Charles Schwab: Uncover the Fees and Commissions for Brokerage Accounts

Introduction

If you're considering opening a brokerage account with Charles Schwab, it's crucial to understand the associated fees and commissions. This will help you make an informed decision and avoid any unexpected expenses.

Account Opening Fee

Schwab does not charge an account opening fee for brokerage accounts.

Maintenance Fees

Schwab charges a $25 quarterly account maintenance fee if your account balance falls below $25,000. This fee is waived for active traders who make at least 12 trades per quarter or maintain a balance of $100,000 or more.

Trading Fees

Schwab offers commission-free trading for online stock and ETF trades. However, there is a $6.95 fee for over-the-counter (OTC) stock trades and a $25 fee for other non-equity trades.

Exchange Process Fee

Schwab's Exchange Process Fee, previously known as the SEC Self-Regulatory Organization (SRO) Fee, is a variable fee that is passed on to Schwab clients. This fee is set by the Securities and Exchange Commission (SEC) and varies based on market conditions.

Other Fees

Additional fees may apply for certain account features and services, such as margin trading, wire transfers, and check writing. It's recommended to consult Schwab's fee schedule for specific details.