Charles Schwab Launches Spot Bitcoin and Ether Trading for U.S. Retail Clients
Charles Schwab (SCHW) launched Schwab Crypto on May 13, giving eligible U.S. retail clients direct access to spot Bitcoin (BTC) and Ethereum (ETH) trading through the firm’s existing brokerage interface. The platform charges a 0.75% fee per transaction and is available in all U.S. states except New York.
The launch makes Schwab the largest traditional brokerage by assets under management to offer spot cryptocurrency trading directly to retail investors. The move marks a significant shift in how mainstream financial institutions approach digital asset access.
What Schwab Crypto Offers
Schwab Crypto allows clients to buy and sell spot Bitcoin and Ethereum (ETH) alongside their existing stocks, bonds, and ETF holdings within a single account interface.
The 0.75% flat fee per transaction is higher than most dedicated cryptocurrency exchanges but lower than many retail bank-linked crypto products. The service is initially limited to Bitcoin and Ethereum, with no indication of additional assets at launch.
The New York exclusion reflects the state’s BitLicense requirement, the regulatory framework governing cryptocurrency businesses operating in the state.
Companies must obtain a separate license from the New York Department of Financial Services before serving New York residents. Schwab has not publicly stated a timeline for expanding the service to New York.
Also Read: Trump’s IP Enforcement Push Risks Being Drowned Out by Trade Noise
Background
Schwab first signaled its intention to move into spot cryptocurrency trading in late 2024, citing growing client demand and regulatory clarity following the U.S.
Securities and Exchange Commission’s approval of spot Bitcoin ETFs in January 2024. The firm had offered Bitcoin futures-based products and cryptocurrency-related ETFs for years before the direct trading launch.
The approval of spot Bitcoin ETFs by the SEC opened a path for traditional financial institutions to engage more directly with cryptocurrency markets, reducing the regulatory ambiguity that had previously kept major brokerages on the sidelines.
Robinhood (HOOD) and Coinbase (COIN) have long offered spot cryptocurrency trading to retail investors, but neither operates at Schwab’s scale of roughly $10 trillion in client assets. Fidelity Investments launched its own retail cryptocurrency trading platform in 2023.
Schwab’s entry brings a new level of mainstream credibility to spot crypto trading as a standard brokerage product.
Also Read: Billions Network Surges 28% as DeFi Governance Token Posts $299 Million in Daily Volume
Why the Launch Matters for Crypto Markets
The Schwab launch matters for Charles Schwab Bitcoin trading demand because of the sheer size of the firm’s client base. Schwab serves approximately 35 million active brokerage accounts.
Even marginal adoption of the new crypto product could channel meaningful new capital into Bitcoin and Ethereum spot markets. The firm’s clients skew toward long-term, buy-and-hold investors, which analysts believe could provide a steadier source of demand than the speculative retail flows that typically drive cryptocurrency volatility.
The 0.75% fee structure also sets a price signal for the broader brokerage industry.
Traditional finance incumbents entering cryptocurrency trading have historically charged fees well above exchange rates. Schwab’s pricing lands below that ceiling, which could pressure rivals to compete on cost as the market for retail crypto access matures.
Spot trading also differs structurally from ETF exposure.
A client holding a spot Bitcoin position through Schwab Crypto owns the underlying asset directly, rather than shares in a fund. This distinction matters for clients seeking direct asset ownership rather than derivative exposure.
Schwab has not confirmed whether it will offer self-custody options or whether assets will be held by a third-party custodian on clients’ behalf.
Also Read: Bitcoin Holds Above $81,000 as Whale Accumulation Offsets Retail Fear and Inflation Data
What Comes Next
Schwab’s next steps will likely include expanding the asset list beyond Bitcoin and Ethereum and pursuing a New York BitLicense to serve clients in that state. The competitive response from Fidelity, Morgan Stanley, and other large traditional brokerages will shape whether Schwab’s launch triggers a broader race to offer retail spot crypto products.
Regulatory developments in Washington, particularly any movement on the Senate’s stablecoin bill or a comprehensive market structure framework, could also expand or constrain the products Schwab can offer in subsequent quarters.
Read Next: Wall Street Holds Steady as PPI Report Looms After Hot CPI Print
