Schwab Intelligent Portfolios Fees
The straight Charles Schwab Intelligent Portfolios robo program is free. There is a $5,000 minimum investment amount. The hybrid program is not free. It costs $30 per month and has a $300 one-time planning fee. It also has a $25,000 minimum deposit requirement. In either program, there are no commissions on trades.
Free Charles Schwab Intelligent Portfolios
Charles Schwab Robo Advisor Overview
We all know that we should be saving for a rainy day fund, college or retirement — and most of us are. But for some, investing can be a daunting, intimidating and time-consuming experience. How do you decide what, how many and when to buy? With some firms regularly charging fees based on a percentage of assets they oversee, plus a percentage of any earnings, not everyone can afford hiring financial planners to actively manage their investments. To make things more complicated, global volatility is up and big market swings can make even the most seasoned investors uneasy. Do you buy or sell? It might be tempting to bury your head in the sand, but luckily investors have options to help show them the way.
Say Hello to Schwab
Charles Schwab is no stranger to the investment world. The company broke ground years ago when it broadly opened trading to retailer investors with fees
much lower than traditional brokers. The company already offered a suite of financial services to serve every conceivable need, but not to be outdone
by its traditional and up and coming competitors, Schwab debuted its own robo-advising service dubbed Schwab Intelligent Portfolios in March 2015.
Schwab’s service was not the first kid on the block. Other robo-advising services like Betterment
and Wealthfront were already on the market, trying to cater to millennials and other young professionals who want to invest but may not have the time
and expertise to do so. But there are some key differences between current robo-advising services. The number of investment options available can be
overwhelming, but investors can reap big gains by doing their research. This review can help point you in the right direction.
How it Works
Many of these automated investing services seek to provide sound investment advice, cheaply and effectively, using sophisticated, automated algorithms to manage your wealth without the use of human financial planners. Schwab’s Intelligent Portfolios aims to do just that by building, monitoring and rebalancing your portfolio all on its own.
Schwab asks investors twelve questions about their goals, time horizons and appetite for risk. Based on investors’ answers and financial goals, Schwab will suggest an asset allocation chosen from a variety of securities, including stocks, fixed income, real estate, commodities and cash. After building your portfolio, Schwab will also monitor it for you. If your asset allocations stray too far from your target, Schwab will automatically buy or sell securities to bring the allocation back in line.
Schwab’s service offers built-in tools to help investors achieve their objectives. Goal tracking is a neat feature that helps investors project their
future earnings based on contributions and current asset allocations. If you are falling behind, Schwab can suggest a one time contribution that can
put you back on the path to financial victory. Investors with balances over $50,000 are eligible for tax loss harvesting, which can be a valuable
investing tool. Tax loss harvesting is a strategy of selling securities at a loss but using those losses to offset taxes on both gains and income
elsewhere in a portfolio. It may sound like a mouthful, but Schwab offers this option free of charge and best of all, it is automatic!
Opening an Account
Creating a Charles Schwab Intelligent Portfolio is straight forward. All you will need is the $5,000 minimum and the following items:
- Application checklist
- Social Security number
- Driver's license information
- Employer's name and address (if applicable)
- Statement information for funds you want to transfer
Schwab Intelligent Portfolios Account Types
Investors have several different accounts to choose from:
- Individual, Joint Tenant with Rights of Survivorship, Tenants in Common, Community Property or Custodial brokerage accounts
- Revocable Living Trust: Single Trustee, Two Trustees
- Traditional, Roth and Rollover IRAs
To fund your account, you can link an outside checking account, deposit funds at a retail Charles Schwab location or even roll it over from your existing investment accounts.
Schwab Robo Advisor Pros
- Automatic portfolio balancing
- Wide range of available asset classes
- Takes the emotion out of investing
- Tax-loss harvesting with minimum balance
- No upfront service or advisory fees
- Mobile app available
- Lower minimum starting balance
Schwab Robo Advisor Cons
- Cash positions higher than competitors
- No fractional shares
- No options for 529 or 401(k) accounts
*Critics argue that Schwab’s cash allocation, which can range from 6% up to 29.4% of a portfolio’s holdings, is too high compared to some of its rivals.
Schwab responds that its cash positions are defensive in down markets and are meant to provide investors with liquidity.
Charles Schwab Intelligent Portfolios Fees Conclusion
Schwab Intelligent Portfolios provides a solid automated investment service for those who don’t have the time, money or expertise to actively manage
their investments. Charles Schwab is a large, established
company that offers a wide range of asset classes that can satisfy investors, novices and veterans
alike. While the service's pricing structure can seem misleading, it's comparable, if not more favorable, to its rivals and Schwab’s lower minimum
account balance is also a major advantage for those investors just starting out.
Open Charles Schwab Intelligent Portfolios
Visit Schwab Website
Updated on 12/28/2025.
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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