Schwab vs. Public.com: Highlights
• Schwab, but not Public.com, has robo and other advisory accounts.
• Schwab has the better software platforms.
• Only Public offers trading in cryptos and other esoteric assets.
Public.com vs. Schwab Introduction
Before opening your next investment account, you need to check out Public and Schwab. Here are the details on these two brokerage firms:
Public and Charles Schwab Cost
| Broker Fees |
Stock/ETF
Commission |
Mutual Fund
Commission |
Options
Commission |
Maintenance
Fee |
Annual IRA
Fee |
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Charles Schwab
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$0
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$49.95 ($0 to sell)
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$0.65 per contract
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$0
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$0
|
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Public
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$0
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na
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$0 per contract
|
$0
|
$0
|
Public and Charles Schwab Services
| Broker Review |
Cost |
Investment Products |
Trading Tools |
Customer Service |
Research |
Overall Rating |
|
Charles Schwab
|
|
|
|
|
|
|
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Public
|
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|
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Open Account
Charles Schwab: $0 commissions + satisfaction guarantee at Charles Schwab.
Public:
Get $20 of an asset of your choice when you deposit $1,000 at Public.
Available Assets and Accounts
Investors with a Public.com account can buy and sell option contracts, stocks, ETFs, closed-end funds, and alternative assets (such as sports cards and artwork). Bonds are in the works but not yet available. A discrete account can be opened to trade cryptocurrencies. Schwab drops the alternative assets and digital currencies, but adds mutual funds, annuities, forex, and futures contracts.
And this lineup is only for self-directed brokerage accounts. Schwab, but not Public, goes a giant leap further with a large selection of investment-advisory accounts. At the bottom rung is a robo service, and traditional human-managed packages are available as well.
Across self-managed and advisory modes, Schwab offers a lot of tax shelters, including IRAs and trusts. Public only offers the individual taxable account.
Winner: Schwab
Margin
A brokerage account at either firm can be set up as either a cash or margin account. It is possible to make the switch from cash to margin on either website. However, Public does not yet extend margin for the purposes of borrowing or leverage. Margin is simply used to trade with unsettled cash.
Over at Schwab, it’s possible to use margin for leverage and borrowing, and this, of course, is a huge
advantage. Schwab’s interest rates start at 12.825% and bottom out at 10.825%.
Winner: Schwab
Websites
Both broker-dealers in this competition have websites that are mostly easy to use. Schwab’s has a much better equity screener with more search variables. Graphs on the site come with some useful resources, such as drawing tools, comparisons, company events, and lots of plot styles. Stock profiles on the Schwab website have analyst reports in pdf format, which are missing in action on Public.com (Public does have trade recommendations, though).
Another great tool we found at Schwab that we didn’t find at Public is a browser platform. Called thinkorswim, it has some really advanced order types, like OCO (one cancels the other). Simpler trade types such as limit and stop are available at Public.
Another objection we have with Public is in the realm of charting. Schwab’s charting tools are free to use, which isn’t always the case at Public. A Premium subscription is required to access the most advanced graphing tools. Without this subscription, only line format on a small chart is shown.
Winner: Schwab
Mobile Apps
Schwab has two mobile apps, one we will call the main app and the other is a thinkorswim app. The latter platform is for heavy-duty trading. It can submit orders for futures and forex, and it has very advanced charting tools, including hundreds of technical indicators. The main app is designed for account management and security research.
Public investors only get one app, and like its website cousin, it has digital bulletin boards for stocks, and this is certainly one advantage over its competitor here. Profiles also have key stats like dividend yield and Beta. Missing on the app is mobile check deposit and an AI, both of which are on Schwab’s main app.
Winner: Schwab
Desktop Programs
Schwab offers desktop trading to pro-level customers via its thinkorswim platform. Public, on the other hand, has no desktop software at all.
Winner: Schwab
Bonus Services
DRIP: Both firms have a Dividend Reinvestment Plan.
Individual Retirement Accounts: Only at Schwab.
Fully-Paid Stock Lending: Both firms offer it.
Fractional Shares: Public.com offers most securities and all cryptocurrencies in whole dollars. Schwab provides fractional-share trading in the S&P 500 stocks.
Extended Hours: Public offers crypto trading 24/7, while Schwab has 24/5 trading in a short list of ETFs. For other securities, both firms have pre-market and after-hours trading.
Recurring Mutual Fund Purchases: Schwab customers can sign up for autopilot mutual-fund transactions.
IPO Access: Schwab, but not Public, offers it.
Winner: Schwab
Open Account
Charles Schwab: $0 commissions + satisfaction guarantee at Charles Schwab.
Public:
Get $20 of an asset of your choice when you deposit $1,000 at Public.
Recommendations
Retirement Planning & Long-Term Investing: Schwab is the only investment firm in this contest with tax-advantaged accounts, financial planners, annuities, branch locations, and a whole lot more.
Small Accounts: Schwab’s advisory accounts have minimums starting at $5,000, so they won’t work for small accounts. Brokerage accounts at both firms have no minimums.
Frequent Stock Trading: Schwab is head and shoulders above Public.
Mutual Funds: Schwab is the only option.
Beginners: We suggest a robo or traditional advisory account with Schwab. It’s possible to set up the automated service with a human advisor, which would be a good idea for rookies.
Schwab vs Public Verdict
Public.com has some unique investing services, but Schwab delivers the overall better experience.
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Updated on 2/15/2024.
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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