Investing Costs: Mutual funds, ETFs, Stocks

For trade orders placed through a broker, a $25 service charge applies. Schwab reserves the right to change the funds we make available without transaction fees and to reinstate fees on any funds. Exchange Process Fee—This is a fee Schwab charges to offset fees imposed on us directly or indirectly by national securities exchanges, self-regulatory organizations, or U.S. option exchanges. Schwab shall have the right to determine the amount of such fees in its reasonable discretion, and such fees may differ from or exceed the actual third-party fees properly paid by Schwab in connection with any transaction. ETFs at Charles Schwab & Co., Inc. (« Schwab ») which are U.S. exchange-listed can be traded without a commission on buy and sell transactions made online in a Schwab account.

• Schwab Bank does not assess foreign transaction fees (i.e., a fee to convert U.S. dollars to local currency) to debit card holders.
• Charles Schwab brokerage accounts start at $0 and have notoriously low fees compared to other brokerages.
• NerdWallet, Inc. is an independent publisher and comparison service, not an investment advisor.

Schwab pays about 0.45% on uninvested cash in your brokerage account (this rate can vary based on market conditions). Schwab does offer clients options for getting a higher rate for cash products, but you’ll need to select and opt into them. The investing information provided on this page is for educational purposes only. NerdWallet, Inc. does not offer advisory or brokerage services, nor does it recommend or advise investors to buy or sell particular stocks, securities or other investments.

Charles Schwab is best for:

Accounts of Your Household—Accounts that have been linked in accordance with Schwab’s householding guidelines. Schwab makes a reasonable effort to automatically link qualified accounts of persons with the same last name at the same home address, including accounts held at certain Schwab affiliates. Periodic investment plans [dollar-cost-averaging, dividend reinvestment or Schwab’s Automatic Investment Plan (« AIP »)] do not assure a profit and do not protect against loss in declining markets. Select index options will be subject to a fee as shown in the table below. No, as long as you place the trade yourself, you do not have to pay the « broker-assisted trade » fee.

• We also eliminated target date funds because each is too narrowly focused for a list that offers investment ideas to a broad group of investors.
• At CNBC Select, our mission is to provide our readers with high-quality service journalism and comprehensive consumer advice so they can make informed decisions with their money.
• Also, Schwab doesn’t allow its advisors to be appointed to PCRA accounts.
• Schwab has a $0.65 contract fee, while Vanguard charges $1.

Charles Schwab is one of the few companies that tries to offer both « convenience » and « low cost » in one brokerage package. While it features inexpensive index funds and ETFs and charges zero trade commissions on most assets, it also has a network of more than 350 physical branches scattered throughout the United States. Charles Schwab is suitable for all types of investors, from beginners to experienced traders, offering low-cost index funds, premium research and a wide selection of investment options. Schwab Intelligent Portfolios® and Schwab Intelligent Portfolios Premium® are made available through Charles Schwab & Co. Inc. (« Schwab »), a dually registered investment advisor and broker dealer.

Ready to start investing with Schwab?

Schwab does not charge an advisory fee for the SIP Program in part because of the revenue Schwab Bank generates from the cash allocation (an indirect cost of the Program). The portfolios include a cash allocation to FDIC‐insured Deposit Accounts at Charles Schwab Bank, SSB (« Schwab Bank »). Schwab Bank earns income on the deposits, and earns more the larger the cash allocation. The lower the interest rate Schwab Bank pays on the cash, the lower the yield. Some cash alternatives outside of Schwab Intelligent Portfolios Solutions pay a higher yield. Schwab Intelligent Portfolios Solutions invests in Schwab ETFs.

Stocks and Options

In addition to real-time news and earnings reports, the broker offers a variety of research reports and market commentary authored by in-house experts, as well as a quarterly magazine free of charge. Both StreetSmart and Schwab.com provide access to research and robust tools catering to various types of traders. Basic trades can be placed on Schwab’s website, while the other platforms offer more sophisticated features. Investing costs and fees matter—and you should always know what you’re paying. At Charles Schwab, we make it easy for you to be an informed investor. Not all products and services are available in all countries and may be subject to country-specific restrictions.

