Schwab offers the full regular range of investment and trading options to clients. Schwab clients can place orders for stocks, bonds, mutual funds and options either online, by phone or with the assistance of a broker. Schwab also offers the capability to conduct equity transactions directly on foreign exchanges.
Schwab offers banking services including checking and savings accounts, as well as annuities, insurance and advisory services.
Commission / Fee Structure
Like most brokers, Schwab's commissions are tiered on the basis of customer access. Online stock trades cost $8.95, while automated phone orders carry a $5 surcharge and broker-assisted trades carry a $25 surcharge. Trades in Schwab ETFs are commission-free. Options carry the same underlying stock commission plus $0.75 per contract. The additional fees for phone or broker access apply.
Foreign stock transactions carry the same $8.95 online fee, plus a $50 transaction fee for those available through the U.S. OTC exchanges. For direct investment via foreign exchanges, there is no online option and the commission is the greater of $100 or 0.5% of the principal amount. (For related reading, see A Primer On The Forex Market.)
Mutual funds carry no transaction charge so long as the trades are entered online and the fund is included within Mutual Fund OneSource. Broker assistance adds $25 to the transaction. For funds outside of the system, the transaction fee is $76 for online.
New issue bonds carry no transaction fees, and online Treasury bond transactions likewise carry no commission. Secondary bond transactions cost $1 per bond with a $10 minimum.
Investors should be aware that, like every broker, Schwab charges additional fees for various services like wire transfers, account transfers and custodial services. Fees are also charged for portfolio advisory services.
Figure 2: Charles Schwab Commission Structure
Charles Schwab Broker Summary: Tools And Features
RetirementCharles Schwab has a solid reputation for retirement services, with something for everyone from beginners to those with half a million or more in assets.
RetirementCharles Schwab focuses on high-service IRA and Roth IRA accounts, with a vast array of investment choices that have no fees, commissions or sales charges.
RetirementHere's a list of Schwab’s funds for retirement, intended to make planning, diversification and saving for later in life just a bit easier.
InvestingHere's what the Schwab ETF OneSource will mean to the average investor's portfolio and the potential decrease in costs for purchasing ETFs.
Personal FinanceThe investment firm will have to find new ways to boost its bottom line since the low-interest rate environment has pressured its business.