Charles Schwab charges different fees depending on the account type and service you use
Charles Schwab does not charge a monthly account maintenance fee for most brokerage accounts. However, you will pay fees in specific situations: when you trade certain investments, when you use certain services, or when your account balance falls below a minimum. The fees that explore depend on which account you hold and what you do with it.
Schwab eliminated commissions on stock and ETF trades in 2019, which removed one of the largest costs for active traders. But fees still exist for options trading, mutual funds, wire transfers, and accounts that don't meet balance requirements. Understanding which fees explore to your situation requires knowing what you plan to do with your account.
Key Takeaways
- Charles Schwab does not charge monthly maintenance fees on standard brokerage accounts, but some account types have minimum balance requirements that trigger fees if not met.
- Stock and ETF trades are commission-free, but options trades cost $0.65 per contract and some mutual funds carry transaction fees.
- Wire transfers, expedited delivery, and certain advisory services all carry separate fees that vary by service type.
- Retirement accounts like IRAs may have different fee structures than taxable brokerage accounts, so check the specific account terms.
Trading commissions and per-transaction costs
Stocks and exchange-traded funds (ETFs) trade commission-free at Schwab. This applies to U.S.-listed stocks, ETFs, and most international stocks. You pay nothing per trade, regardless of how many shares you buy or sell or how often you trade.
Options trades cost $0.65 per contract. If you buy one options contract, you pay $0.65. If you sell to close that position, you pay another $0.65. This applies to all options strategies — calls, puts, spreads, and combinations.
Mutual funds vary. Schwab's own mutual funds (Schwab Funds) have no transaction fee. Mutual funds from other companies may carry a transaction fee of $49.95 or more per trade, though Schwab maintains a list of no-transaction-fee (NTF) mutual funds from outside providers. Before you buy a mutual fund, check whether it appears on Schwab's NTF list.
Account maintenance and minimum balance requirements
Most Schwab brokerage accounts do not charge a monthly or annual maintenance fee. This includes standard individual accounts, joint accounts, and accounts held in trust. You can hold the account open and pay nothing straightforward for having it.
Some account types do have minimum balance requirements. If your account balance falls below the stated minimum, Schwab may charge an inactivity fee or account service fee. The amount and the threshold vary by account type. For example, some accounts may have a $25,000 minimum, while others may have no minimum at all. Check your account agreement or contact Schwab directly to learn the minimum for your specific account.
Retirement accounts such as Traditional IRAs, Roth IRAs, and SEP IRAs also do not charge monthly maintenance fees at Schwab, though some may have minimum balance requirements depending on the account features you select.
Wire transfers and cash movement fees
Outgoing domestic wire transfers cost $25 per transfer. Incoming domestic wire transfers are free. International wire transfers cost more — typically $45 for outgoing transfers, though the exact amount may depend on the destination country and currency involved.
ACH transfers (electronic transfers to and from your bank account) are free in both directions. If you need to move money between your Schwab account and a linked bank account, ACH is the no-cost option, though it typically takes one to three business days.
Expedited delivery of securities or cash may carry a fee if you request it. Standard delivery is free; expedited options cost extra and vary by the type of delivery you request.
Advisor and service fees
Schwab offers advisory services at different price points. Schwab Intelligent Portfolios is a robo-advisor service with no advisory fee — you pay only the underlying fund expenses. Schwab Intelligent Portfolios Premium charges an annual advisory fee of 0.30% of assets under management, with a $20,000 minimum account balance.
If you work with a Schwab financial consultant or advisor for personalized information, fees depend on the service level and the type of account. Some advisory relationships are fee-based, meaning you pay a flat fee or hourly rate. Others may be commission-based or a combination of both. Ask your advisor to explain the fee structure before you begin working together.
Schwab also charges for certain specialty services. For example, if you request a paper statement instead of electronic delivery, or if you need expedited customer service, additional fees may explore. These are not standard charges — they explore only if you request the service.
Fees that do not explore at Schwab
Schwab does not charge commissions on stock trades, ETF trades, or most bond trades. You will not pay a per-share fee or a percentage of the trade value for these transactions. This is different from some other brokers that still charge commissions on certain investment types.
Schwab does not charge fees for opening an account, closing an account, or transferring assets into your account from another brokerage. Asset transfers (also called ACAT transfers) are free and typically take five to seven business days to complete.
Dividend payments and interest earned in your account do not trigger fees. You keep the full amount of dividends and interest credited to your account.
How to find the complete fee schedule for your account
Schwab publishes a detailed fee schedule on its website under the account documentation section. The exact location varies depending on your account type — brokerage accounts, retirement accounts, and advisory accounts each have separate fee schedules. You can also request a printed copy by contacting Schwab customer service.
Your account agreement, which you received when you opened the account, also lists the fees that explore to your specific account. If you cannot locate your agreement, Schwab can send you a copy. Review the agreement for your account type to see which fees are relevant to you.
If you are considering opening a Schwab account, ask the representative to walk you through the fee schedule before you fund the account. This ensures you understand what you will and will not pay.
Frequently Asked Questions
Does Schwab charge a monthly fee just for having an account?
No. Most Schwab brokerage and retirement accounts do not charge a monthly maintenance fee. However, some accounts may have a minimum balance requirement, and if your balance falls below that threshold, a fee may be charged. Check your account agreement to see if a minimum applies to your account.
Do I pay a fee every time I buy or sell a stock?
No. Stock and ETF trades are commission-free at Schwab. You pay nothing per trade, no matter how many shares you buy or sell. Options trades do cost $0.65 per contract, and some mutual funds carry transaction fees, but stocks and ETFs do not.
What does it cost to move money out of my Schwab account?
Outgoing domestic wire transfers cost $25. ACH transfers to a linked bank account are free but take one to three business days. International wire transfers cost more, typically $45, depending on the destination. Transferring your entire account to another brokerage is free.
Are there hidden fees I should know about?
Schwab does not advertise hidden fees, but less common services do carry charges — expedited delivery, paper statements, and certain advisory services all have costs. Review your account agreement or contact Schwab to ask about any service you plan to use before you incur the fee.
Do retirement accounts at Schwab have different fees than regular brokerage accounts?
Retirement accounts do not charge monthly maintenance fees, just like regular accounts. However, the minimum balance requirements and some service fees may differ. Check the fee schedule for your specific retirement account type to see what applies.