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

Charles Schwab eliminated per-trade commissions in 2019 and has not reinstated them. When you buy or sell a stock or exchange-traded fund (ETF) through Schwab, you pay zero commission on that transaction. Options trades also carry no per-contract commission — you pay only a flat $0.65 per contract fee, which is separate from any commission.

This means your cost to trade is lower than it was a decade ago, but Schwab still makes money from your account in other ways. Understanding what you actually pay — and what you don't — matters before you open an account or move money there.

Key Takeaways

  • Stock and ETF trades have zero commission; options trades cost $0.65 per contract, flat.
  • Schwab charges account maintenance fees only if your balance falls below $500 or you do not meet other account requirements; most active traders avoid this fee.
  • Margin interest, wire transfer fees, and mutual fund transaction fees are separate charges that apply only if you use those services.
  • Schwab makes revenue from spreads on currency exchange, interest on cash balances, and advisory services, not from per-trade commissions.

What you pay for stocks and ETFs

Buying or selling a stock costs nothing in commission at Schwab. The same applies to ETFs. You place the order, it executes, and there is no separate fee line item for the trade itself. This applies whether you trade during market hours or place an after-hours order.

The only cost you incur is the bid-ask spread — the difference between what buyers are willing to pay and what sellers are asking. That spread is not a Schwab fee; it is the market's cost, and it exists at every broker. A stock with a tight spread (like Apple or Microsoft) costs you pennies in spread. A thinly traded stock might cost you more. Schwab does not control this.

Options trading fees

Each options contract you trade costs $0.65 at Schwab. If you buy one call option contract, that is $0.65. If you sell to close that contract later, that is another $0.65. If you trade 10 contracts in a single order, that is $6.50 total.

This $0.65-per-contract fee is lower than many competitors charge, but it is not zero. Schwab does not waive it for high-volume traders or based on account size. The fee applies the same way whether you are a beginner or an experienced options trader.

Account maintenance and inactivity fees

Schwab charges a $500 minimum account balance requirement. If your account balance falls below $500, Schwab charges a $25 monthly maintenance fee until your balance rises above that threshold again. This fee does not apply if you maintain $500 or more in your account at all times.

Schwab does not charge an inactivity fee — you can open an account, fund it, and leave it untouched for years without paying a penalty. The only account-level fee is the maintenance fee tied to the $500 minimum.

Margin interest and borrowing costs

If you use margin — borrowing money from Schwab to buy securities — you pay interest on the borrowed amount. Schwab's margin interest rate varies based on how much you borrow and current market conditions. The rate is typically lower for larger balances and changes monthly.

You can check Schwab's current margin rates on their website. If you do not use margin, this fee does not apply. Most beginning investors do not borrow on margin, so this is not a cost you will face unless you actively choose to.

Wire transfers and other service fees

Schwab charges $0 for incoming wire transfers but charges $25 for outgoing domestic wire transfers. International wire transfers cost more — typically $45 outgoing. These fees apply only when you actually move money in or out of your account via wire.

Mutual fund transaction fees also exist at Schwab. Some mutual funds carry a transaction fee when you buy or sell them through Schwab; others do not. Schwab publishes a list of mutual funds with no transaction fee, and many investors stick to those to avoid the charge. ETFs, by contrast, have no transaction fees.

How Schwab makes money without per-trade commissions

Schwab's revenue model shifted when commissions disappeared. They now profit from interest on cash balances — when you hold uninvested cash in your account, Schwab earns interest on it. They also earn money from the bid-ask spread on currency conversions if you trade foreign stocks, and from advisory services like robo-advisor accounts.

Schwab also benefits from order flow — they route your trades to market makers and earn a small payment for doing so. This is standard across the industry and does not change your execution price. Understanding this helps you see that Schwab is not a charity; they have found other ways to be profitable, but those ways do not show up as a line item on your trade confirmation.

Frequently Asked Questions

Do I pay commission if I buy fractional shares at Schwab?

No. Fractional shares have the same zero-commission structure as whole shares. You pay only the bid-ask spread, just as you would with a regular stock purchase.

What happens if I trade options and my account is below $500?

You still pay the $0.65-per-contract fee on each options trade. The $25 monthly maintenance fee applies separately if your balance stays below $500. Both fees can apply at the same time.

Does Schwab charge differently if I use their mobile app versus their desktop platform?

No. Commission and fee structure is the same across all platforms. Whether you trade on the app, website, or desktop software, you pay the same rates.

Are there any hidden fees I should know about?

No major hidden fees, but read the account agreement for details on less common services. Account closure fees, returned check fees, and expedited delivery fees exist but apply only in specific situations. The main fees are the ones listed here.

If I transfer my account from another broker to Schwab, do I pay a fee?

Schwab does not charge you a transfer fee. Some brokers you are leaving from may charge an outgoing transfer fee; that is their fee, not Schwab's. Schwab sometimes reimburses transfer fees from other brokers, so ask before you move.