Overview
- Charles Schwab began a phased retail rollout of spot bitcoin and ether trading on May 13, 2026, charging a flat 75 basis points per trade with assets custodied at Charles Schwab Premier Bank and Paxos providing sub‑custody and execution.
- Schwab said the program has progressed as planned, has started a crypto transfers pilot, took an equity stake in Paxos, and set a mid‑2027 target to add trading, transfers and custody to its advisor platform.
- The initial product is deliberately limited: it supports only Bitcoin and Ether, launched without customer deposits or withdrawals, excludes New York and Louisiana, and noted no SIPC protection at the start.
- Broker competition and lower broker fees are compressing exchange take rates, with Morgan Stanley’s E*Trade pricing at 50 basis points and Fidelity charging roughly a 1% spread, a shift that has already pressured native exchanges’ transaction revenue.
- The change puts ETFs and direct coins under one login at Schwab, which may prompt customers to consolidate holdings and shift retail volume away from standalone apps as the firm expands transfers, custody services and explores stablecoin options.