Charles Schwab Pricing Guide for Individual Investors

View this notice in PDF format

April 2024

Pricing information in this guide supersedes prior versions.

The most recent pricing information is available at www.schwab.com/pricingguide.

How to Reach Us:

By Phone:

Schwab by Phone™: To reach an Investment Professional or to use our automated phone services, call 1-800-435-4000.

TeleBroker®: For access to our automated touch-tone services, call 1-800-2SCHWAB (1-800-272-4922).

For services in 中文: 1-800-662-6068

For services in español: 1-800-786-5174

International clients: For services in English, 中文, or español, call 1-415-667-8400.

By Web and Wireless:

schwab.com

chinese.schwab.com

international.schwab.com

Web-enabled phone: Look for Schwab on your phone’s web menu.

PDA: Consult schwab.com/wireless on your desktop.

Schwab reserves the right to change or waive fees at our discretion, subject to notification in accordance with applicable laws and regulations.

Introduction

Schwab provides a broad range of value-added services, some of which have associated fees. This document provides you with an overview of standard pricing for commission rates, transaction fees, and key account charges and service fees.

Information detailed in this guide also applies to international clients (clients residing, or who later move, outside the U.S., its territories and possessions). Commissions and fees described in this guide are stated in U.S. dollars. Not all products and services are available in all countries, and may be subject to country-specific restrictions. A separate pricing guide applies to clients associated with Charles Schwab, Hong Kong, Ltd.

Certain clients may have a different pricing structure based on assets or activities in their accounts at Schwab.

Definitions

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.

Schwab aggregates the balances and activities of Accounts of Your Household to determine for your brokerage accounts: whether those accounts may qualify for certain fee waivers, and whether those accounts may qualify for certain benefits or features (“Household Calculations”).

Schwab may consider other accounts to be in your household upon your request if account holders are in the same family, there is a dependent relationship, or in certain other similar instances at Schwab’s discretion. You are responsible for identifying accounts that should be linked for purposes of determining Accounts of Your Household and Household Calculations. For example, if you or other members of your family who reside at your home address have a different last name (including a spouse, if applicable), you need to contact Schwab to request that we combine your accounts for purposes of Household Calculations. If an account is added to Accounts of Your Household, any impact on Household Calculations may not take effect until the following quarter.

Householding rules applicable to fiduciary accounts are as follows: IRA, Custodial and certain Trust accounts that meet Schwab’s householding guidelines generally will be automatically included in Accounts of Your Household and Household Calculations. If you have an IRA, Custodial or Trust account and you are acting in a fiduciary capacity, it is your responsibility and not Schwab’s to consider whether it is appropriate to consider the balances and activities of that account in Household Calculations, which could benefit the fiduciary account and/or other Accounts of Your Household. You must contact Schwab to request that the balances and activities of your fiduciary account not be included in Accounts of Your Household and Household Calculations if you determine that it is not appropriate.

Qualified Retirement Plan (QRP), Keogh, Company Retirement Account (CRA), Pension Trust, Individual 401(k) and 403(b)(7) accounts (collectively, “Retirement Plan Accounts”) are not automatically included in Household Calculations. However, for certain services, the account holder of the Retirement Plan Account may elect to include the Retirement Plan Account in Accounts of Your Household and Household Calculations by providing Schwab with written instructions to do so. Please contact Schwab for the required form.

Automated Phone Trades—Trades placed through Schwab by Phone™ and TeleBroker®.

Direct Access—A feature that allows trades to be placed directly through an electronic communications network, market maker or exchange.

Household Balance—The total aggregate balance, over a given period of time, of the assets and certain liabilities in Accounts of Your Household. In order to determine qualification for any fee waiver presented in the Pricing Guide for Individual Investors, Schwab will add up your daily Household Balances for the applicable time period, then divide this total by the number of days in the period.

Minimum Deposit Requirement—The minimum amount that must be deposited and maintained in an account to avoid account closure. For Schwab One International® Accounts, the amount that must be maintained in an account is $1,000—lower than the Minimum Deposit Requirement.

