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Schwab vs Public for investors and IRA savers in 2026

Nicolas StrautBy Nicolas StrautLast updated 7 min read
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Key takeaways

  • IRAs held $19.9 trillion in assets at the end of the second quarter of 2026, up 9.2% from the first quarter.1
  • When choosing between Schwab and Public, start with where your idle cash and your IRA contributions will sit before you compare trading features.
  • Public is the stronger fit for a saver who wants a 1% IRA match and a published cash rate in one app, while Schwab is the stronger fit for an investor who wants mutual funds, more kinds of IRA, and a robo advisor with no advisory fee.
In this article

Schwab vs Public splits on what each broker pays you, because Public pays a 1% match on IRA contributions, while Schwab's pricing page lists no match at all.2 Schwab offers thousands of mutual funds that carry no transaction fee, five kinds of IRA, and a robo advisor that charges no advisory fee. This guide compares Schwab and Public across trading costs, the IRA match, cash and bonds, and fund choice.

Schwab vs Public at a glance

Schwab and Public both charge $0 for stock and ETF trades, so the table starts there and moves to where they differ. Schwab's figures were read on schwab.com on October 6, 2026, and Public's on its IRA page, Reserve page, and fee schedule (updated September 23, 2026) the same day.

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Charles SchwabPublic
Stock and ETF commissions$0 online$0
Options$0 base + $0.65 per contract$0 per contract on stock and ETF options, plus a $0.06 to $0.18 rebate
IRA matchNone listed1% on annual contributions
IRA typesTraditional, Roth, rollover, inherited, custodialTraditional and Roth
What you can buyStocks, ETFs, options, OneSource mutual funds, bondsStocks, ETFs, options, crypto, bonds, Treasuries
Bonds$1 per bond ($10 minimum, $250 maximum)Corporate, municipal, and Treasury bonds
Cash yieldNot confirmed on schwab.com3.30% APY, no fees; 3.75% with Reserve
Robo advisorIntelligent Portfolios, $5,000 minimum, no advisory feeNot covered here
SubscriptionNonePublic Reserve, $20 a month (free tier is Public Core)
Fee to transfer outNot confirmed on schwab.com$100 outgoing ACAT

What is Charles Schwab?

Charles Schwab is a full-service broker that charges $0 online commission on listed stocks and ETFs, sets no account or trade minimums, and sells thousands of mutual funds with no transaction fee through its OneSource list. Its IRA lineup runs to five account types, and its robo advisor needs $5,000 to start.

Schwab is a Tweed partner. The Charles Schwab review covers Schwab's research, support, and platform. This page focuses on price.

What is Public?

Public is an app-first broker that charges $0 commission on stocks, ETFs, and options under its fee schedule updated September 23, 2026. Public doesn't take payment for order flow on standard equity trades. Public adds bonds, Treasuries, and a high-yield cash account to the same app.

Public is also a Tweed partner. The Public review covers its safety, its paid tier, and how it makes money without commissions.

Schwab vs Public features compared

Each section below opens with the broker that comes out ahead. The last section covers figures that neither broker's site let Tweed confirm.

The IRA match

Public wins for an IRA saver, because it pays a 1% match on annual Traditional and Roth contributions, while Schwab lists none. In Public's words as of October 6, 2026, the offer is "Earn a 1% match on your annual contributions," with no end date stated. Since September 14, 2026, an uncapped 1% match has also applied to IRA transfers and ACATS transfers into taxable accounts. Matched money has to stay in the account for five years or Public charges an early removal fee, so treat the match as money you earn over five years, not money you can withdraw right away.

Options trading

Public wins on price for an options trader, because it charges no options commission, while Schwab charges $0.65 per contract.3 Public also charges $0 per contract on stock and ETF options and, according to its fee schedule, pays $0.06 to $0.18 per contract back through its Options Rebate Program. The rebate widens the cost gap with every trade.

Cash yield

Public wins on idle cash. It showed 3.30% APY with no fees on October 6, 2026, or 3.75% with its $20-a-month Reserve plan, while Schwab's sweep yield wasn't confirmed on schwab.com for this update. Public's rate floats with short-term rates, so treat it as a snapshot, not a promise.

Bonds and Treasuries

Schwab and Public both sell bonds, and neither wins outright on what Tweed could confirm. Schwab charges $1 per bond on secondary bonds with a $10 minimum per trade, and Public sells corporate bonds, municipal bonds, and Treasuries directly in the app. Public showed Treasuries at 4.31% on October 6, 2026. Public's bond pricing wasn't part of this check, so Tweed can't compare the two brokers' bond costs side by side.

Mutual funds and managed accounts

Schwab wins for a fund investor or a hands-off investor, because it sells thousands of mutual funds with no transaction fee through OneSource and runs Intelligent Portfolios with no advisory fee once you meet the $5,000 minimum.4 Public's list of what you can trade, which runs from stocks and ETFs to crypto and Treasuries, doesn't include mutual funds. Schwab's advantage is the range of what you can buy.

Margin rates and transfer fees

Public charges $100 for an outgoing ACAT, according to its fee schedule. Schwab's transfer-out fee and both brokers' margin rates weren't confirmed on their own pages for this update, so Tweed doesn't publish them. Ask Schwab for its transfer-out fee before you move an account.

Schwab vs Public fees for three kinds of investor

On price, Schwab vs Public fees mostly favor Public, while Schwab's advantage is range. Here is a year priced for three investors. Matches, commissions, and published cash rates are modeled; returns and fund expense ratios are not.

An IRA saver maxing the 2026 limit

An IRA saver who maxes the account every year earns $375 from Public over five years and nothing from Schwab, provided the matched money stays in the account. Public Reserve's 4% match costs $240 a year. On the match alone, Reserve beats the free 1% only above $8,000 of contributions, which only savers 50 and older can reach.

