The basic steps to sell stock on Charles Schwab
To sell stock on Charles Schwab, you log into your account, find the stock in your portfolio, enter a sell order with the number of shares and price, and submit it for execution. The order goes to the market, and once a buyer is found at your price or better, the sale completes and the cash lands in your account — usually within one to two business days as a settlement.
The exact steps depend on whether you use Schwab's website, mobile app, or call a broker. The process is the same in each: locate the holding, specify how many shares to sell, choose your order type, and confirm. Most people use market orders (sell at the current price when ready) or limit orders (sell only if the price hits a number you set).
You do not need to do anything special to prepare. Schwab holds the shares in your account and lets you sell them directly from there. If you own fractional shares, you can sell those too.
Key Takeaways
- You sell stock through Schwab's website, mobile app, or by phone; all three methods reach the same market and execute the same way.
- A market order sells your shares at the current price right away, while a limit order waits until the price reaches the level you choose.
- Cash from a sale settles in your account within one to two business days, but the order itself executes in seconds or minutes during market hours.
- Schwab charges no commission on stock sales, though the bid-ask spread (the difference between buy and sell prices) is a real cost you pay to the market.
Selling through the Schwab website or app
Log into your Schwab account and go to the Positions tab or Portfolio section. Find the stock you want to sell and click on it. You will see a Sell button or a Trade option; click that to open the order form.
Enter the number of shares you want to sell. If you own 50 shares and want to sell all of them, type 50. If you want to sell only part of your position, enter that smaller number. Schwab will show you how many shares you own so you cannot accidentally sell more than you have.
Choose your order type. A market order sells at the best available price right now — it executes almost when ready during market hours but you do not know the exact price until after the sale. A limit order lets you set a minimum price; the sale only happens if the stock reaches that price or higher. Limit orders can take hours, days, or never execute if the price never reaches your target.
Review the order summary, which shows the stock symbol, number of shares, order type, and estimated proceeds. Then click Confirm or Submit. The order goes to the market when ready.
Selling by phone with a Schwab broker
Call Schwab's main line and ask to speak with a broker. You will need your account number and the stock symbol. Tell the broker how many shares you want to sell and whether you want a market order or a limit order with a specific price.
The broker will repeat back the details, confirm you want to proceed, and execute the order. You will receive a confirmation number and a record of the trade. This method takes longer than the website or app but is useful if you have questions or want to discuss the sale before it happens.
Schwab does not charge a fee for phone trades on stocks, the same as online trades.
Market orders versus limit orders
A market order prioritizes speed over price certainty. It sells your shares at whatever price the market is offering right now. If you place a market order for 100 shares of a stock trading at $50, you will likely sell all 100 shares within seconds, but the actual price per share might be $49.98 or $50.02 depending on the bid-ask spread and how many shares are available at each price level. Market orders almost always execute completely and when ready during regular trading hours (9:30 a.m. to 4 p.m. Eastern time, Monday through Friday).
A limit order prioritizes price certainty over speed. You set a minimum price — for example, $51 per share — and the order only executes if the stock reaches that price or higher. If the stock never reaches $51, your order never sells. Limit orders can sit for days or weeks. They are useful when you want to avoid selling at a price you think is too low, but they carry the risk that you miss the sale entirely if the stock moves the wrong direction.
Most people use market orders for stocks they want to sell now. Limit orders are more common when you are willing to wait for a better price or when you are selling a volatile stock and want to protect against a sudden drop.
When the sale settles and when you can use the cash
Stock sales settle T+2, which means two business days after the trade date. If you sell stock on a Monday, the cash appears in your account on Wednesday. If you sell on a Friday, it settles on Tuesday (Monday is not a business day). Weekends and market holidays add extra days.
You can see the sale in your account when ready — it shows as a pending transaction — but you cannot withdraw or spend the cash until settlement is complete. Schwab will show you a "settled cash" balance separate from "unsettled cash" so you know what money is available to use right now.
If you want to buy another stock right away, you can use the proceeds from the sale before settlement is complete through Schwab's Good Faith Violation rules, but only if you have not violated this rule recently. Repeated violations can restrict your account, so it is safer to wait for settlement if you are new to trading.
Taxes and record-keeping
When you sell stock for more than you paid for it, you owe capital gains tax. Schwab tracks your cost basis (the price you paid) automatically and shows your gain or loss on each sale. At the end of the year, Schwab sends you a Form 1099-B, which reports all your sales to the IRS.
If you held the stock for more than one year before selling, the gain is taxed as a long-term capital gain, which usually has a lower tax rate than ordinary income. If you held it for one year or less, it is a short-term capital gain, taxed at your regular income tax rate. Schwab labels each sale with the holding period so you know which category it falls into.
Keep records of your trades for at least three years in case the IRS asks questions. Schwab stores all your trade history in your account under the History or Statements section, so you can read it anytime.
Frequently Asked Questions
Does Schwab charge a commission when I sell stock?
No. Schwab charges no commission on stock sales, the same as most major brokers. You do pay the bid-ask spread, which is the difference between what buyers are willing to pay and what sellers are asking — this is a market cost, not a Schwab fee, and it is built into the price you receive.
Can I sell stock after market hours?
You can place an order after hours, but it will not execute until the market opens the next day. Schwab offers extended-hours trading (4 p.m. to 8 p.m. Eastern and 7 a.m. to 9:30 a.m. Eastern), but not all stocks trade during these times and prices can be much wider. Most people sell during regular hours for better prices and faster execution.
What happens if I sell stock in a retirement account like an IRA?
The sale works the same way — you log in, enter the sell order, and it executes. The difference is tax treatment: sales inside an IRA do not trigger capital gains tax, and the cash stays in the IRA until you withdraw it. You can buy other investments with the proceeds without leaving the account.
Can I cancel a sell order after I place it?
Yes, but only if it has not executed yet. Market orders usually execute in seconds, so you have a very small window. Limit orders that have not filled can be cancelled anytime before market close. Log into your account, find the pending order, and click Cancel. Once an order executes, it cannot be undone — you would have to place a new buy order to reverse it.
What if I want to sell only part of my position?
Enter the number of shares you want to sell, not the total you own. If you own 200 shares and want to sell 75, type 75. Schwab will sell those 75 and leave 125 in your account. You can sell the rest later whenever you choose.