Online Trades—Trades placed through Schwab.com (which includes international.schwab.com, schwab.com.hk, and the Chinese-language version of Schwab.com), StreetSmart Edge®, StreetSmart Central®, StreetSmart Mobile®, thinkorswim® desktop, thinkorswim® web, thinkorswim® mobile, Schwab Mobile, Schwab software, or Schwab APIs.

Minimum Deposit Requirements

Commissions and Transaction Fees1

*Limited to National Market System (NMS) securities, excluding standardized options.

Note: For Equity New Issues (Primary and Secondary Offerings), a selling concession is included in the offering price.

† Applies to non-NMS securities.

† Applies to non-NMS securities.

Foreign Stock Transactions‡

‡These fees apply to trades of foreign ordinary shares placed directly on a foreign exchange or on the U.S. over-the-counter (OTC) market.

Non-U.S. ETFs are available for eligible non-U.S. residents as broker-assisted trades, subject to a $50 transaction fee. For non-U.S. ETF orders, please contact the Global Services team from inside the U.S. at 1-800-992-4685 and from outside the U.S. at +1-415-667-8400.

Special Stock Transactions

• Large block transactions (orders of 10,000 or more shares, or orders over $500,000): Can be eligible for special handling and/or pricing—please call us for information.
• Restricted stock transactions: Broker-assisted commission pricing schedule applies for all restricted stock trades. Single orders that include restricted and unrestricted shares of the same security will be charged the broker-assisted rate.
  
  Note: Standard commission schedules apply to vested equity awards issued by an employer and corporate stock plan.

Stock Borrow Fees for Short Selling

For certain securities, if you have an open order or open short position in your Account, whether it is established through short selling, option exercise or assignment, account transfer, or otherwise, Schwab can charge a Stock Borrow Fee. The fee is calculated as the end of day short market value, multiplied by the quoted interest rate, divided by 360. This Stock Borrow Fee is subject to change on a daily basis and can be charged as long as you hold the open short position. The aggregate monthly Stock Borrow Fee will appear on your account statement. The interest rate charged will vary depending on the supply and demand for the particular security in the securities lending market. Schwab can seek to charge you any rate consistent with Schwab’s view of competitive necessities.

Mutual Fund Transaction Fees per Executed Trade

Some funds also charge sales and/or redemption fees. Please read the prospectuses for details. You can buy shares directly from a fund company or its principal underwriter or distributor without paying Schwab’s transaction or service charges (except Schwab Funds®).

*An increased transaction fee applies to purchases of funds from certain fund families that do not pay Schwab for recordkeeping, shareholder, and other administrative services on fund shares held by clients. Schwab may receive compensation on fund shares held by other client segments. For more information and to identify any applicable transaction fees associated with purchasing a given fund, please refer to the Fund Facts & Fees tab on the individual fund page on Schwab.com.

**AIP transaction fees apply to AIP-enrolled mutual funds. Increased transaction fee funds are not eligible for AIP enrollment.

Note: Per-trade transaction fees do not exceed 8.5% of principal. Trades below $100 in principal are exempt from the transaction fee. For information about offshore funds (funds registered outside the U.S. for purchase by non-U.S. persons only), please call us.

Options and Future Commissions per Executed Trade

Note: Per-contract fees are waived for buy-to-close options trades executed online for $0.05 or less.

Note: There are no commissions or per-contract fees assessed on transactions resulting from options exercises and assignments.

Note: Commission rates depicted above are quoted on a per-contract, per-side basis. Pricing does not include customary National Futures Association (NFA) and exchange fees. Additional fees can apply at some foreign exchanges. NFA and exchange fees can increase or decrease depending on the rates set by NFA or by the various futures exchanges, as applicable. Additional market data fees can apply at some futures exchanges.

Fixed Income Investments

Schwab reserves the right to act as principal on any fixed income transaction, public offering, or securities transaction. When Schwab acts as principal, the bond price includes our transaction fee (outlined below) and can also include a markup that reflects the bid-ask spread and is not subject to a minimum or maximum. When trading as principal, Schwab may also be holding the security in its own account prior to selling it to you and, therefore, may make (or lose) money depending on whether the price of the security has risen or fallen while Schwab has held it. When Schwab acts as agent, a commission will be charged on the transaction.

