WellsTrade vs. Schwab Introduction
Charles Schwab and Wells Fargo are two huge financial corporations with many assets and customers. In the world of self-directed brokerage services, Schwab and WellsTrade provide some, but not all, of the essential features that self-directed traders look for.
Commissions
| Broker Fees |
Stock/ETF
Commission |
Mutual Fund
Commission |
Options
Commission |
Maintenance
Fee |
Annual IRA
Fee |
|
Charles Schwab
|
$0
|
$49.95 ($0 to sell)
|
$0.65 per contract
|
$0
|
$0
|
|
Wellstrade
|
$0
|
$35
|
$0.65 per contract
|
$0
|
$0
|
Services
New Account Promotions
Charles Schwab: $0 commissions + satisfaction guarantee at Charles Schwab.
Wellstrade: none right now.
Category #1: Available Securities
Schwab customers can trade options, stocks (including OTC and foreign), bonds, futures, mutual funds, ETFs, and closed-end funds. WellsTrade does not provide futures or foreign stocks, but it does offer everything else.
There are also managed accounts at both brokers, including robo portfolios that trade low-cost ETFs. Schwab’s robo service is free, while Wells Fargo Advisors’ robo product costs 35 basis points a year. Wells Fargo Advisors includes free phone calls with human advisors, whereas Schwab charges $30 monthly for that.
Winner: Schwab
Category #2: Websites
Schwab’s website has an easy-to-use menu at the top, a useful feature given the large amount of content. At the bottom is a trade bar giving real-time data but lacking its own trade form. You’ll find that on a separate page, triggered by the bar. Schwab’s order ticket supports advanced commands, such as OTO (one triggers the other).
One step above this is thinkorswim, Schwab’s browser-based platform, which you open from the Futures page. Although it focuses on futures, it also allows stock and option orders. It has excellent charts and more complex order types, plus solid option spreads.
The WellsTrade site lacks a dedicated browser platform, option spreads, or advanced orders. Still, it does have some helpful features for trading. For instance, charts come with around 35 indicators, 13 drawing tools, and 7 display styles. But the chart can’t stretch across the entire screen, which is a drawback for serious chart users.
WellsTrade’s order form doesn’t match Schwab’s complexity, although you can specify tax lots before selling, which is helpful.
Winner: Schwab
Category #3: Other Software
Schwab’s trading suite doesn’t end with the website. There are two mobile apps. One is thinkorswim Mobile, geared toward futures, and the other is the standard Schwab app, which packs several research tools for both futures and securities. You can listen to podcasts, watch on-demand videos, and check out market reports. The app also has a virtual assistant.
WellsTrade’s mobile program lacks the advanced features found on Schwab’s. You won’t find videos, podcasts, or an AI helper. It does allow you to place orders, which is about all there is to say.
In addition, Schwab has a desktop platform known as thinkorswim. It has numerous resources, including live CNBC, both U.S. and overseas versions, which is quite rare.
Winner: Schwab
Category #4: Margin
Using other people’s money for investments is possible at both brokers. However, it comes with margin interest fees.
Schwab’s margin rates run from 12.575% down to 10.825%. WellsTrade charges between 13.25% and 9.25%.
Only Schwab shows margin details for individual securities on its platform. Its website also offers more thorough info about trading on margin.
Winner: Schwab
Category #5: Extra Services
IRAs: Both brokers have IRAs for self-directed or managed services. WellsTrade, unlike Schwab, levies a $49.95 fee to close an IRA.
Auto Mutual Fund Investing: Both allow recurring mutual fund purchases.
Initial Public Offerings: Only Schwab offers IPO participation.
Fractional Shares: Schwab lets you buy S&P 500 stocks in decimal form.
Extended-hours Trading: Schwab offers pre-market and after-hours sessions. Wells Fargo only offers 2.5 hours of after-hours trading.
Cash Management Tools: Both firms use their partner FDIC-insured banks to provide strong banking services.
DRIP: Either broker lets you reinvest dividends.
Winner: Schwab
Recommendations
Beginning Investors: A managed account at either firm, preferably with some access to a human advisor.
Equity Trading: Schwab with thinkorswim.
Long-Term Investors and Retirement Savers: Schwab has a more robust website with planning resources, so we recommend Schwab.
Mutual Fund Trading: Schwab has 6,037 funds, while WellsTrade has fewer than half as many, plus Schwab’s website has better fund tools.
Small Accounts: There are no ongoing fees or minimums for self-directed accounts at either firm. Schwab’s robo service needs $5,000, Wells Fargo’s robo requires $500.
New Account Promotions
Charles Schwab: $0 commissions + satisfaction guarantee at Charles Schwab.
Wellstrade: none right now.
Charles Schwab vs Wells Fargo: Which is Better?
Neither broker offers everything, but Schwab stands out overall as the stronger choice.
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Updated on 1/26/2025.
Chad Morris is a financial writer with more than 20 years experience
as both an English teacher and an avid trader. When he isn’t writing
expert content for Brokerage-Review.com, Chad can usually be found
managing his portfolio or building a new home computer.
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