Charles Schwab does not charge per-trade commissions for stocks, ETFs, or options

Charles Schwab eliminated commission fees on stock trades, exchange-traded funds (ETFs), and options trades in October 2019. You pay nothing per transaction for these asset classes. This means you can buy or sell individual stocks or ETFs without a per-trade cost deducted from your account.

The absence of per-trade commissions applies whether you trade once a month or fifty times a day. There is no minimum account balance required to access commission-free trading, and the policy covers all U.S.-listed stocks and ETFs, as well as options contracts.

However, Schwab does charge fees in other contexts. Understanding where those fees appear — and where they do not — helps you predict what your actual costs will be.

Key Takeaways

  • Stock, ETF, and options trades carry no per-trade commission at Charles Schwab, regardless of how often you trade or how much money you have in your account.
  • Mutual funds purchased directly from Schwab carry no transaction fee, but mutual funds from other companies may charge a transaction fee ranging from $49.95 to $99.95 per purchase.
  • Futures contracts, bonds, and forex trading each have their own fee schedules that vary by product type and contract size.
  • Account maintenance fees, inactivity fees, and minimum balance requirements do not explore to most Schwab brokerage accounts.
  • Margin interest, wire transfer fees, and advisory service fees are separate from trading commissions and explore only when you use those specific services.

Where Schwab does charge transaction fees

Mutual funds are the main exception to Schwab's commission-free trading. Schwab's own mutual funds have no transaction fee when you buy them. However, mutual funds managed by other companies may carry a transaction fee of $49.95 or $99.95 per purchase when bought through Schwab, depending on the fund. You can view the fee tier for any mutual fund before you buy it on Schwab's platform.

Futures contracts have their own fee structure. Schwab charges per contract, and the cost varies based on the type of futures product. You can find the specific rate for the contract you want to trade on Schwab's futures pricing page, which lists fees by product category (energy, metals, agriculture, and so on).

Bonds purchased through Schwab include a markup rather than a separate commission. When you buy a bond, Schwab adds a spread to the price. The markup is not listed as a separate line item; it is built into the price you see. The size of the markup depends on the bond type and current market conditions.

Forex (foreign currency) trading through Schwab's forex platform carries a spread cost rather than a commission. The spread is the difference between the bid and ask price, and it varies by currency pair and market conditions.

Fees that are not per-trade charges

Charles Schwab does not charge account maintenance fees, inactivity fees, or minimum balance fees on most standard brokerage accounts. You will not be charged straightforward for holding an account open or for not trading during a particular month.

If you use margin (borrowed money to trade), Schwab charges margin interest on the borrowed balance. This is not a per-trade fee; it is an interest rate applied to your margin loan, similar to interest on a credit card. The rate varies based on the amount you borrow and current market rates.

Wire transfers out of your Schwab account cost $25 for domestic wires and $45 for international wires. Incoming wires are free. This is a service fee, not a trading fee, and applies only when you move money out of the account.

If you use Schwab's advisory services — such as Schwab Intelligent Portfolios or Schwab Intelligent Advisor — those services charge an advisory fee based on your account balance, not on the number of trades you make. Advisory fees are separate from trading commissions.

How Schwab makes money without per-trade commissions

Schwab generates revenue from several sources that do not appear as line-item charges on your statement. Understanding these helps explain how the firm can offer commission-free trading.

Interest on cash balances is one source. When you hold uninvested cash in your Schwab account, Schwab earns interest on that cash. Schwab also earns revenue from margin interest charged to customers who borrow to trade. Additionally, Schwab receives payment for order flow — compensation from market makers and exchanges for routing your trades to them. This payment does not come out of your account; it is a separate transaction between Schwab and the market participant.

Schwab also offers premium services like advisory accounts, retirement planning consultations, and banking products (such as checking accounts and savings accounts) that generate fees or interest income. These are optional services; you do not have to use them to trade stocks and ETFs commission-free.

Comparing Schwab's costs to other brokers

Most major U.S. brokers — including Fidelity, E*TRADE, TD Ameritrade, and Robinhood — also offer commission-free stock and ETF trading. The competitive landscape shifted after Schwab eliminated commissions in 2019, and other firms followed.

The differences between brokers now lie in other areas: mutual fund transaction fees, futures pricing, advisory service fees, margin interest rates, and the quality of research tools and educational resources. If you trade primarily stocks and ETFs, per-trade costs will be the same across these major brokers. Your choice may depend instead on platform features, customer service, or account types offered.

Special account types and their fees

Charles Schwab offers several account types beyond the standard brokerage account, and some have different fee structures. A Schwab IRA (Individual Retirement Account) has no per-trade commissions for stocks and ETFs, just like a regular brokerage account. Schwab 401(k) accounts for self-employed people and small business owners also have no per-trade commissions.

Schwab's Investor Checking account, which is a hybrid banking and brokerage product, has no monthly maintenance fee and no minimum balance requirement. Trading within that account follows the same commission-free structure as a standard brokerage account.

If you use Schwab's advisory services through Schwab Intelligent Portfolios or work with a Schwab advisor, you pay an advisory fee (usually a percentage of assets under management) in addition to any trading costs. The advisory fee replaces per-trade commissions in those accounts; you do not pay both.

Frequently Asked Questions

Do I pay anything to buy or sell a stock at Schwab?

No. Stock trades are commission-free. You pay nothing per transaction. The only costs you might encounter are bid-ask spreads (the difference between what buyers will pay and what sellers ask), which exist on every broker and are not a Schwab fee.

What about options trading — is that free too?

Options trades are commission-free at Schwab. You do not pay per contract. However, you may pay an options assignment fee if an option you sold is exercised, and you will pay any applicable regulatory fees set by exchanges, but these are separate from trading commissions.

If I buy a mutual fund, will I be charged?

Schwab's own mutual funds have no transaction fee. Mutual funds from other companies may charge $49.95 or $99.95 per purchase. Before you buy any mutual fund through Schwab, the platform shows you whether a transaction fee applies.

Does Schwab charge me for not trading?

No. There are no inactivity fees, account maintenance fees, or minimum balance requirements on standard Schwab brokerage accounts. You can hold an account open without trading and without paying any fees.

What is the most expensive thing I can do at Schwab?

If you use margin (borrowed money), margin interest is typically the largest ongoing cost. Margin rates vary but are usually between 5% and 12% annually, depending on your balance and current market rates. Wire transfer fees ($25 domestic, $45 international) are also common costs for customers who move money frequently.