Schwab Stock Trading Fees
Schwab offers commission-free online trading for listed stocks and ETFs. However, there are service charges for automated phone trades ($5) and broker-assisted trades ($25).
Exceptions to Commission-Free Trading
The standard $0 commission does not apply to the following:
Key Facts
- Online listed stock and ETF trades at Schwab are commission-free.
- However, service charges apply for automated phone trades ($5) and broker-assisted trades ($25) for stocks, ETFs, and options.
- The 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.
- Schwab also charges an Exchange Process Fee to offset fees imposed by national securities exchanges, self-regulatory organizations, or U.S. option exchanges.
- The Exchange Process Fee for covered sell transactions may vary periodically depending on the rates set by the SEC, self-regulatory organizations, or U.S. option exchanges.
- Over-the-counter (OTC) equities
- Transaction-fee mutual funds
- Futures
- Fixed-income investments
- Trades placed directly on a foreign exchange or in the Canadian market
Options Trading Fees
Options trades are subject to a standard $0.65 per-contract fee.
Exchange Process Fee
Schwab charges an Exchange Process Fee to offset fees imposed by national securities exchanges, self-regulatory organizations, or U.S. option exchanges. This fee may vary periodically depending on the rates set by these entities.
Sources
FAQs
How much does Schwab charge to sell stock?
Schwab offers commission-free online trading for listed stocks. However, there are service charges for automated phone trades ($5) and broker-assisted trades ($25).
Are there any exceptions to Schwab’s commission-free stock trading?
Yes, the standard $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.
How much does Schwab charge to trade options?
Options trades are subject to a standard $0.65 per-contract fee.
What is the Exchange Process Fee?
The Exchange Process Fee is a fee that Schwab charges to offset fees imposed by national securities exchanges, self-regulatory organizations, or U.S. option exchanges. This fee may vary periodically depending on the rates set by these entities.
Are there any other fees associated with Schwab stock trading?
Yes, there may be additional fees for certain types of trades, such as over-the-counter (OTC) equities, transaction-fee mutual funds, futures, and fixed-income investments.
How can I avoid paying fees when trading stocks with Schwab?
To avoid paying fees, trade listed stocks online. Automated phone trades and broker-assisted trades are subject to service charges.
What are the benefits of trading stocks with Schwab?
Schwab offers commission-free online trading for listed stocks, a wide range of investment options, and access to research and educational resources.
How do I get started with stock trading with Schwab?
You can open a Schwab account online or by phone. Once your account is open, you can fund it and start trading stocks.