Charles Schwab charges no account maintenance fees, no trading commissions, and no inactivity fees for most account types

Charles Schwab does not charge you to open or maintain a brokerage account, and you will not pay per-trade commissions on stocks, ETFs, or options. There are no monthly or annual fees simply for having money there. This flat-fee structure applies to individual brokerage accounts, IRAs, and most other standard investment accounts.

That said, Schwab does charge fees in specific situations — when you use certain services, when you trade certain products, or when your account falls below a minimum balance for premium services. Understanding which fees apply to your situation matters because some are avoidable and others are built into how the service works.

Key Takeaways

  • No account maintenance, monthly, annual, or inactivity fees apply to standard Schwab brokerage and IRA accounts.
  • 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 account research tools each carry separate charges depending on which service you use.
  • Schwab's premium advisory services (Schwab Intelligent Portfolios Premium and Schwab Wealth Advisory) charge annual fees based on assets under management, typically 0.30% to 0.84% per year.
  • Margin accounts charge interest on borrowed money, and IRAs have contribution limits but no per-transaction fees.

Trading fees: what costs money and what doesn't

Stocks and ETFs trade commission-free on Schwab's platform. You can buy or sell as many shares as you want without paying a per-trade fee. This applies whether you trade once a month or fifty times a day.

Options contracts cost $0.65 per contract to trade. If you buy or sell a single options contract, that is one charge. If you trade ten contracts in one order, that is $6.50 total. This fee applies to opening and closing positions.

Mutual funds vary. Schwab's own mutual funds (Schwab Funds) have no transaction fee. Mutual funds from other companies may charge a transaction fee ranging from $0 to $49.95 per trade, depending on the fund. Schwab publishes a list of no-transaction-fee mutual funds on its website. If you buy a fund not on that list, you will see the fee before you confirm the trade.

Bonds, futures, and forex all carry separate fee structures. Bonds typically charge a markup built into the price rather than a visible fee. Futures and forex are less common for typical investors and have their own commission schedules.

Account service fees you may encounter

Wire transfers out of your Schwab account cost $25 for domestic wires and $45 for international wires. Incoming wires are free. If you need to move money frequently, this adds up — consider using ACH transfers instead, which are free but take three to five business days.

Expedited delivery of securities costs $50. This is rarely needed for most investors and applies only if you request physical delivery of stock certificates or similar documents.

Returned check fees are $15 per check if a check you deposit bounces. Overdraft fees do not apply to standard brokerage accounts, but if you have a linked Schwab Bank account, overdraft fees are $35 per occurrence.

Account research and data services carry fees if you subscribe to premium tools. Schwab's basic research is free, but specialized data feeds or advanced charting platforms may charge monthly subscriptions ranging from $10 to several hundred dollars depending on the tool.

Advisory and management fees for premium services

Schwab Intelligent Portfolios Premium charges 0.30% annually on assets under management. This is an automated investment service that builds and rebalances a portfolio for you. The fee is calculated on your total account balance and charged quarterly.

Schwab Wealth Advisory charges between 0.50% and 0.84% annually depending on your account size and the services included. This is a human advisor service for accounts with higher balances. The exact percentage depends on what you negotiate with your advisor and how much you have invested.

These fees are separate from any trading fees. If you use Schwab Intelligent Portfolios Premium and trade options, you pay both the 0.30% annual management fee and the $0.65 per-contract options fee.

Margin account interest and borrowing costs

If you open a margin account and borrow money from Schwab to buy securities, you pay interest on the borrowed amount. Schwab's margin interest rates vary based on how much you borrow and current market conditions. Rates typically range from 5% to 12% annually, but you should check Schwab's current rates before borrowing.

Margin is optional — you can have a standard cash account with no borrowing and no margin interest charges. Margin accounts do not charge a fee just for existing; you only pay interest if you actually borrow.

IRA account fees and contribution limits

Traditional and Roth IRAs at Schwab have no annual maintenance fees, no contribution fees, and no per-transaction fees for buying and selling securities within the account. You can trade stocks and ETFs commission-free just as you would in a regular brokerage account.

IRAs do have contribution limits set by the IRS — $7,000 per year for most people under 50, and $8,000 for people 50 and older (these limits change yearly). These are not Schwab fees; they are federal rules. Exceeding the limit can result in tax penalties, but Schwab does not charge you directly for going over.

If you want to transfer an IRA from another institution to Schwab, Schwab does not charge a transfer fee. Some other institutions may charge an outgoing transfer fee, but that comes from your old provider, not Schwab.

Fees you avoid by choosing Schwab

Schwab does not charge account inactivity fees if you stop trading for months or years. Your account remains open and free to maintain. Some brokers charge $50 or more annually if you do not trade, but Schwab does not.

There is no minimum balance requirement to open a standard brokerage account or IRA. You can start with $1 and add money over time. Some advisory services do have minimums (typically $25,000 for Schwab Wealth Advisory), but basic accounts do not.

Schwab does not charge for account closures. If you decide to leave, closing your account is free. You may pay wire fees to move money out, but the account closure itself costs nothing.

Frequently Asked Questions

Does Schwab charge a monthly fee just for having an account?

No. Standard brokerage accounts, IRAs, and most other account types have no monthly, annual, or maintenance fees. You only pay when you perform specific actions like trading options, wiring money, or using premium advisory services.

Why do some mutual funds have transaction fees and others don't?

Schwab negotiates with mutual fund companies to offer certain funds commission-free. Funds on Schwab's no-transaction-fee list have no charge. Other funds may carry fees because Schwab has not negotiated a no-fee arrangement, or the fund company requires it. You can see the fee before you buy.

If I open a margin account, do I automatically pay fees?

No. A margin account itself is free to maintain. You only pay interest if you actually borrow money. If you open a margin account but never borrow, you pay nothing beyond normal trading fees.

What's the difference between Schwab's free accounts and its advisory services?

Free accounts let you buy and sell securities with no management fees. Advisory services (Intelligent Portfolios Premium or Wealth Advisory) charge annual fees because an algorithm or human advisor actively manages your portfolio. You choose which service level you want.

Can I avoid wire transfer fees?

Yes. Use ACH transfers instead, which are free but take three to five business days. Wire transfers are faster but cost $25 domestic or $45 international. For most situations, ACH is the cheaper option.