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Charles Schwab slashes its $25k UK trading platform minimum to $0
Taking on the challengers.
Zero commission trading platforms in the UK just got a new competitor, with US investment broker Charles Schwab overhauling its platform by slashing its entry requirements.
From today Charles Schwab’s minimum investment to open an account is being cut from $25,000 previously to $0.
Meanwhile, its commission for US equity trades is remaining at $0, meaning UK customers only have to pay the FX to convert to Dollar, which they can choose to do with Charles Schwab or another provider.
Bonds and options trading still comes with a cost of either $1 per bond or $0.65 per contract.
“Our new $0 minimum investment opens up our services to all investors,” said Richard Flynn, Charles Schwab’s UK managing director.
“The transaction volume, market capitalisation, and number of listed companies make the US market a unique and attractive option for international investors.
While Charles Schwab isn’t the most well-featured of brokers in the UK, lacking tax wrappers like an ISA, fractional shares and only offering trades in dollars, its offering will likely appeal to US expats.
All of Charles Schwab’s trading and custody takes place in the US, which is useful for both tax reporting and those who are more comfortable trading under US regulations.
“Our new services are designed to help UK retail investors expand their investment options in the US market,” added Flynn.
“We believe our platform provides investors with one of the most affordable and insightful ways to invest in American businesses.”