Schwab Enters Spot Crypto Trading: What 75 Basis Points Really Means for Retail Investors

Charles Schwab, managing $12.22 trillion in client assets, is making a decisive move into spot cryptocurrency trading. The brokerage giant will launch direct Bitcoin and Ether trading for US retail clients in the coming weeks—a significant moment showing how traditional finance continues absorbing crypto into mainstream investment infrastructure.

Here's what matters: Schwab's entering the market through a dedicated crypto account integrated with its existing brokerage platform. That means traders can view and manage Bitcoin and Ethereum alongside stocks on Schwab's web, mobile, and Thinkorswim platforms. Custody lives with Schwab's banking subsidiary, while Paxos (a federally regulated trust company) handles execution. The phased rollout begins with eligible US retail clients, excluding New York and Louisiana residents initially.

The Fee Question

The 75 basis point (0.75%) transaction fee is critical context. Here's how it stacks up:

• •Kraken: 0.25%-0.40% (declining with volume)
• •Coinbase: 0.40%-0.60% (for lower-volume traders)
• •Schwab: 0.75%

Schwab's pricing sits above pure-play crypto exchanges but understandable given what they're offering—integrated portfolio management, institutional-grade custody, and access through a trusted traditional broker. For traders who value consolidation over lowest fees, it's competitive. For fee-sensitive merchants, this creates friction.

Expanding the Crypto Ecosystem

At launch, only Bitcoin and Ether trade through the offering, but Schwab plans adding more cryptocurrencies plus deposits and withdrawal functionality. This matters because it signals confidence in institutional adoption of spot crypto. The firm already hosts roughly 20% of spot crypto exchange-traded products (based on their internal estimates), so this represents natural extension into direct ownership.

The Bigger Picture: TradFi Goes All-In

Schwab's move accelerates a trend we're watching across traditional finance. In April, Morgan Stanley launched a spot Bitcoin ETF (MSBT) that pulled in $30.6 million on day one—eventually reaching $87.6 million in net assets by mid-April. Goldman Sachs simultaneously filed with the SEC for a Bitcoin-linked ETF using options strategies to generate income while limiting volatility.

These aren't isolated experiments. Traditional financial institutions are systematically building crypto infrastructure because client demand is real and regulatory clarity has improved.

The plot twist? Crypto-native companies are moving opposite direction. Coinbase launched equities and ETF trading in December. Kraken added tokenized equity perpetual futures in February. The lines between traditional and crypto markets are blurring.