Charles Schwab opened its Schwab Crypto account to all eligible retail clients this week, so its customers can now buy actual bitcoin and ether next to their stocks. The fee is 0.75% on every purchase and every sale.
We ran the numbers on $10,000 of bitcoin. Buying costs $75 and selling later costs another $75, so $150 for the round trip.
The same Schwab account already lets clients trade spot bitcoin ETFs online for $0 commission. BlackRock's IBIT charges 0.25% a year. On $10,000 that is $25 after one year, $75 after three and $150 after six.
Counting fees only and ignoring price moves, the direct coin comes out cheaper only if you hold it for more than six years. What the 0.75% buys is the coin itself, and Schwab has started rolling out transfers to outside wallets. If you only want the price, the ETF costs less for most holding periods.
$BTC
#Bitcoin #Schwab
NFA. DYOR.
We ran the numbers on $10,000 of bitcoin. Buying costs $75 and selling later costs another $75, so $150 for the round trip.
The same Schwab account already lets clients trade spot bitcoin ETFs online for $0 commission. BlackRock's IBIT charges 0.25% a year. On $10,000 that is $25 after one year, $75 after three and $150 after six.
Counting fees only and ignoring price moves, the direct coin comes out cheaper only if you hold it for more than six years. What the 0.75% buys is the coin itself, and Schwab has started rolling out transfers to outside wallets. If you only want the price, the ETF costs less for most holding periods.
$BTC
#Bitcoin #Schwab
NFA. DYOR.