Why I Left Schwab After 25 Years: A Transparent Look at My Trading Shift

best broker for options trading best options trading platform broker comparison 2025 covered call brokers idle cash schwab is schwab still good mark yegge broker switch options trader broker choice payment for order flow issues retail trading transparency schwab cash yield complaint schwab customer service decline schwab money market issue schwab sweep alternatives schwab trading problems schwab vs tastytrade schwab vs tradestation trade execution quality tradestation for options why i left schwab

After spending more than two decades as a loyal Schwab customer, I recently made the tough decision to move my accounts. Many of you have asked why I left Schwab, and I believe you deserve a clear and honest explanation. This isn't about bashing a company. It's about transparency, evolving trading needs, and choosing what aligns with my values and trading goals.

My History With Schwab

I had been with Schwab for over 25 years. For much of that time, I appreciated their platform, their service, and their approach to retail trading. Even before their acquisition of Thinkorswim (formerly TDAmeritrade), Schwab's tools met the needs of the average trader. But slowly, things began to shift—and not in a good way.

The Turning Point: When Trust Starts to Erode

There wasn't one single moment that drove me away. Rather, it was a series of small but concerning issues that painted a larger picture:

Declining customer service: What used to be swift and friendly became frustrating. Getting approvals, solving issues, or asking questions began to take hours and involved multiple people.
Suspicious trade executions: As an experienced trader, I noticed some market orders and limit orders behaving unusually. It raised a red flag. I started asking questions about trade execution quality, but the answers were vague.
Lack of transparency: Schwab, like many brokers, profits from payment for order flow (PFOF). That’s not inherently bad, but when execution quality starts to suffer, I began to question whether Schwab was putting its profits ahead of my best interest.

The Payment for Order Flow Dilemma

As someone who once ran a brokerage firm, I understand the value and mechanics of PFOF. Firms like Citadel and Susquehanna have built massive businesses off of it. But transparency is key.

New platforms and exchanges like IEX are threatening the PFOF model by prioritizing better execution and transparency through auction-based order matching. I started to realize that Schwab was clinging to outdated practices that no longer served the modern trader.

The Cash Yield Issue

Another huge concern: Schwab doesn't offer an automatic sweep into money market funds. That means your idle cash could be earning close to 0.04% instead of the 4–5% you might get in a money market.

You’d need to manually buy the fund, and then manually sell it if you want to use your cash. That’s not just inconvenient—it’s a strategic move by Schwab to profit from customer inertia. I found that unacceptable.

My Decision to Move: TradeStation

I moved my accounts to TradeStation. While it isn’t perfect and has its own limitations, it better aligns with how I trade today: options-focused, transparent, and execution-sensitive.

I believe in taking control of your own financial destiny. TradeStation offers more transparency, and their platform is built for traders who care about execution and data.

Should You Leave Schwab Too?

I can’t answer that for you. But I can encourage you to ask yourself some hard questions:

Do you feel you’re getting best execution?
Are you happy with customer service?
Are you okay with your idle cash making 0.04% while the firm pockets the spread?
Do you feel your broker puts your interests first?

If the answers are no, it might be time to do your homework and explore alternatives.

Life-Improving Tips for Smarter Trading Decisions

Take control of your cash: Always ensure your idle money is working for you, not the broker.
Demand transparency: Choose brokers that clearly explain their trade execution practices.
Monitor trade fills: If your orders are regularly filled outside of expected ranges, ask questions.
Prioritize education: Platforms that offer training, tools, and communities help you grow as a trader.
Don’t stay loyal blindly: If your broker no longer meets your needs, it’s okay to move on.

FAQs: Leaving Schwab

Q: Should I leave Schwab too?
A: That’s your call. If you're concerned about execution quality, poor support, or idle cash not earning, explore other brokers.

Q: What broker did you move to?
A: I moved to TradeStation. It has a few limitations but also many strengths. I’ll continue sharing my experience.

Q: Is payment for order flow bad?
A: Not inherently. But if it affects execution quality or transparency, it’s a problem.

Q: Can I get better yields on cash elsewhere?
A: Yes. Many brokers offer automatic sweeps into money market funds earning 4–5%.

Q: What if I value full-service offerings?
A: Schwab might still be right for you. But make sure you know what you’re paying for and getting in return.

Call to Action: Take the Next Step

If you’re serious about growing consistent income and taking control of your financial destiny:

Join my free Insider Tips newsletter — Stay ahead with real-time trading insights.
Subscribe to my YouTube channel — Learn how to generate weekly income using the Cash Flow Machine system.
Explore new brokers — Try platforms that prioritize retail traders like TradeStation or Tastytrade.
Get ready for our September Wealth Accelerator Live event — Build your income machine and learn powerful strategies from real traders.

Let’s trade smarter and stay empowered.

Get started today

Conclusion

My departure from Schwab wasn’t emotional—it was strategic. As a retail trader focused on transparency, control, and consistent income, I needed a broker aligned with those values. Schwab no longer delivered that. While they may still be right for some investors, I urge you to evaluate your trading experience objectively.

Every dollar matters. Every execution matters. Every customer interaction matters. Don’t compromise.

Why I Left Schwab After 25 Years: A Transparent Look at My Trading Shift

Insider Tips Newsletter

Join Our Free Trial