Charles Schwab
Trading fees and charges
TC RATING
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We have verified Schwab’s regulation and finances and found a large, strongly capitalized US broker-dealer. US equities broker-dealers are a new category for our 50-point rating, which is still in progress.
Charles Schwab offers $0 commission on online trades of US-listed stocks and ETFs, but other investments and services may involve additional charges. This guide explains the main fees to help you understand your trading costs before placing an order.
If you are new to investing, read our Charles Schwab guide for beginner investors to learn more about its features, fees, and suitability for beginners.
Charles Schwab trading fees: Quick overview
Charles Schwab offers low trading costs, but fees vary depending on the investment and trading method. Here is a quick overview of its main charges:
| Charles Schwab fees at a glance | |
|---|---|
| Fee | Cost |
| Online US-listed stocks and ETFs | $0 commission |
| Options | $0 base commission plus $0.65 per contract |
| Broker-assisted trades | $25 service charge, plus any applicable trading fees |
| Automated phone trades | $5 for eligible transactions |
| OneSource / no-transaction-fee mutual funds | $0 for online purchases |
| Other mutual funds | Up to $74.95 per online purchase |
| US Treasuries | $0 for online trades of new issues and secondary-market securities |
| Secondary-market corporate and municipal bonds | $1 per bond, with a $10 minimum and $250 maximum for online trades |
| Futures and futures options | $2.25 per contract, plus applicable exchange and regulatory fees. Confirm the current rate in Schwab’s pricing guide |
| Forex | $0 online commission, with trading costs reflected in the bid-ask spread |
| Inactivity fee | None |
| Annual maintenance fee | $0 for standard brokerage accounts |
| Minimum balance requirement | $0 for standard brokerage accounts |
| Outgoing ACH transfer | $0 |
| Outgoing wire transfer | $25, confirm the applicable rate for online submissions |
Does Charles Schwab charge an inactivity fee?
$0
Inactivity fee
$0
Annual maintenance fee
$0
Minimum balance
No, Charles Schwab does not charge an inactivity fee on standard brokerage accounts. You can keep your account open even if you do not trade regularly, without paying an inactivity penalty. Schwab also has no annual maintenance fee or minimum balance requirement for standard brokerage accounts.
This makes Schwab a convenient choice for long-term investors who prefer to buy and hold investments rather than trade frequently. Keep in mind that charges may still apply to certain transactions and services, such as OTC stock trades, broker-assisted orders, and outgoing wire transfers.
Charles Schwab stock and ETF trading fees
Charles Schwab options trading fees and commissions
Charles Schwab charges no base commission for online options trades, but a fee of $0.65 applies per contract. For example, trading 10 options contracts would cost $6.50 in contract fees, excluding any other applicable charges.
10
Contracts
x
$0.65
Per contract
=
$6.50
Contract fees
For options strategies involving multiple parts, the $0.65 fee applies to each contract in each part of the trade. Investors should account for these fees when calculating the total cost of a multi-part options strategy.
Charles Schwab OTC stock trading fees
Charles Schwab charges $6.95 per online trade for over-the-counter (OTC) equities. This is an exception to its $0 commission offer for online trades of US-listed stocks and ETFs.
OTC stocks, including many penny stocks, can carry higher risks than shares traded on major exchanges. They may have lower trading volumes, wider bid-ask spreads, and less liquidity, which can make buying or selling shares at a preferred price more difficult. Investors should consider these factors alongside the trading fee before placing an OTC order.
Charles Schwab mutual fund fees and costs
Charles Schwab’s mutual fund fees depend on the type of fund and how you place your order.
| Mutual fund fees | |
|---|---|
| Fund or order type | Cost |
| OneSource / no-transaction-fee (NTF) funds | $0 for online purchases |
| Other mutual funds | Up to $74.95 per online purchase |
| Broker-assisted OneSource trades | $0 transaction fee, plus a $25 service charge |
| Broker-assisted trades for other mutual funds | Applicable online transaction fee, plus a $25 service charge |
| Mutual fund sales | Typically, $0 in transaction fees, although other fund-specific charges may apply |
If you want to keep costs low, check whether a fund is part of Schwab’s OneSource or NTF programme before placing an order.
Charles Schwab futures, forex and bond trading fees
Charles Schwab’s fees for futures, forex and bonds vary by product and trading method. Here is a breakdown of the main charges.
| Futures, forex and bond fees | |
|---|---|
| Product | Fee |
| Futures and futures options | $2.25 per contract for online and broker-assisted trades, plus applicable exchange and regulatory fees. These products are available through thinkorswim. |
| Forex | $0 online commission. Trading costs are reflected in the bid-ask spread, which is the difference between the buying and selling prices. |
| US Treasuries | $0 for online trades of new issues and secondary-market Treasuries, including Treasury bills, notes, bonds, and Treasury Inflation-Protected Securities (TIPS). Broker-assisted trades incur a $25 service charge. |
| Secondary-market corporate and municipal bonds | $1 per bond for online trades, with a $10 minimum and a $250 maximum. Broker-assisted trades incur the applicable online fee plus a $25 service charge. |
| Specialty products | Fees for commercial paper, foreign bonds, asset-backed securities and other specialty investments may vary. Contact Charles Schwab at 800-626-4600 for product-specific pricing. |
Review the applicable fees and pricing terms before placing an order, as the total cost may include charges beyond the stated commission.
