Charles Schwab, managing over $12 trillion in client assets, launched direct spot Bitcoin and Ethereum trading for retail clients on May 13. The new platform, Schwab Crypto, charges a 0.75% fee and is powered by Paxos and Schwab Premier Bank.
This marks a structural shift, allowing millions of investors to buy crypto alongside traditional assets like index funds. Schwab's fee undercuts Fidelity's 1% but is higher than E*TRADE's 0.50%, following a classic Goldilocks strategy. For a $10,000 Bitcoin trade, Schwab clients pay $75 versus $100 at Fidelity.
The timing is strategic, launching as global retail crypto activity declined 11% in Q1 2026 to $979 billion. Bitcoin trades near $81,000 with a market cap of $1.615 trillion; Ethereum's market cap is $286 billion. The two represent over 60% of the crypto market.
Convenience is key: clients no longer need separate accounts on Coinbase or Kraken. This integration could boost adoption, especially among conservative investors. However, fee compression may follow if competitors cut rates, and the net new capital inflow remains uncertain.