Note: Large block transactions (orders of more than 250 bonds) can be eligible for special handling and/or pricing—please call us for information.

Note: Our commissions and markups can be slightly less than our published schedule shown above due to rounding.

Account Activity Fees

*See Special Service Fee Waivers.

Cashiering and Administrative Services Fees

†See Special Service Fee Waivers.

Custody Fees for Non-Publicly Traded Securities

Note: Custody fees for Non-Publicly Traded Securities are billed annually in arrears. Certain Non-Publicly Traded Securities may be exempt from certain fees. Non-Publicly Traded Securities include (list is subject to change and not exhaustive): promissory notes; church bonds; limited partnerships; private limited partnerships; limited liability companies; private common, preferred, and convertible preferred stock; private bonds; private warrants; private placements; and private REITs.

Special Service Fees

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. These differences may be caused by various internal and external factors, including, among other things, the rounding methodology used, the use of allocation accounts, transactions or settlement movements for which a fee may not be assessed, timing differences in changes, third-party rate caps and floors, calculation errors, and various other anomalous reasons.

The Securities and Exchange Commission (SEC) assesses transaction fees on national securities exchanges and self-regulatory organizations based on the aggregate dollar amount of sales of certain securities. The SEC recalculates the amount of this fee periodically—at least once per year but sometimes more often. National securities exchanges and self-regulatory organizations offset the transaction fees by charging their member broker-dealers such as Schwab, and we, in turn, offset this fee by charging you an Exchange Process Fee for covered sell transactions.

U.S. option exchanges charge Schwab and other broker-dealers per-contract fees for purchases and sales of exchange-listed options. The exchanges may charge these fees even on transactions executed on other exchanges, which can result in multiple fees being imposed on Schwab for a single transaction. Schwab offsets these fees by charging you a single Exchange Process Fee for each covered transaction.

Any Exchange Process Fee that appears on your trade confirmation for a sale of an exchange-listed option combines the offsets for the fees charged by the U.S. option exchanges, national securities exchanges, and self-regulatory organizations.

Schwab’s Exchange Process Fee will rise or fall periodically depending upon the rates set by the SEC, self-regulatory organizations or by the U.S. option exchanges, as applicable.

Exchange Process Fee for American Depositary Receipts (ADR)—This is a fee Schwab charges to offset fees imposed on us by executing brokers. It is associated with transaction taxes assessed by certain governments as a percentage of the purchase amount on certain securities, and the rate is subject to change. The fee will appear as an “Exchange Process Fee” on your trade confirmation.

American Depositary Receipt (ADR) Fee—Banks that custody ADRs are permitted to charge ADR holders a fee. Fees collected from Schwab by the Depository Trust Company for an ADR will be automatically deducted from your Schwab account(s) and shown on your account statement(s) as “ADR Pass-Thru Fee.”

Transaction Fee—This fee includes either fees charged for purchases and sales of certain mutual fund shares or fees charged for purchasing U.S. Treasury obligations via the auction process. The amount of this fee will appear on your trade confirmation.

Delivery Fee—Schwab assesses a $100 per-contract fee to offset costs associated with client transactions to make or take delivery of a physically deliverable commodity. In addition, other fees not assessed by Schwab can be passed through to you, including, but not limited to, fees charged by our clearing firms and others for commodity handling, inspections, storage and warehousing, delivery financing, etc. Some fees can be one-time delivery-related fees, while others can be recurring fees assessed at periodic intervals. You will see such fees itemized on your Schwab trade confirmations and account statements for your futures account. Delivery-related fees are subject to change without notice.

Special Service Fee Waivers

• Fees to order out physical certificates: Fees can be waived for households that meet certain asset levels.
• Wire transfer fee: With $100,000 or more in Household Balances, you will receive three free online domestic wire transfers per quarter.
• Overnight delivery fee for Schwab-issued check requests: With $1,000,000 or more in Household Balances, overnight delivery fees for Schwab-issued checks will be waived.

