Charles Schwab Enters Crypto Game With Fees That Would Make a DeFi Degener Think Twice

Charles Schwab, the $12 trillion brokerage and commercial banking giant, has kicked off a phased rollout for its spot crypto trading division, creatively named Schwab Crypto, with the platform expected to go live in the coming weeks. Retail investors will get direct access to trade Bitcoin and Ethereum, though those expecting the full crypto buffet will be disappointed—only these two assets will be available at launch, with additional cryptocurrencies penciled in for future inclusion. Users can view both their crypto holdings and traditional assets like stocks and ETFs all in one unified account interface, because apparently even your crypto portfolio deserves a 401(k) view.

Joe Vietri, head of digital assets at Charles Schwab, said the move aims to position the firm as the preferred destination for retail investors seeking to incorporate digital assets into their portfolios. "Our goal is to be the destination of choice for retail investors who want to incorporate digital assets into their portfolios with confidence," Vietri said. The launch follows renewed institutional interest in the crypto space this year, with major players including Morgan Stanley, Goldman Sachs, and the NYSE introducing their own crypto offerings—all racing to catch up to the degenerates who never left.

Schwab Crypto will charge users 75 basis points (0.75%) per trade, significantly higher than competing platforms. For comparison, Binance charges approximately 0.1% per trade, meaning Schwab's fees are roughly 7.5 times more expensive. Bloomberg analyst Eric Balchunas described the offering as a "tough sell" from a cost perspective, noting that even spot Bitcoin ETFs charge considerably less at around 2 basis points. "If you buy BTC one time and one time only and plan to hold 5+ years, then direct is cheaper," Balchunas observed. "Otherwise, ETFs for the win all day long." At these fees, even your Coinbase subscription might start looking reasonable.

Spot Bitcoin ETFs recorded $26 million in daily net inflows on Thursday, marking the third consecutive day of positive inflows. At the time of reporting, Bitcoin was trading above $75,000.