Bitcoin and ether are open for trading at Charles Schwab, which charges 75 basis points on each trade for clients who qualify. Schwab’s own disclosure says the coins are not protected by SIPC, the federal backstop for failed brokerages. The company says its crypto products are offered by Charles Schwab Premier Bank, SSB, and describes the coins as not securities.
Schwab Crypto began rolling out in May 2026, according to the company’s August 27 announcement, and already offers bitcoin and ethereum trading. The release says accounts are available in every U.S. state except New York and Louisiana, are not offered in U.S. territories, and that “not all clients will qualify.”
For a retiree with a Schwab brokerage account, the question is whether the coins deserve a place in the portfolio when the safety net that covers stocks does not cover them. The answer depends on how much of the account the coins would be and on what else protects the household if their value drops.
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What Schwab itself says is protected
Schwab’s disclosure is direct. Its crypto page states that cryptocurrencies offered by Charles Schwab Premier Bank, SSB “are not protected by SIPC; are not insured by the FDIC; are not deposits; and may lose value.” The bank is an FDIC member, but the page says the coins themselves do not carry deposit insurance.
The company’s Schwab Crypto page says a Schwab brokerage account is required first, that the crypto account is separate, and that only cryptocurrencies can be traded in it. It adds that the coins are covered by the Schwab Security Guarantee, which applies to unauthorized activity in Schwab accounts. That is protection against theft from an account, not protection against a price decline.
The release warns that bitcoin and ether are highly volatile and describes the risk of total loss of principal invested. It also says Schwab may delay, modify or withdraw support for an announced asset based on market, regulatory, operational or risk developments.
What SIPC covers, and why coins fall outside it
SIPC protects cash and securities at a failed member brokerage. Its coverage page sets the limit at $500,000, including a $250,000 limit for cash, and says it does not protect against a drop in the value of securities.
On crypto, the page is blunt. Digital assets are protected only if they qualify as securities, and SIPC says it does not protect any digital or crypto asset that does not qualify as a security. It cites bitcoin and ether as examples of digital commodities, which sit outside its coverage.
The bank-deposit backstop does not step in either. The FDIC says deposit insurance covers at least $250,000 per depositor, per insured bank, per ownership category, and excludes stocks, bonds, mutual funds, annuities, Treasury securities and cryptocurrency assets.
What 75 basis points costs in dollars
Schwab prices the service at 75 basis points on the dollar value of each trade, which its crypto page expresses as 0.75 percent of trade value with zero spread. The release calls that pricing among the lowest in the industry, though the company’s page also says all crypto trades are subject to a fee and minimum fees apply.
On a $1,000 purchase, 75 basis points is $7.50. On $10,000, it is $75. Selling later triggers the fee again, so a round trip of $10,000 in and out costs about $150 before any change in price.
The fee is a cost that applies on every trade, while the missing SIPC coverage is a risk that applies only if the firm holding the assets fails. A household weighing a small position has to count both, along with the chance that the coins lose value.
Where the account fits at Schwab
Schwab is large, and the crypto option reaches a substantial base. A September 17 company announcement reported 40.1 million active brokerage accounts as of August 31, 2026, and $13.41 trillion in client assets. It scheduled a Fall Business Update webcast for October 15, led by President and Chief Executive Rick Wurster.
The August release says Schwab plans to add solana, avalanche and chainlink in the coming months and more digital assets over time. Joe Vietri, the company’s head of digital assets, said the expansion gives clients more choices to build a digital asset allocation.
Clients can trade crypto side by side with traditional investments on Schwab.com, Schwab Mobile and thinkorswim, and the company offers 24/7 phone or chat support. The release also says Schwab Crypto accounts may be restricted or closed if a client moves to an unsupported jurisdiction.
The protection question for a fixed-income household
For a household living on Social Security and a pension, a loss cannot be made up from paychecks. A coin position that falls in value cannot be rebuilt from paychecks, and SIPC will not make up the difference in a market decline in any case.
The practical step is to separate money that backs up the household budget from money that can take a loss. Anything held in a Schwab Crypto account belongs in the second group, based on what Schwab’s own disclosure says about protection.
Buying crypto at a brokerage with no SIPC cover?
A coin position that loses value leaves a retiree with a smaller cushion and no brokerage backstop, so the rest of the household budget has to carry more weight. Support that many retirees never apply for is the first place to look.
The turn here is from investing risk to household income. The Benefits Checklist scans 11 benefit programs retirees most often miss, lays out the 2026 income limits for each, and includes a 50-state phone directory and a printable application tracker that comes with the download.
Get the Benefits Checklist to line up household support before taking investment risk →
More Financial Reading
- 21 Ways to Stretch a $2,087 Social Security Check
- 15 Places to Find Your Share of the $4.25 Billion States Give Back
- 15 Ways Retirees Are Tapping a Record $14.9 Trillion in Home Equity
This article was produced with AI assistance and edited for accuracy against the sources linked above.
