, portfolio management, thematic investing, and Robo-advisors

Charles Schwab crypto policy

Although Charles Schwab customers can get exposure to digital asset markets in numerous ways, such as coin trusts, Bitcoin futures, cryptocurrency stocks, and ETFs, they cannot trade cryptocurrencies like Bitcoin or Ethereum directly through their accounts. However, Charles Schwab crypto users can utilize their online banking account to deposit or withdraw funds to or from regulated crypto exchanges.

The bank encourages clients interested in cryptocurrency to approach them as speculative financial instruments and consider their investment goals as well as the risks involved. They recommend cryptocurrency be used primarily for trading outside the traditional diversified portfolio.

For educational resources on digital assets, the Charles Schwab crypto education section offers dedicated advice, which you can find here on their website’s cryptocurrencies page.

Can I buy cryptocurrency on Charles Schwab? 

No, Charles Schwab trading platform doesn’t currently offer cryptocurrency spot trading. However, they do offer access to certain investment products that have exposure to cryptocurrency, such as ETFs that invest in companies related to blockchain technology.

Furthermore, Charles Schwab also offers futures trading for Bitcoin and Ethereum through the Chicago Mercantile Exchange (CME). If you’re interested in buying cryptocurrency directly, you’ll need to use a specialized cryptocurrency exchange or broker.

Charles Schwab trading fees

When investing in cryptocurrencies, it’s crucial to consider the cost associated with different platforms. For Charles Schwab crypto users, the platform offers investment options like trusts, ETFs, and Bitcoin futures. However, these come with substantial fees: $0.65 per options contract, $2.25 for futures (both online and broker-assisted), and a $25 broker-assistance fee for stocks, ETFs, and options. These high costs can significantly impact your investment returns, and there’s a risk of losing more than the invested amount. Always refer to Charles Schwab’s online portal for the latest fee information.

On the other hand, eToro, a renowned third-party investment broker, presents a more cost-effective option for crypto investments. With a trading fee of only 1% included in the market price for opening and closing positions, eToro stands out for its lower fees and strict adherence to regulatory standards. However, be aware of additional charges like overnight fees, a flat withdrawal fee of around $5, and conversion fees where applicable. As with any platform, eToro’s fees are subject to change, so it’s advisable to check their latest crypto fees before trading. The overall lower fee structure makes eToro a favored option for those looking to invest in cryptocurrencies.

How to buy crypto safely

  • Research the cryptocurrency you want to buy: Make sure you understand how it works and what the risks are; 
  • Only use a safe device: Avoid public computers and Wi-Fi networks. Always use your personal computer with a VPN, which helps establish a secure connection between you and the web, keeping your sensitive information safe;
  • Choose a reputable exchange: Ensure the exchange has a license from an appropriate regulator in your country and has a solid track record. Study the exchange’s user terms and agreements carefully to learn more about where they will keep your money and what happens to your funds if the business goes bankrupt. You may also want to scour through user reviews to catch any red flags;
  • Secure your account: Use two-factor authentication and a strong password to protect your account;
  • Use a secure wallet: Store your cryptocurrency in a secure wallet to protect it from hackers. You can opt for either a hot (online) or cold (offline) wallet. To choose the right one for you, make sure to check out our in-depth guide on crypto wallets;
  • Don’t invest money you can’t afford to lose: Because the crypto market can be so volatile, you need to be conservative with your investments, particularly when starting out. For more investing tips, take a look at our guide on investing mistakes to avoid;
  • Monitor your investments: Keep an eye on the market and be aware of any changes in the price of the cryptocurrency you’re investing in. 

Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk. 

FAQs about how to buy crypto with Charles Schwab

Best Crypto Exchange for Intermediate Traders and Investors

  • Invest in 70+ cryptocurrencies and 3,000+ other assets including stocks and precious metals.

  • 0% commission on stocks - buy in bulk or just a fraction from as little as $10. Other fees apply. For more information, visit etoro.com/trading/fees.

  • Copy top-performing traders in real time, automatically.

  • eToro USA is registered with FINRA for securities trading.

30+ million Users
eToro is a multi-asset investment platform. The value of your investments may go up or down. Your capital is at risk. eToro USA LLC does not offer CFDs, only real Crypto assets available. Don’t invest unless you’re prepared to lose all the money you invest.

How to buy crypto with Charles Schwab?

You can buy crypto with Charles Schwab by connecting your banking account to a third-party cryptocurrency exchange.

Can you buy crypto with Charles Schwab?

Charles Schwab doesn’t offer direct crypto trading. Yet, customers can link bank accounts to a FINRA-regulated broker for crypto investments.

What is Charles Schwab's crypto policy?

Charles Schwab customers can buy, sell, and trade digital assets through online banking accounts or services on regulated exchanges.

What crypto exchanges does Charles Schwab allow?

Customers can connect their Charles Schwab account to a FINRA-licensed cryptocurrency broker to buy crypto.

Can I buy cryptocurrency on Charles Schwab?

Charles Schwab doesn’t allow direct cryptocurrency purchases. Instead, they provide exposure through ETFs investing in blockchain-related companies.

Can I buy Bitcoin on Charles Schwab?

Unfortunately, no, you can’t buy Bitcoin on Charles Schwab directly, as they don’t offer cryptocurrency spot trading. However, Charles Schwab does offer futures trading for Bitcoin through the Chicago Mercantile Exchange (CME).

What is the Charles Schwab Cryptocurrency ETF?

The Charles Schwab Crypto ETF provides exposure to cryptocurrencies. Investors can access a basket of crypto-related assets without buying directly. Included assets span blockchain companies to those with significant cryptocurrency holdings. Investing in Charles Schwab’s crypto ETF offers a diversified, less risky approach compared to buying cryptocurrencies directly.

Is there a Charles Schwab crypto wallet?

No, Charles Schwab does not offer a crypto wallet. Clients can access the cryptocurrency market indirectly through cryptocurrency-focused ETFs or stocks related to blockchain technology. For direct cryptocurrency transactions and storage, investors should look to specialized cryptocurrency exchanges that provide crypto wallets.

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