Charles Schwab Fees Overview

Summary

Charles Schwab’s flat-rate commissions are lower than the industry average and equity trades cost $4.95 – whether you’re trading 100 or 1,000 shares. Customers can trade 200+ commission-free ETFs and nearly 4,000 no-transaction-fee (NTF) mutual funds for free. You’ll need at least $1,000 to open an account, but that requirement is waived if you set up automatic monthly deposits of at least $100 or open a Schwab Bank High Yield Investor Checking account linked to your Schwab One brokerage account.

You’ll pay $76 to buy a mutual fund that’s not on the NTF list (but there’s no fee to sell it). Margin rates are higher than the industry average: You’ll pay 8.5% if your debit balance is below $25,000. Higher balances may make you eligible for lower interest rates.

  • Stocks
    $4.95
  • ETFs
    $4.95
  • Schwab OneSource ETFs*
    Free
  • Options
    $4.95 + $0.65 per contract
  • Mutual Funds
    $76.00
  • Schwab OneSource Mutual Funds*
    Free
  • Treasuries
    Free
  • Bonds (secondary trades)
    $1 per bond
  • CDs
    $1 per $1,000
  • Annuities**
    0.65%
  • Phone Trade
    Commission + $5
  • Broker-assisted Trade
    Commission + $25
  • Futures***
    Not Available
  • Forex
    Not Available

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    *Average annual return of the S&P 500 since inception

    Equity Commissions

    Like most brokers, Schwab tiers its commissions on the basis of customer access. Online stock trades cost $4.95, while automated phone orders carry a $5 surcharge and broker-assisted trades carry a $25 surcharge.

    Schwab ETF OneSource carries no transaction charge so long as the trades are entered online and the fund is included within its OneSource featured ETFs. Broker assistance adds $25 to the transaction for ETFs as well. Regular equity commission fees apply for ETFs outside of the OneSource platform.

    International Stocks or ADRs are priced at the same $4.95, plus a $50 foreign transaction fee.

    Option Commissions

    Options carry the same underlying stock commission plus $0.65 per contract (recently reduced from $0.75). Investors who make a qualifying net deposit of at least $100,000 could be eligible for up to 500 commission-free online equity and options trades good for two years.

    Margin Rates

    Margin rates are higher than the industry average: You’ll pay 8.5% if your debit balance is below $25,000. Reduced margin rates are available for investors with a debit balance higher than $25,000. Schwab’s current base rate is 6.5%.

    • Debit Balance
      Margin Rate
    • $0 - $24,999
      8.575%
    • $25,000 - $49,999
      8.075%
    • $50,000 - $99,999
      7.125%
    • $100,000 - $249,999
      7.075%
    • $250,000 - $999,999
      6.825%
    • $1,000,000 - $2,499,999
      6.25%
    • $2,500,000 and above
      6.00%

    Mutual Funds

    Mutual funds carry no transaction charge, as long as the trades are entered online and the fund is included within Mutual Fund NTF list. Broker assistance also adds $25 to the transaction. For funds outside of the NTF list, the transaction fee is $76.

    One of Schwab’s major features is Schwab Intelligent Portfolios. It allows investors to create an optimized portfolio with ETFs and/or mutual funds based on the investor’s risk profile without any advisory, commission or account service fees.

    Miscellaneous Fees

    Schwab’s miscellaneous fees are similar to industry standard. They have $0 fees for opening or maintaining a regular or retirement account (with a $1,000 minimum for opening an account). Schwab also doesn’t charge any fees for opening or maintaining a Schwab Trading Services Account.

    • Opening and Maintenance Fees(Individual or Joint)
      Free
    • Opening and Maintenance Fees(Retirement)
      Free
    • One Time or Recurring Transfers
      Free
    • Mutual Fund Short-Term Redemption Fee
      $49.95