Endnotes

1 Excluding mutual funds, commissionable trades that execute over more than one day will be charged a separate commission for each additional day; each separate commission will apply to the portion of the trade executed on the corresponding additional day. Trade orders for which price or quantity are changed by the client and, as a result, execute over multiple trades on the same day are each charged a separate commission.

2 Up to 999,999 shares can be placed per trade.

3 Transactions for foreign ordinary shares incur additional custody, clearing, and settlement expenses. A foreign transaction fee is added to trades placed on the U.S. over-the-counter (OTC) market through all channels. The commission and foreign transaction fee will be combined and will appear as one line item, labeled “Commission,” on your trade confirmation.

4 Schwab’s short-term redemption fee will be charged on redemption of funds purchased through Schwab’s Mutual Fund OneSource® service (and certain other funds with no transaction fee) and held for 90 days or less. Schwab reserves the right to exempt some funds from this fee, including certain Schwab Funds®, which can charge a separate redemption fee, and funds that accommodate short-term trading.

Commissions and Transaction Fees for Schwab Global Accounts

Introduction

With your Schwab Global Account™, you can place trade orders for foreign securities on foreign exchanges in foreign currencies.

To establish a Schwab Global Account™, you must have a Schwab One® Account. Please see the information below about commissions and transaction fees for your Schwab Global Account™. To view other pricing information that may apply to your Schwab Global Account™, please refer to the rest of this guide.

Commissions and Transaction Fees

For Schwab Global Accounts, trades placed on foreign stock exchanges are subject to commissions and local broker fees, as follows:

Trades Placed on Foreign Stock Exchanges1

Commissions and Fees per Executed Trade in Local Currency

1 This list of countries and fees is subject to change without notice.

2 Schwab is charged a local broker fee for all trades placed directly on foreign markets. The fee is passed directly on to clients and reported separately as “Other fee/tax” on the trade confirmation.

3 Local broker fees in Canada are up to $0.005 CAD per share for stocks trading at less than $1 CAD per share, and $0.01 CAD per share for stocks trading at or above $1 CAD per share.

4 The additional fee charged is a financial transaction tax of 0.3% of principal imposed by the government of France. It applies on all buys for securities with a market capitalization in excess of €1 billion. This is reflected in “Other fee/tax” on the trade confirmation.

5 Additional fees charged in Hong Kong include:

• Transaction levy of 0.003% of principal on buys and sells, rounded to the nearest HK cent.
• Trading fee of 0.005% of principal on buys and sells, rounded to the nearest HK cent.
• Stamp duty of 0.13% of principal on buys and sells, rounded up to the nearest HK dollar.

6 The additional fee charged is a financial transaction tax imposed by the government of Italy: 0.1% of principal on purchases executed on regulated markets or MTFs; or 0.2% of principal on purchases executed other than on regulated markets or MTFs. It applies on all purchases for securities with a market capitalization in excess of €500 million. This is reflected in “Other fee/tax” on the trade confirmation.

7 Additional fees charged in the United Kingdom include: PTM Levy £1 GBP on buys and sells where the principal amount is greater than £10,000 GBP and a stamp duty of 0.5% of principal on buys only.

Foreign Currency Transactions*

Foreign currency transactions are subject to a fee based on the amount of currency converted in a single transaction, as follows:

*To the extent that you hold a foreign currency in your Schwab Global Account™ that is paying a negative interest rate, Schwab can be charged interest to hold that currency. If that occurs, Schwab reserves the right to charge your Account, with no additional markup, the amount of interest charged to Schwab.

Please note that this does not apply to Schwab accounts managed by an independent investment advisor.

Independent investment advisors are not owned by, affiliated with, or supervised by Charles Schwab & Co., Inc. (“Schwab”). Certain investment advisors, such as Charles Schwab Investment Management, Inc. (“CSIM”) and Schwab Wealth Advisory, Inc. (“SWAI”), are affiliated with Schwab.

Not all products and services are available in all countries, and may be subject to country-specific restrictions.

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