Charles Schwab Roth & Traditional IRA
📍 Available in: US
★★★★★ 4.8 / 5.0
Charles Schwab’s Roth and Traditional IRAs combine $0 minimums and ultra-low-cost index mutual funds—such as the Schwab S&P 500 Index Fund (SWPPX) at a 0.02% expense ratio—with full access to the institutional thinkorswim® desktop and mobile trading suite, allowing experienced investors to sell covered calls and cash-secured puts inside a tax-free Roth wrapper.
Key Facts at a Glance
| Cost / Fee Structure | $0 Account Fee |
| APR / Rate | 0.02% Expense Ratio on SWPPX S&P 500 Fund |
| Coverage / Loan Limit | $0 Minimum Deposit |
| Credit / Eligibility | Full thinkorswim® IRA Options Support |
Pros & Cons
✓ Pros
- ✓SWPPX charges a tiny 0.02% expense ratio ($2 per $10,000 invested) with no $3,000 minimum like Vanguard
- ✓Industry-best thinkorswim® platform for managing tax-free options strategies in an IRA
- ✓Outstanding live customer service and estate planning support
✕ Cons
- ✕Uninvested cash in the default sweep earns only ~0.45% (must manually buy SWVXX money market fund)
- ✕Fractional shares ("Schwab Stock Slices") are limited to S&P 500 companies only, not ETFs
Key Features
0.02% Expense Ratio on Schwab S&P 500 Index Fund (SWPPX) with $1 MinFull Access to thinkorswim® Platform for Covered Calls & Puts in IRAs24/7 Live Broker Support and 300+ Physical U.S. BranchesSeamless Pairing with Schwab High Yield Investor Checking