Charles Schwab does not offer direct cryptocurrency trading through its main brokerage platform
Charles Schwab does not let you buy or sell Bitcoin, Ethereum, or other cryptocurrencies directly in your Schwab brokerage account. If you want to own crypto as an investment, you cannot do it through Schwab's standard trading interface the way you would buy stocks or ETFs.
However, Schwab has created limited pathways to crypto exposure. The company offers crypto-focused ETFs — funds that track cryptocurrency prices or hold crypto assets — which you can buy and sell like any other fund in your account. Schwab also owns TDAmeritrade, which previously offered crypto trading, though that platform is being consolidated into Schwab's main system.
The distinction matters because it changes what you can actually do. You can own crypto indirectly through an ETF, but you cannot hold the cryptocurrency itself in a Schwab account, and you cannot trade it on Schwab's platform.
Key Takeaways
- Schwab does not offer direct cryptocurrency buying or selling — you cannot trade Bitcoin or Ethereum through your Schwab account.
- You can gain crypto exposure by purchasing cryptocurrency ETFs through Schwab, which track or hold digital assets.
- If you want to own actual cryptocurrency, you will need to use a separate crypto exchange like Coinbase or Kraken outside of Schwab.
- Schwab's crypto ETF options include spot Bitcoin ETFs and Ethereum ETFs that launched after regulatory approval in 2023 and 2024.
How to get crypto exposure through Schwab ETFs
If you want cryptocurrency exposure within your Schwab account, the practical route is buying a spot crypto ETF. These are funds that hold actual Bitcoin or Ethereum and trade on regular stock exchanges. You search for them in Schwab's fund screener, place an order, and own them the same way you own any other fund.
Spot Bitcoin ETFs became available to Schwab customers in early 2024, after the SEC approved them. Examples include the iShares Bitcoin Trust (ticker IBIT) and the Fidelity Wise Origin Bitcoin Mini Trust (FBTC). Spot Ethereum ETFs followed later that year. These funds hold the actual cryptocurrency, so their price tracks the market price of Bitcoin or Ethereum directly.
The advantage is simplicity: you trade them during market hours like any stock, they settle in your account, and they work within retirement accounts like IRAs and 401(k)s. The disadvantage is that you do not own the cryptocurrency itself — you own a fund that owns it — and you pay an annual expense ratio, which is typically between 0.2% and 0.25% per year.
Why Schwab does not offer direct crypto trading
Direct cryptocurrency trading requires infrastructure that traditional brokerages have not built. Crypto exchanges operate differently from stock exchanges — they run 24/7, handle digital wallets, manage private keys, and face different regulatory requirements than stock brokers. Building that system from scratch is expensive and carries custody and security risks that Schwab has chosen not to take on.
Regulatory uncertainty also plays a role. The SEC and other agencies have not created a clear framework for how traditional brokerages should handle crypto custody and trading. Schwab has taken a cautious approach, offering crypto exposure through regulated ETFs rather than building its own trading platform.
This is different from some competitors. Fidelity offers direct Bitcoin and Ethereum trading for some customers, and Robinhood has offered crypto trading for years. But Schwab's strategy has been to wait for regulatory clarity and let ETFs serve as the bridge between traditional investing and crypto.
If you want to own actual cryptocurrency
If you want to hold Bitcoin, Ethereum, or other cryptocurrencies directly — not through an ETF — you will need to open an account at a separate crypto exchange. Popular options include Coinbase, Kraken, Gemini, and Crypto.com. These platforms let you buy and sell crypto, hold it in a digital wallet, and transfer it to other wallets or exchanges.
The trade-off is that you are moving money outside your Schwab account and using a different platform with different security practices. Crypto exchanges are not FDIC-insured the way bank deposits are, though many hold insurance policies for customer assets. You also cannot hold crypto directly in a retirement account through most exchanges, which limits tax-advantaged investing.
Some people use both: they hold crypto ETFs in their Schwab IRA for tax-sheltered growth, and they hold actual crypto on a separate exchange for trading or long-term storage. This approach lets you use Schwab's retirement account structure while still owning the underlying asset.
What changed with TDAmeritrade's crypto offering
TDAmeritrade, which Schwab acquired in 2020, previously offered cryptocurrency trading through a partnership with Gemini. That service let TDAmeritrade customers buy and sell Bitcoin and Ethereum directly. However, Schwab has been consolidating TDAmeritrade's platform into its own system, and the crypto trading feature was not carried over.
If you had a TDAmeritrade account with crypto holdings, Schwab gave you options to transfer your crypto to an external wallet or sell it. The company did not force liquidation, but it did not integrate crypto trading into the main Schwab platform either. This reflects Schwab's decision to focus on ETFs as the primary way customers access crypto through the company.
Comparing your options: ETF versus direct ownership
| Feature | Crypto ETF through Schwab | Direct crypto on exchange |
|---|---|---|
| Buy and sell in your Schwab account | Yes | No — separate account needed |
| Use in retirement accounts (IRA, 401k) | Yes | No — most exchanges do not support this |
| Own the actual cryptocurrency | No — you own a fund | Yes |
| Trade 24/7 | No — market hours only | Yes |
| Annual fee (expense ratio) | 0.2% to 0.25% typically | Trading fees only, no annual fee |
| FDIC or similar insurance | Schwab account protection applies | Varies by exchange |
Frequently Asked Questions
Can I buy Bitcoin or Ethereum directly through my Schwab account?
No. Schwab does not offer direct cryptocurrency trading. You can buy crypto ETFs that track Bitcoin or Ethereum prices, but you cannot purchase the cryptocurrency itself through Schwab. To own actual crypto, you need a separate account at a crypto exchange like Coinbase or Kraken.
Are crypto ETFs available in retirement accounts at Schwab?
Yes. Spot Bitcoin and Ethereum ETFs can be held in IRAs, Roth IRAs, and other retirement accounts at Schwab. This lets you gain crypto exposure with tax-advantaged growth, though you own the ETF, not the cryptocurrency directly.
What happened to crypto trading on TDAmeritrade?
TDAmeritrade offered crypto trading through Gemini, but that feature was discontinued as Schwab consolidated the platform. Customers were given time to transfer or sell their holdings. Schwab chose not to integrate crypto trading into its main platform.
How much does it cost to own a crypto ETF at Schwab?
Crypto ETFs charge an annual expense ratio, typically between 0.2% and 0.25% per year. This is deducted automatically from the fund's value. You also pay Schwab's standard trading commissions if any apply, though most ETF trades at Schwab are commission-free.
Is my crypto safer in a Schwab ETF or on a crypto exchange?
A Schwab ETF is held in your Schwab account, which has SIPC protection up to $500,000. A crypto exchange holds your assets under that exchange's insurance and security practices, which vary widely. Neither is inherently safer — it depends on the exchange and your own security practices.