Charles Schwab charges $0 for stock and ETF trades with no account minimum and no annual fee. The main costs to know are the $49.95 non-OneSource mutual fund transaction fee, the $25 broker-assisted trade surcharge, and a $25 outgoing domestic wire fee. Unlike most competitors, Schwab charges $0 for outgoing ACAT transfers — meaning you can leave without a penalty fee if you ever decide to switch brokerages.
Schwab Fee Schedule at a Glance
| Fee type | Cost |
|---|---|
| Stock trades | $0 |
| ETF trades | $0 |
| Options base commission | $0 |
| Options per-contract fee | $0.65 |
| OneSource (NTF) mutual funds | $0 |
| Non-OneSource mutual funds | $49.95 per transaction |
| Schwab Intelligent Portfolios | $0 (free) |
| Schwab Intelligent Portfolios Premium | $30/month + $300 one-time planning fee |
| Account minimum | $0 |
| Annual maintenance fee | $0 |
| Inactivity fee | $0 |
| ACAT-out (full account transfer) | $0 |
| Outgoing domestic wire | $25.00 |
| Outgoing international wire | $25.00+ |
| Broker-assisted trade | $25.00 per trade |
Trading Commissions
Stocks and ETFs: $0
Schwab eliminated stock and ETF commissions in 2019. All listed US stocks and ETFs trade free online, with no minimum trade size or per-share fee. This includes Schwab’s own ETFs (SCHB, SCHD, SCHX, etc.) and all major third-party ETFs.
Broker-assisted trades cost $25. Calling a Schwab representative to place a trade adds a $25 surcharge. Use the website or mobile app for routine trades to avoid this fee.
Options: $0 + $0.65 per Contract
Options trades carry no base commission. The per-contract fee is $0.65, the same as Fidelity, Merrill Edge, and E*TRADE. Schwab acquired TD Ameritrade in 2020, and its thinkorswim platform — now available to all Schwab clients — is one of the most advanced options trading platforms available without a premium subscription.
Example: You sell 8 covered call contracts at $0.65 per contract. Total fee: $5.20.
Mutual Funds: $0 via OneSource, $49.95 Otherwise
Schwab’s OneSource program gives free access to thousands of mutual funds. For funds outside the OneSource list, the transaction fee is $49.95 — the highest among the major brokerages (Merrill Edge charges $19.95; E*TRADE charges $19.99).
| Broker | Non-NTF mutual fund fee |
|---|---|
| Merrill Edge | $19.95 |
| E*TRADE | $19.99 |
| Schwab | $49.95 |
| Fidelity | $49.95 |
| Vanguard | $0–$20 (varies by fund) |
If you plan to invest heavily in actively managed mutual funds not on the OneSource list, Schwab’s fee is among the more expensive options. ETF investors — who pay $0 — are unaffected.
Schwab Intelligent Portfolios: $0 Fee (With a Catch)
Schwab Intelligent Portfolios is a robo-advisor with a $5,000 minimum and no advisory fee. Schwab makes money by including a cash allocation (typically 6–10% of the portfolio) in a Schwab money market fund, which generates revenue for Schwab rather than full market returns for you.
What the cash drag costs you in practice:
| Portfolio | Cash allocation | Approximate annual return drag |
|---|---|---|
| $10,000 | ~$700 | ~$28–$35/year (at 4–5% market returns) |
| $25,000 | ~$1,750 | ~$70–$88/year |
| $50,000 | ~$3,500 | ~$140–$175/year |
These figures depend on market conditions. In a high-interest-rate environment, the cash earns more and the drag is smaller. The cash allocation earns a competitive money market yield, but it does not participate in equity market returns.
Schwab Intelligent Portfolios Premium adds unlimited CFP access for a $30/month subscription fee after a $300 one-time financial plan fee. For a $50,000 portfolio, the Premium fee equals 0.72% annually — more expensive than Fidelity Go or Merrill Guided Investing.
Account Transfer Fee: $0 (No ACAT Fee)
Schwab is one of the few major brokerages with no outgoing account transfer fee. Most competitors charge $49.95–$75. If you ever want to move your account elsewhere, Schwab will not charge you for it.
This also means Schwab is willing to reimburse incoming transfer fees from other brokerages. If you transfer assets to Schwab from a brokerage that charges an ACAT fee, Schwab may cover it — check with a Schwab representative for current promotion details.
Wire Transfer Fees
| Wire type | Fee |
|---|---|
| Outgoing domestic wire | $25.00 |
| Outgoing international wire | $25.00+ |
| Incoming domestic wire | $0 |
| ACH transfer (bank link) | $0 |
Free ACH transfers cover most everyday funding needs. The $25 wire fee applies only when you need same-day settlement or are sending large sums where a wire is required.
Margin Rates
Schwab’s margin rates are competitive but not the lowest available. Interactive Brokers offers lower margin rates for active traders. Schwab’s margin rates are tiered based on your debit balance and are roughly in line with Fidelity and E*TRADE. Visit schwab.com for current rates, which fluctuate with the federal funds rate.
What Schwab Doesn’t Charge
- No account minimum — open with any amount
- No annual maintenance fee
- No inactivity fee
- No dividend reinvestment fee — DRIP is free
- No ACAT-out fee — move your account free
- No fee for incoming wires
Schwab vs Competitor Fees
| Fee | Schwab | Fidelity | Merrill Edge | E*TRADE | Vanguard |
|---|---|---|---|---|---|
| Stock/ETF trades | $0 | $0 | $0 | $0 | $0 |
| Options/contract | $0.65 | $0.65 | $0.65 | $0.65 | $0.65 |
| Non-NTF mutual fund | $49.95 | $49.95 | $19.95 | $19.99 | $0–$20 |
| Robo-advisor fee | $0 | 0.35% (>$25K) | 0.45% | 0.30% | N/A |
| ACAT-out | $0 | $0 | $49.95 | $75.00 | $0 |
Schwab’s ACAT-out advantage ($0 vs. $49.95–$75 at competitors) and its free robo-advisor are standout features. The $49.95 non-OneSource mutual fund fee is a disadvantage for fund-heavy investors.
The Real Cost of Investing at Schwab
For a typical ETF investor, Schwab costs $0 per year. No commissions, no annual fee, no inactivity fee. The costs that matter are:
- $49.95 mutual fund fee — if you buy non-OneSource funds
- Cash drag — if you use Intelligent Portfolios (roughly $30–$175/year depending on portfolio size)
- $25 wire fee — only if you use wires instead of free ACH transfers
Worked example: David holds $75,000 at Schwab in a three-fund ETF portfolio. He rebalances once a year, placing 3 trades. Annual cost: $0 commissions + $0 annual fees = $0 out of pocket. His ETF expense ratios (0.03–0.06% on Schwab ETFs) go to the fund company, not Schwab.
See the full Charles Schwab review and compare all options at the best brokerage accounts guide.
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