Charles Schwab Commission Schedule
| Investments | Commissions |
|---|
| Stocks and ETFs | $4.95 |
| Stocks and ETFs broker assisted | $29.95 |
| Stocks and ETFs phone trades | $9.95 |
| Options | $4.95 + $0.65 per contract |
| Mutual funds | $76 to buy, $0 to sell |
| Futures | $1.50 per contract |
| CDs, Corporate Bonds, Municipal Bonds, Government Agencies, Zero-Coupon Treasuries, including STRIPS and Mortgage-Backed Securities | $1 per bond, $10 minimum, $250 maximum |
| Preferred Stocks and REITs | $4.95 |
| Commercial Paper and Foreign Bonds, Unit Investment Trusts | call for pricing |
| Investments |
stocks, bonds, mutual funds, futures, Treasury issues, options, CDs, insurance, ETFs, futures,
annuities, non-U.S. securities and ADRs, WEBs and Canadian foreign orders
|
| Charles Schwab minimum deposit to open account | $1,000 for cash account, $2,000 for margin account |
| Promotion link | Charles Schwab promotions |
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 |
$25 |
Charles Schwab Margin Interest Rates
|
Debit Balance
|
Margin Rate
|
|
$0 - $24,999.99
|
9.575%
|
|
$25,000 - $49,999.99
|
9.075%
|
|
$50,000 - $99,999.99
|
8.125%
|
|
$100,000 - $249,999.99
|
8.125%
|
|
$250,000 - $499,999.99
|
7.825%
|
|
$1,000,000+
|
call 877-752-9749
|
Charles Schwab Account Activity Fees
| Amount Late settlement | $25 |
| Mutual fund Online and Automated Phone short-term redemption fee | $49.95 |
| Mutual fund Broker-Assisted short-term redemption fee | $49.95, plus $25 service charge |
| Order out of certificates (for U.S. and Canadian securities) | $500 per certificate $0 per issue |
| Order out of certificates (for foreign
securities) | Physical certificates Variable fee (based on the location of the
transfer agent) |
| Restricted stock re-registration/gifting | $75 per transfer |
| Failure to maintain required minimum
balance in certain Schwab Proprietary Non- Sweep Money Funds, including SVAI
(check prospectus for minimum balance requirements) | $10 per redemption |
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Custody Fees for Non-publicly Traded Securities
| Description | Amount |
|---|
| Annual maintenance fee for restricted securities | $150 per position |
| Annual maintenance fee for
other non-publicly traded
securities | $250 per position
Maximum of $500 per
account
If applicable, fees for
ineligible securities
and valuation are
additional. |
| Transaction fee | $100 per transaction |
| Ineligible security fee | $250 per year per position |
| Valuation fee | Effective September
1, 2013: $500 per year per position valued |
| Non-transferable fee | $1 per month per position |
Note: Certain Non-Publicly Traded Securities may be
exempt from certain fees. Custody fees for Non-Publicly
Traded Securities are billed annually in arrears.
Charles Schwab Fees List
Charles Schwab listed its fees in this document.
Comparison
| Broker Fees |
Stock/ETF
Commission |
Mutual Fund
Commission |
Options
Commission |
Maintenance
Fee |
Annual IRA
Fee |
|
Ally Invest
|
$4.95
|
$9.95
|
$4.95 + $0.65 per contract
|
$0
|
$0
|
|
TD Ameritrade
|
$6.95
|
$49.95
|
$6.95 + $0.75 per contract
|
$0
|
$0
|
|
Charles Schwab
|
$4.95
|
$76 ($0 to sell)
|
$4.95 + $0.65 per contract
|
$0
|
$0
|
|
Firstrade
|
$0
|
$0
|
$0
|
$0
|
$0
|
Charles Schwab Brokerage Overview
Charles Schwab has earned its reputation as one of the best brokers in the business. Compared to other brokers like Fidelity and TD Ameritrade, Charles Schwab brokerage offers a broad spectrum of investments, low trade fees, and excellent order execution. Schwab’s biggest advantage, though, is their customer service. You can call, chat, or email a helpful, personable customer service agent at any time. Taken together, these factors should put Schwab near the top of any potential investor’s list.
What Types of Investments are Available at Schwab?
