(broker review) - Schwab instead of selling itself as a low cost provider of investment services promotes itself as a one stop shop for all levels of traders and investors. Using their site and the functions are intuitive and easy to understand regardless of your investment expertise. In fact they have a platform for every type of investor making it easier for customers to be comfortable with the company in the face of higher pricing. That said, Schwab is not a discount broker and unless your account tops $100,000 you will be paying fees that seem expensive in comparison to the discount brokerage firms. As far as execution Schwab guarantees to be as good as its fastest competitor. At this point that brokerage firm is Fidelity which also promises to execute orders within one second.

The commission structures at Schwab are some of the more complicated to calculate. Fees are based on either volume or account values. Additional add- on services are also included at various costs. For example if you make less than 120 trades per year or your account is less than $1 million than internet trades will cost you about $12.95 plus $0.15 per share for trades greater than 1,000 shares. However, using their voice system or one of their brokers to facilitate a trade will cost you an additional $5 or $25 respectively. Not until your trade more than 120 times per year or your account tops $1 million will your trading costs begin to approximate those of the low cost providers.

Customer support is an obvious Schwab competitive advantage. Although its fee structure may reflect account size, its relationships with customers does not. All customers are treated equally and given the same amount of attention. Schwab representatives are available almost immediately on the 24 hour phone and online support and are available to answer questions or to help complete paperwork. New traders or people not accustomed to trading often find this firm much less intimidating than some of the other volume brokers. In fact, Schwab provides very robust paper trading module that allows both novice and experience traders to try new trades and back test strategies.

Unlike many of the online brokers, Schwab does provide some value in the market research it provides to customers. Their analysis tools are also very well designed and available to any customer that wants to use them. Schwab services are broken down into three basic segments, Schwab.com, Streetsmart.com, and Streetsmart Pro. Each one of these platforms is designed for different levels of trading expertise. Each provides customization and a different level of analysis and tools to match a customer's trading proficiency.

Despite their higher price point, Schwab is better suited for the beginner and intermediate traders that will appreciate the research and analysis tools available despite the cost. Advanced traders, especially those with external charting and quoting tools might be better served by a lower cost provider.

Broker Reviews by Better-Trades.com