Charles Schwab has switched on direct spot trading of Bitcoin and Ether for roughly 40 million retail brokerage accounts. The service, which went live in phases beginning in mid-May, allows clients to purchase the two largest cryptocurrencies through the same platforms and login they already use for stocks, bonds and cash.

As of the end of the second quarter, Schwab reported approximately $13.1 trillion in total client assets and 39.8 million active brokerage accounts. The crypto product sits alongside those holdings, charging a flat 0.75 percent of the trade value. Availability covers 48 U.S. states, with New York and Louisiana remaining excluded for now.

How the Service Works

Trades are executed by Paxos, a blockchain infrastructure firm regulated by the Office of the Comptroller of the Currency. Client assets are held by Charles Schwab Premier Bank as custodian, with Paxos providing sub-custody. The arrangement places the digital assets outside both FDIC insurance and SIPC protection. Schwab’s disclosures state that the cryptocurrency is not a deposit, is not insured by the FDIC, is not protected by SIPC, and carries the risk of total loss of principal.

At launch, clients can only buy and sell Bitcoin and Ether within the Schwab platform. Deposits or withdrawals of previously held crypto from external wallets are not yet supported. The firm has confirmed that a transfers pilot is under way and that support for external transfers is planned.

Schwab positioned the product as a response to client demand for keeping digital assets together with traditional investments rather than on separate platforms. Before the launch, clients already held about $25 billion in crypto exchange-traded products through the firm, representing roughly one-fifth of the overall spot crypto ETP market.

Background and Timeline

Schwab had previously offered indirect crypto exposure through spot Bitcoin and Ether exchange-traded products, futures, options and related funds. The company confirmed in the spring that plans for direct spot trading remained on schedule for the first half of 2026. An employee pilot preceded the public rollout that began on May 13.

By mid-August the service had reached the reported scale of about 40 million accounts. Second-quarter results showed record revenue of $7.1 billion, a 21 percent increase from a year earlier, alongside 1.4 million new brokerage accounts opened and core net new assets of roughly $120 billion.

The firm’s own research continues to describe cryptocurrency as a speculative, high-risk holding. An April report noted that even a small allocation of 1 to 3 percent in Bitcoin or Ether can account for a disproportionate share of portfolio risk, given historical declines of more than 70 percent in past cycles. The research concluded there is no single correct allocation and treated crypto as a satellite position.

Competitive Pricing and Next Steps

Schwab’s 0.75 percent fee sits below the roughly 1 percent spread charged by Fidelity and above the 0.5 percent rate introduced by Morgan Stanley’s E*Trade platform. E*Trade’s pilot, which began earlier in May, also includes Solana and is scheduled for wider release later in the year.

Schwab has indicated it intends to expand the crypto lineup beyond Bitcoin and Ether. The company is also preparing to add spot trading, transfers and custody capabilities to its independent advisor platform, with a target of mid-2027. An equity stake in Paxos further ties the brokerage to the underlying infrastructure.

Clients already familiar with Schwab’s account structure can now choose between direct ownership of Bitcoin and Ether or continued use of exchange-traded products and other investment vehicles without leaving the firm’s ecosystem. The transfers pilot currently under way will determine when external crypto holdings can move into or out of Schwab accounts.