Schwab is a full-service brokerage. They offer domestic and international stocks, including the research and data to evaluate stock opportunities. Domestic stocks enjoy quick execution of trades at a low commission. On the international front, Schwab gives you access to stocks in 35 countries listed on more than 60 stock exchanges. Bonds and other fixed income products are also available through Schwab’s brokerage interface.
In addition to equities and bonds, Schwab offers over 3,000 mutual funds with no transaction fees and no load. ETFs are also on offer through Schwab ETF OneSource, and online ETF transactions are not charged commission. The ETF Select List offers recommendations on the best funds in certain categories, and you can sort the list by expense ratio, Morningstar rating, or category. On the other hand, Schwab’s index and target date funds are best-in-class in terms of operating expense ratio, and they offer a low-risk way for investors to diversify their portfolio.
For advanced investors, Schwab offers options and futures trading. The optionsXpress tool can give sophisticated insights and help make sense of a trade. These products also come with specialized support and investor education so you can make smart decisions about options and futures investing. Schwab also offers margin loans that provide flexible cash for heavy trading or personal needs.
Charles Schwab Fees, Commissions, Expenses, and Minimums
In order to trade on a Schwab brokerage account, you’ll need $1,000+ to invest. While you can technically open the account with less than $1,000, you won’t be able to submit any transactions. This $1,000 minimum can be waived in certain instances, including setting up an automatic transfer of $100 every month upon account opening. The company also recently removed all minimums from its index funds, so you can invest in these no-commission, low-expense funds without a large balance.
Schwab doesn’t charge any account fees to its customers. There is no fee for a low balance and no annual fee to keep the account open. Some brokers also charge fees if your account is inactive for too long, but this isn’t the case at Schwab. Schwab does charge a $50 fee to close an account, but since there are no low balance nor inactivity fees, leaving an empty account open is a viable option.
This year, Schwab lowered its commission for trades from $8.95 to $4.95 in response to pressure from competitors. Schwab is now one of the lowest cost online brokerages at the new rate. Options trades are also competitively priced at $4.95 per trade plus 65 cents per contract. Schwab’s index funds and ETFs come with some of the lowest expense ratios in the industry, and Schwab has either stopped offering or waived the cost on funds that carry loads.
For ETFs and index funds, Schwab charges $0 commission, and currently has the industry’s lowest expense ratios. Market cap ETFs range from 0.03% to 0.07% in expenses, while Schwab’s index funds have similar expense ratios from 0.03% to 0.06%, expenses that are lower than Vanguard, the leader in index investing. The low expenses on ETFs and index funds make Schwab especially compelling for investors looking to diversify their portfolios.
Schwab’s Customer Service
Customer service is where Schwab really stands out. Most brokerages offer 24/7 phone support, and Schwab is no exception. Schwab’s representatives are based in the United States, and they’re trained to offer guidance on a wide range of investing questions.
In addition, Schwab’s chat support is intuitive and a great way to get answers to quick questions. Online chat offers a convenient alternative to talking on the phone, and responses come relatively quickly. Schwab also has a secure message center for managing ongoing, longer-term support tickets. These more in-depth responses can require around 12-36 hours to get a response, but they’re a great way to handle important, but not urgent, issues.
Of course, Schwab also has hundreds of physical branches across the country. You can set up an appointment to meet with an advisor at any branch, and if you want, Schwab does offer complete financial management packages. Local branches also often hold complimentary workshops for investors.
Trading Platforms & Research
Charles Schwab has two options for trading platforms. One is the web version, StreetSmart.com. The other is a desktop application called StreetSmart Edge. As you might imagine, StreetSmart.com is a lighter-duty platform, perfect for beginners, that shows stocks, balances, and your portfolio in an easy to understand web application. Schwab also offers a mobile trading app that has many of the same capabilities.
StreetSmart Edge is the next level for more advanced traders. It’s available for Windows or can be run on the cloud through a web portal. The platform offers intuitive navigation, advanced analysis, and options for customization. Via Schwab’s Trade Source, investors can also quickly access Schwab’s research and technical data to make buying decisions.
Both platforms come with no trade minimums or fees. Schwab’s industry leading research is also free to brokerage customers. The company rates equities itself, then lists its ratings alongside Morningstar, Market Edge, S&P Capital IQ, and others.
Charles Schwab Website Link
Charles Schwab fees are as of 2018 and are subject to change. For the most recent information on Charles Schwab fees go to their
website.
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