Hidden Fees with Charles Schwab
Like any brokerage, Charles Schwab has a variety of fees tied to certain services. Some of these fees are more obscure and may catch you by surprise when reviewing your monthly statement if you're not expecting them. While many of these fees are small and not very noticeable, they can add up over time if you're not actively keeping track of them.
Schwab Live Agent Fee
While most standard transactions done via desktop or mobile platforms are either low-cost or commission-free, there is a $25 fee for placing a trade with a live agent over the phone or in person at a branch.
Charles Schwab IRA Fees
| Fee |
Amount |
| Charles Schwab IRA setup fee |
$0 |
| Charles Schwab annual IRA fee |
$0 |
| Charles Schwab IRA termination fee |
$0 |
| Charles Schwab account maintenance fee |
$0 |
| Charles Schwab account inactivity fee |
$0 |
| Charles Schwab outbound full account transfer (ACAT) fee |
$50 |
| Charles Schwab outbound partial account transfer fee |
$0 |
Automated Phone Transaction Fee
While not common with many other firms, Schwab charges a fee for investors who call into its automated phone system to verify their account and place a trade. Though you won't speak with a live agent, using this automated service will cost $5 per trade.
Foreign Stock Transaction Fee
When placing any trade while outside the United States, even while traveling, there is an additional $50 foreign transaction fee. This is added to any other applicable fees, such as the live agent fee for phone transactions.
Foreign Stock Trading Fee
A foreign stock trading fee is applied to all trades executed on a foreign exchange. These transactions must be completed with a live broker, and cannot be done online or through the automated phone system. The fee is either $100 or 0.75% of the trade value, whichever is higher, with no maximum fee limit.
Transaction Fees for Funds at Schwab
Transaction-fee mutual funds incur a cost of $49.95 or $79.95, even for online transactions. The higher fee applies to some fund families at Charles Schwab that do not compensate the company for administrative services. Therefore, Schwab must charge additional fees for handling the management behind the scenes. There is no fee for selling the assets for either fund type. One popular fund, Vanguard’s VTSAX, charges $49.95 per purchase, which often surprises new investors who weren’t expecting this hidden fee when they make the purchase.
Additionally, Automatic Investment Plans carry a fee of up to $10 per transaction. This fee is capped at 8.5% of the principal amount, and transactions with a principal under $100 are exempt.
Free Charles Schwab Account
Visit Schwab Website
Options Trading Commissions
All options trades at Schwab are subject to a $0.65 per-contract fee. However, this fee is waived for buy-to-close options trades executed online, if the option's value is $0.05 or less. There are no charges for being assigned a position or exercising options.
Schwab Futures Trading Fee
For all futures and futures options trades, Schwab charges a $2.25 fee per contract. Unlike other transactions, there are no additional fees for trades made through a live broker.
Secondary Market Transaction Fees
Secondary market transactions, including the trading of corporate bonds, municipal bonds for government agencies, zero-coupon Treasury bonds (such as STRIPS), and CDs, are subject to a $1 fee per bond. The minimum total transaction fee for these trades is $10, and the maximum is $250.
Basic and Mutual Fund Account Activity Fees
Schwab charges a $25 fee for late settlements. Additionally, a $49.95 mutual fund short-term redemption fee is applied to online and automated phone transactions.
Other Account Activity Fees
If you request physical certificates for U.S. and Canadian securities, there is a $100 fee. Additional charges may apply for rush requests. For foreign securities, the standard $100 fee varies depending on the location of the transfer agent.
Partial asset transfers are free, but full account transfers incur a $50 fee per account. Additionally, there’s a $25 fee per position for all transfers of title for physical certificates of securities.
Cashiering and Administrative Fees
If you request checks from Schwab, there is a $15 fee. Outgoing wire transfers come with a $25 fee per transfer, which reduces to $15 if set up online.
Margin Rates
|
Debit Balance
|
Charles Schwab Margin Rate
|
|
$0 - $24,999.99
|
11.825%
|
|
$25,000 - $49,999.99
|
11.325%
|
|
$50,000 - $99,999.99
|
10.375%
|
|
$100,000 - $249,999.99
|
10.325%
|
|
$250,000 - $499,999.99
|
10.075%
|
|
$1,000,000+
|
call 877-752-9749
|
Custody Fees for Non-Publicly Traded Securities
For securities held in your accounts that are not publicly traded on exchanges, Schwab charges a $250 fee per position, with a maximum fee of $500 per account. These fees are billed annually, not monthly.
Free Charles Schwab Account
Visit Schwab Website
Special Service Fees at Schwab
Schwab imposes an exchange process fee to cover costs incurred from securities exchanges, self-regulatory organizations, and options exchanges. The fee fluctuates based on rates set by the SEC and exchanges. There are also fees related to American Depository Receipts (ADRs) to offset charges from brokers and banks to Schwab. Additionally, there are transaction fees for certain mutual funds and treasury obligations through auctions, as well as a $100 per-contract delivery fee for physical, deliverable commodities.
Updated on 1/17/2026.
Arthur Chachuna is a professional personal finance blogger, and the owner of Brokerage-Review.com.
He has been an avid investor for 25 years, and has a background in both applied math and programming.
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