Charles Schwab Fees Schedule, Brokerage Account Trading Commissions (

She’s enjoying her dream with publishing credits on US News and World Report, GoBanking Rates, Investopedia, MSN Money, Investor’s Business Daily and more. She helps other learn about personal finance and investing at barbarafriedbergpersonalfinance.com. Her Encyclopedia of charles schwab fees Personal Finance is a teaching tool for financial literacy. Like the S&P 500 itself, roughly 14% of SWPPX’s portfolio is in its top two holdings, Apple (AAPL) and Microsoft (MSFT). Fund weightings by industries and individual stocks are nearly identical to the S&P 500’s.

Multiple leg online option orders such as spreads, straddles, combinations and rollouts are charged $0.65 per contract fees for the total number of option contracts. For Broker Assisted Options Commissions, add $25 to the Online Options Commission. Complex option orders involving both an equity and an option leg, including Buy/Writes or Write/Unwinds are charged per contract fees for the option.

For example, its S&P 500 index fund has an expense ratio of only 0.02%. The expense ratio on its Total Stock Market Index (SWTSX) is just slightly higher at 0.03%. You can also open an additional education saving account as a complement to your 529 plan account.

It’s Multi-Cap Core (SCHB) and Large-Cap Core (SCHX) ETFs, for example, each have expense ratios of just 0.03%. Plus, over 4,000 of Schwab’s mutual funds have minimum investment requirements of only $100 or less. And many of those funds also come with no transaction fees or loads, including all 200+ of its index funds. Charles Schwab caters to a diverse range of investors, from beginners to advanced traders seeking sophisticated tools and research. With its low fees, no account minimum, and access to a wide selection of investment options, Schwab is an excellent choice for those looking to invest in stocks, ETFs, and mutual funds.

The app faced some backlash after it temporarily limited trading of Gamestop (GME) as Reddit users upended the market. Charles Schwab has closed more than 103 complaints in the last 12 months, according to BBB data. BBB ratings don’t guarantee that a company will perform well or be reliable. You may want to ask friends and family who have used Charles Schwab about their experiences, or read online customer reviews. Schwab dedicated teams are standing by and ready to help answer your questions and support your checking or banking needs. You can manage your checking and investing in one convenient location.

But you have to be approved first in order to buy and sell options. Schwab also offers account holders access to research, financial tools, and planning strategies. Standard online $0 commission does not apply to over-the-counter (OTC) equities, transaction-fee mutual funds, futures, fixed-income investments, or trades placed directly on a foreign exchange or in the Canadian market. Options trades will be subject to the standard $0.65 per-contract fee. Service charges apply for trades placed through a broker ($25) or by automated phone ($5). See the Charles Schwab Pricing Guide for Individual Investors for full fee and commission schedules.

The competitive pricing, multiple trading platforms, and extensive investment options make Charles Schwab a top choice for investors seeking a reliable and feature-rich platform. The acquisition of TD Ameritrade further strengthens Schwab’s offerings, giving clients access to the acclaimed thinkorswim platform and additional investment products. Schwab delivers access to more than 8,000 no-transaction fee mutual funds, and within its own proprietary lineup of index funds and ETFs, Schwab now offers some of the lowest expense ratios available. All told, more than 2,400 funds on Schwab’s platform have expense ratios of 0.50% or below. Example model for Dedicated Financial Advice is limited to services defined as non-discretionary advice for a wrap fee. Additional discretionary advice or advised offers may be available and typically come with higher management fees versus non-discretionary advice.

Also, Schwab doesn’t allow its advisors to be appointed to PCRA accounts. But the site also states that you may be able to appoint a non-Schwab-issued independent advisor. Schwab’s mission is to prioritize the customer experience through its “Through Clients’ Eyes” strategy, focusing on the needs of Schwab customers.