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Maxing a 2026 IRASchwabPublic Core, 1%Public Reserve, 4%
Match, under age 50 ($7,500)$0$75$300
Match, age 50 and up ($8,600)$0$86$344
Subscription per year$0$0$240
Net per year, under age 50$0$75$60
Net per year, age 50 and up$0$86$104
Net over five years, under age 50$0$375$300

An options trader

An options trader pays no commission at Public. Public's rebate program would widen the gap further, but this page doesn't model the rebate.

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Options contracts per yearSchwabPublic
100$65$0
500$325$0
1,000$650$0

A saver holding idle cash

The table below shows what a saver who parks cash for a year earns at Public, assuming Public's rates hold all year, which they may not. Schwab's yield wasn't confirmed, so read Schwab's rate on schwab.com and multiply it by your balance. Reserve's $240 fee is more than its extra interest at every balance here.

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Idle cash held for a yearPublic Core at 3.30% APYPublic Reserve at 3.75%, minus $240Schwab
$5,000$165−$52.50Not confirmed
$10,000$330$135Not confirmed
$25,000$825$697.50Not confirmed

Schwab vs Public for a Roth IRA

Schwab vs Public for a Roth IRA comes down to the match vs range: Public pays 1% on every contribution, while Schwab offers more kinds of IRA and far more funds to hold inside an IRA. Schwab's IRA page lists $0 opening fees and $0 maintenance fees.5

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Roth IRASchwabPublic
Contribution matchNone listed1%
IRA typesTraditional, Roth, rollover, inherited, custodialTraditional and Roth
Mutual funds inside the IRAThousands of OneSource fundsNot on Public's list of what you can trade
Managed RothIntelligent Portfolios, $5,000 minimum, no advisory feeNot covered here

The 2026 IRA limit of $7,500 is the same at both brokers, so the match is the only part of the contribution that changes with your choice. TheSchwab IRA review covers Schwab's accounts in full, andRoth vs traditional IRA covers which kind to open first.

Should you choose Schwab or Public?

Should you choose Schwab or Public? The answer depends on whether you want to be paid for holding cash and contributing or want the widest choice of funds and accounts. If Fidelity is your third option, Schwab vs Fidelity andFidelity vs Public finish the comparison.

Choose Schwab if

  • You want mutual funds or a robo portfolio with no advisory fee
  • You need a rollover, inherited, or custodial IRA, or want every account in one place

Choose Public if

  • You want a 1% match on IRA contributions without paying for a subscription
  • You trade options and want no contract commission
  • You keep cash in the brokerage and want a published yield, with bonds and Treasuries in the same app

Check your own numbers before you open an account

How much a 1% match and a cash rate pay you depends on your balance. Run theTweed retirement calculator with your real contribution, once with the match and once without. Then see how both brokers compare with other brokers in the best brokerage accountsroundup. If Public fits, you can open a Public account. If Schwab fits, you can open a Charles Schwab account.

Frequently asked questions about Schwab vs Public

What brokerage is better than Schwab?

No brokerage is better than Schwab for everyone, because the better one depends on what you buy. Public and Robinhood pay an IRA match, reaching 4% with Public's $20-a-month Reserve plan and 3% with Robinhood Gold as of October 6, 2026. Fidelity charges $0 to transfer an account out and offers index funds with a 0% expense ratio.

What is the downside to Charles Schwab?

The downside to Charles Schwab is cost on less common trades, not on everyday stock trades. Broker-assisted trades add $25 each, and funds outside the OneSource list cost up to $74.95 a purchase. Schwab also pays nothing on IRA contributions. That matters to a saver who contributes every year.

Is Public a good brokerage?

Yes, Public is a good brokerage for an investor who wants low trading costs, bonds, and a cash account in one app. Its iPhone app held a 4.7 out of 5 rating from about 85,000 App Store ratings in August 2026. Public offers fewer account types and no mutual funds, so a fund investor may outgrow Public.

Is Public app safe?

Yes, the Public app is safe if the broker fails. Public says SIPC "protects up to $500,000 of the securities in your accounts, including $250,000 in claims for cash." Crypto, held through Zero Hash, carries neither SIPC nor FDIC protection. No protection covers market losses.

Is Public.com FDIC insured?

No, Public.com's brokerage account itself is not FDIC insured, since securities fall under SIPC instead. Public's high-yield cash account is different: cash sweeps to partner banks, each covered up to $250,000, for up to $5 million in aggregate FDIC coverage, according to Public's help center in August 2026.

Can high earners open a Roth IRA at Schwab or Public?

No, high earners can't contribute directly to a Roth IRA at Schwab or Public above the IRS income limit, which applies at every broker. For 2026 the contribution phases out between $153,000 and $168,000 for single filers and between $242,000 and $252,000 for joint filers. A traditional IRA has no income cap.

Is Fidelity better than Schwab or Public?

Fidelity is not better than Schwab or Public across the board, and it is closer to Schwab. Like Schwab, Fidelity pays no IRA match and charges per options contract. Fidelity's advantage is a published $0 fee to transfer an account out, vs $100 at Public. That matters if you expect to consolidate accounts later.

Sources

  1. https://www.ici.org/statistical-report/ret_26_q2
  2. https://public.com/ira
  3. https://www.schwab.com/pricing
  4. https://www.schwab.com/intelligent-portfolios
  5. https://www.schwab.com/ira
Nicolas Straut
Nicolas Straut

Personal finance writer, former Forbes contributor and This Week in Fintech writer. He isn't a financial advisor or a CPA.

nicstraut.com

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