Is Charles Schwab safe?

Safety summary

The available evidence supports a favourable assessment. Positive factors include a tier-one licence, segregated client money, a compensation scheme (SIPC up to $500,000, including $250,000 cash sublimit; excess SIPC insurance also maintained), audited accounts (Deloitte & Touche LLP) and 55 years of operating history. Risk factors include no negative balance protection. Regulation can improve oversight and complaint options, but it does not prevent trading losses or guarantee that every dispute will be resolved.

Client money is held separately from the firm's own money, at Customer assets held under US SEC/FINRA customer-protection and custody requirements. That separation is what makes your balance recoverable if the company fails, rather than part of the pool its creditors divide up.

There is no negative balance protection. In a fast market a position can gap straight through your stop, and without this the resulting debt is legally yours - you can lose more than you deposited.

Covered by SIPC up to $500,000, including $250,000 cash sublimit; excess SIPC insurance also maintained, which pays eligible clients up to its limit if the firm fails owing client money.

Regulatory coverage

Charles Schwab is connected with 3 recorded licences: SEC (tier one), FINRA (tier one) and CFTC/NFA (tier one).

View every licence

Client protections

Protections may include segregated client money and a compensation scheme (SIPC up to $500,000, including $250,000 cash sublimit; excess SIPC insurance also maintained). They apply only where the account and client are eligible under the relevant entity and jurisdiction.

Official warnings

Licence concerns

Website verification

The recorded broker website is schwab.com. Verify the domain through an official regulator register where possible and do not rely on links received through unsolicited messages.

Company history

Charles Schwab was established in 1971. No material change has yet been recorded on this profile.

Complaints and responses

View the complaints tab

The available evidence supports a favourable risk assessment for Charles Schwab. This assessment can change if licences, entities, warnings or broker operations change.