Wells Fargo vs Charles Schwab in 2024
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Introduction
Both WellsTrade and Charles Schwab are connected to FDIC-insured banks, but that’s where their similarities end. The brokerage services they offer differ significantly. We're going to compare these two firms to see which one stands out—Charles Schwab or WellsTrade?
Research & Education
Schwab provides a wide range of educational resources. Their website includes many videos and articles on key investing topics like retirement planning and taxation. They also offer free third-party equity reports. Market news from various sources is available, and effective screeners can help you find the securities you need.
The WellsTrade site also has market news, but the selection is smaller. They offer screeners for stocks, bonds, and mutual funds, though the WellsTrade fund screener has fewer search options than Schwab's. Market commentary and Morningstar equity reports (with a premium discount) can be downloaded in PDF format for free.
Schwab offers a better selection in this category.
Visit Websites
Charles Schwab: Get $0 commissions + satisfaction guarantee at Charles Schwab.
Wells Fargo:
Open a Wells Fargo investment account.
Trading Tools
The Schwab website is packed with information, yet it's still easy to navigate. There’s a handy trade bar at the bottom of the browsing window that displays essential trade information for stocks and ETFs. A small pop-up graph appears when you click ‘Chart,’ and clicking ‘Trade’ opens a separate page where you can place an order. For those who want more advanced features, Schwab offers Thinkorswim, a robust desktop platform with no access requirements.
The WellsTrade site is more basic, making it easy to navigate. However, it lacks a trading bar and an advanced trading platform. The website does have decent charting tools, including technical studies and multiple chart styles, though charts can’t be displayed full-screen.
Schwab takes the lead in this category.
Mobile Apps
Schwab’s mobile app is available on Apple, mobile web, Kindle Fire, and Android devices. It includes useful features like check deposit and bill pay. Live streaming of financial news is also available. Schwab even offers a platform for Apple Watch.
WellsTrade’s app is available on Android and Apple devices, but it doesn’t support Amazon devices or Apple Watch. The app includes basic charting tools and option chains and allows for mutual fund trades.
Once again, Schwab comes out on top.
Commissions, Fees, and Account Requirements
Schwab charges $0 for ETF and stock trades, and options trades cost 65¢ per contract. Placing an order over the phone with a live representative costs $25. New issues of bonds and CDs are priced with a markup and markdown. Secondary issues cost $1 per bond, with a $10 minimum per order and a $250 maximum. A broker-assisted bond order costs an additional $25.
WellsTrade clients also pay $0 for stock and ETF trades, and derivatives cost 65¢ per contract. Most fixed-income products are priced on a markup/markdown basis.
Schwab requires a $1,000 deposit to open a brokerage account, with no ongoing fees for the account.
WellsTrade has no minimum deposit requirement to open an account.
Overall, Schwab has the better pricing structure.
Mutual Funds and ETFs
Schwab’s mutual fund screener lists over 6,500 products available for purchase, with more than 4,000 OneSource funds that carry no load and no transaction fee. If a fund does have a transaction fee, it’s $49.95 on the buy side only. Schwab charges a short-term redemption fee of $49.95 if an NTF fund is sold within 90 days.
WellsTrade’s screener shows nearly 10,000 funds open to new investors, with over 2,500 having no transaction fee and no load. Some of these funds are Wells Fargo products. The broker’s transaction fee is $35, applied to both the buy and sell sides. There’s no short-term redemption fee.
WellsTrade has some advantages here, so this category is a draw.
Cash Management
WellsTrade is owned by Wells Fargo, one of the largest banks in the U.S., but the brokerage doesn’t offer strong banking options. A securities account doesn’t automatically come with cash management tools. Checks and a debit card can be added upon request, but there’s a $100 annual fee.
Schwab also has an FDIC-insured bank, though it’s smaller than Wells Fargo. However, Schwab offers more features. A Schwab checking account includes a Visa debit card and free checks, with all ATM fees reimbursed. There’s no annual fee for a Schwab Bank account.
Schwab is the better option for cash management.
Visit Websites
Charles Schwab: Get $0 commissions + satisfaction guarantee at Charles Schwab.
Wells Fargo:
Open a Wells Fargo investment account.
Schwab vs Wells Fargo: Which is Better?
Charles Schwab came out on top in five categories, while Wells Fargo didn’t win any, with one category ending in a tie. Schwab is the clear winner. However, WellsTrade could be a good choice for mutual fund investors.
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Updated on 8/23/2024.
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