Charles Schwab account maintenance and transfer fees
Charles Schwab keeps standard brokerage account maintenance costs low, with no annual fee, inactivity fee, or minimum balance requirement. The main account and transfer charges are:
| Account and transfer fees | |
|---|---|
| Charge | Cost |
| Annual maintenance fee | $0 |
| Inactivity fee | $0, even if you do not trade regularly |
| Minimum account balance | No minimum for a standard brokerage account |
| Outgoing ACH transfer | $0 |
| Outgoing wire transfer | $25 |
| Full account transfer out (ACAT) | $50 per account |
| Partial account transfer out | $0 |
Schwab charges $50 for a full account transfer out, while partial transfers are free. However, other charges may still apply to specific transactions or services, so review the relevant fee details before transferring funds or securities.
What additional charges does Charles Schwab have?
Although Charles Schwab offers $0 commission on online trades of US-listed stocks and ETFs, some transactions and account services carry additional charges. These include:
Late settlement fee:
$25.
Mutual fund short-term redemption fee:
$49.95 for online and automated phone transactions. Broker-assisted transactions cost $49.95 plus a $25 service charge.
Physical stock certificates:
$100 per certificate for eligible US and some Canadian securities. Additional charges may apply for rush requests. Fees for foreign securities vary depending on the transfer agent’s location.
Overnight and bulk deliveries:
$15 or more, depending on delivery speed and package size.
Overnight Schwab-issued checks:
$15.
Non-sufficient funds or returned items:
$25.
Outgoing wire transfers:
$25 per transfer, or $15 when submitted online. Incoming wire transfers are free.
Foreign currency conversion:
Up to 300 basis points (3%) of the principal.
Custody of non-publicly traded securities:
$250 per position annually, capped at $500 per account.
Foreign stock transactions on the US OTC market:
A $50 foreign transaction fee applies to online trades. Automated phone trades cost $55, while broker-assisted trades cost $75, including the applicable service charges.
Full account transfer out:
$50 per account. Partial transfers are free.
These costs are associated with particular transactions and do not necessarily affect all investors. Check Schwab’s official price list to verify the cost of service before you make a request.
Is Charles Schwab really commission-free?
Yes, it is possible to trade US-listed stocks and ETFs with Charles Schwab for $0 commission. It does not mean, however, that all investments and trading approaches have $0 fees. The cost of options is $0.65 per contract, OTC equity transactions online cost $6.95, and non-OneSource mutual funds have a maximum transaction cost of $74.95. Futures transactions are subject to a $2.25 commission per contract.
Investors should also account for other costs, including applicable regulatory fees, margin interest, and currency conversion charges. Reviewing the fee schedule before trading can help you understand the total cost of an order.
Conclusion
In summary, Charles Schwab can be a cost-effective option for investors who mainly trade US-listed stocks and ETFs online. It offers $0 online commissions for these trades, no inactivity or annual maintenance fee on standard brokerage accounts, and commission-free online trading of US Treasuries.
However, other charges apply depending on the investment and service. These include up to $74.95 for purchases of non-OneSource mutual funds, a $25 service charge for broker-assisted trades, $6.95 per online OTC equity trade, and a $50 fee for a full account transfer out. Partial account transfers are free.
Overall, Charles Schwab can be a cost-effective option for investors who mainly trade US-listed stocks and ETFs online, provided they understand the fees that apply to other transactions. For more details about its regulatory status, account protection, trading platforms, and overall features, read our full Charles Schwab brokerage account review.
Pro Tip
Before placing a trade, check the fee for your specific investment and order method. Schwab offers $0 commission on online trades of US-listed stocks and ETFs, but OTC trades, options, certain mutual funds, and broker-assisted services may carry additional charges. If you invest in mutual funds, check whether the fund is included in Schwab’s OneSource or no-transaction-fee (NTF) programme to avoid transaction fees.
Frequently Asked Questions
1. Does Charles Schwab charge an inactivity fee?
No, Schwab does not charge an inactivity fee on standard brokerage accounts. You can keep your account open even if you do not trade regularly.
2. How much does Charles Schwab charge per trade?
Online trades of US-listed stocks and ETFs cost $0 in commission, while options cost $0.65 per contract and online OTC trades cost $6.95. Broker-assisted trades carry a $25 service charge, plus any applicable trading fees.
3. Is Charles Schwab really commission-free?
Yes, Schwab offers commission-free online trading for US-listed stocks and ETFs. However, options, OTC equities, futures, certain mutual funds and assisted trading services may involve additional charges.
4. Does Charles Schwab charge an annual account fee?
No, standard brokerage accounts have no annual maintenance fee. They also have no minimum balance requirement.
5. What are Charles Schwab options trading fees?
Online options trades have no base commission but cost $0.65 per contract. Additional service charges may apply to broker-assisted orders.
6. Does Charles Schwab charge fees for stocks and ETFs?
Online trades of US-listed stocks and ETFs have a $0 commission. Fees may apply to other securities or different order methods.
7. What is the Charles Schwab OTC trading fee?
Schwab charges $6.95 per online OTC equity trade. Broker-assisted orders may also incur a $25 service charge.
8. Does Charles Schwab charge a wire transfer fee?
Yes, an outgoing wire transfer generally costs $25, while outgoing ACH transfers are free. Schwab also lists a $15 fee for outgoing wires submitted online, so check the current rate before transferring money.
9. Does Charles Schwab charge an account transfer fee?
No, transferring an entire account out of Schwab costs $50 per account. Partial account transfers are free.
10. What are Charles Schwab futures trading fees?
Futures and futures options cost approximately $2.25 per contract, plus applicable exchange and regulatory fees. Check Schwab’s current pricing guide to confirm the rate before trading.
11. Are there hidden fees at Charles Schwab?
Some transactions may involve additional costs, such as regulatory fees, margin interest, ADR custody fees, stock-borrow fees, or currency conversion charges. These depend on the investments and services you use, so review the fee schedule before trading.
12. What is the minimum deposit for a Charles Schwab brokerage account?
Standard brokerage accounts have no minimum deposit requirement. Other account types may have different requirements.
