Does Schwab charge for stock trades? Guide

This article answers: does Schwab charge for stock trades, summarizes Schwab’s current commission policy for U.S.-listed stocks, ETFs and options, lists common exceptions and fees, gives sample cos...

2026-01-24 03:47:00

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Introduction

If you’re asking "does Schwab charge for stock trades", this guide gives a clear, actionable answer and explains the common exceptions, regulatory pass-throughs, and ways to minimize costs. You’ll learn what Schwab’s headline commission policy usually means for U.S.-listed stocks and ETFs, how options and other instruments are charged, and where to check the official fee schedule before you trade.

Overview of Schwab’s commission policy

Short answer: for self-directed online trading of U.S.-exchange listed common stocks and ETFs, Schwab’s standard online commission is typically $0. However, other charges may apply (options per-contract fees, regulatory/exchange fees, broker-assisted charges, foreign market fees, and special service fees). To restate the core search: does Schwab charge for stock trades? In most common online cases for U.S. exchange-listed securities, the direct commission is $0; but that does not mean there are never any fees on a confirmation or statement.

As of January 15, 2026, according to a public broker review, Schwab’s published retail online policy lists $0 base commissions for listed U.S. stocks and ETFs and a per-contract fee for options. This reflects an industry-wide move to zero-commission online trades, while other costs remain possible.

Current standard pricing (headline items)

Online listed U.S. stocks and ETFs

Does Schwab charge for stock trades online? For U.S.-exchange listed common stocks and exchange-traded funds (ETFs) placed via Schwab’s self-directed online platforms, the headline commission is generally $0. This applies to standard market orders and most self-directed online order types. Always confirm the most current terms directly with Schwab’s published pricing materials.

Options trades

Does Schwab charge for stock trades when they involve options? Options trading at Schwab commonly uses a $0 online base commission plus a per-contract fee for each option contract. The per-contract fee is applied to every contract in a single-leg or multi-leg order. Multiple-leg strategies are charged per contract for each leg. Confirm the exact per-contract amount in Schwab’s current pricing guide, since per-contract rates can change.

Other standard instrument fees

Futures: Futures and futures options have separate fee schedules, exchange fees, and possible clearing or per-contract charges.
Mutual funds: Many mutual funds trade commission-free, but some load or transaction-fee funds incur fees. Schwab’s OneSource funds and a list of no-transaction-fee mutual funds have distinct rules.
Bonds and fixed income: Corporate bonds, municipal bonds and treasury trades can have markups or commissions, or be priced via spreads. Some fixed-income trades executed online may still have charges.
Forex and foreign securities: Currency conversion, foreign market access fees, and execution fees apply when trading non-U.S. securities or FX services.

Common exceptions and additional fees

Over-the-counter (OTC) equities and certain foreign/Canadian securities

Does Schwab charge for stock trades executed off-exchange? OTC equities and some foreign or Canadian securities may not be covered by the $0 online commission policy and can incur commissions or special transaction fees. For cross-border or foreign exchange executions, Schwab may assess additional per-trade or percentage-based fees.

Broker-assisted and phone trades

Does Schwab charge for stock trades placed by phone or through a broker? Broker-assisted trades and phone trades usually carry a service charge per trade in addition to any commissions or contract fees. These broker-assisted charges are intended to compensate for human support and differ from self-directed online pricing.

Foreign exchange / local exchange trades

Does Schwab charge for stock trades on foreign exchanges? Trades that execute directly on a foreign exchange (rather than as ADRs or U.S.-listed equivalents) often come with exchange fees, different commission schedules, and local regulatory charges. Some foreign markets may be inaccessible via Schwab’s retail online platform without special account arrangements.

Industry and regulatory fees

Does Schwab charge for stock trades regulatory fees? Regardless of the $0 commission headline, regulatory and exchange fees may be passed through. Examples include the SEC transaction fee (Section 31) on sell transactions, exchange-specific fees and certain options regulatory fees. These pass-through items are small but can appear on confirmations or settlement statements.

Special service fees and account-related charges

Does Schwab charge for stock trades that require special services? Yes — fees can arise for account transfers (ACAT out fees may apply), paper statements or confirmations, returned items, wire fees, or other administrative services. Short-sale borrow fees and margin interest are distinct from trade commissions and will apply under relevant circumstances.

Fee examples and sample trade cost calculations

Example 1 — Standard online U.S. stock trade

Scenario: Buy 100 shares of a U.S.-listed stock online. Headline commission: $0. Regulatory fees: typically negligible on buys; a small SEC fee may appear on sells. Total direct commission cost: $0 (plus any small regulatory fees on a future sell). Answering the query: does Schwab charge for stock trades of this type? Practically, no commission for the online buy itself.

Example 2 — Options spread

Scenario: Enter a 5-contract vertical spread (multi-leg) on a U.S.-listed option. If the per-contract fee is X dollars per contract (check current pricing), the total options fees = X * total contracts charged. For a 5-contract two-leg spread, you may be charged for 10 contracts (5 contracts per leg), so fees = 10 * X. Does Schwab charge for stock trades that use options? Yes — the options contracts carry per-contract fees even though base online commissions for stocks may be $0.

Example 3 — OTC or broker-assisted trade

Scenario: Purchase an OTC equity via a broker-assisted order. Schwab may assess a commission or a broker-assisted service charge plus any OTC specific fees. Total cost may be a flat service charge + percentage commission or a fixed commission. In short: in these non-standard cases, Schwab can and often does charge for stock trades.

Account types and negotiated / alternative pricing

Institutional, advisor-serviced, managed accounts, retirement custodial accounts and other specialized arrangements may have negotiated or alternative pricing. Institutional and advisor platforms use separate pricing guides with different fees and service structures. If you’re on an advisor-managed account or use Schwab Advisor Services, the question “does Schwab charge for stock trades” is answered by different negotiated agreements rather than retail self-directed headline pricing.

Historical context and industry trend

The retail brokerage industry has trended toward zero-dollar commissions for online trading of exchange-listed equities and ETFs. Major brokerages cut retail online commissions in the mid-to-late 2010s and early 2020s, leading to the common $0 headline. Schwab’s retail pricing moved in line with this trend. While headline commissions dropped to $0, brokerages retained revenue sources such as order flow arrangements, margin interest, advisory fees, managed account fees, and certain execution-related or service fees.

How Schwab displays and communicates fees

Does Schwab charge for stock trades and where is that shown? Schwab publishes its pricing and fee schedules in official pricing guides, pricing summary pages, and the account disclosures provided to clients. Trade confirmations and monthly/quarterly account statements show the actual fees and charges applied to executed trades. Schwab also posts separate guides for advisor services and retirement accounts. Always check the current pricing guide and the trade confirmation for the precise charges on a specific trade.

How to avoid or minimize fees

Trade U.S.-listed stocks and ETFs online through self-directed platforms to use the $0 headline commission where applicable.
Avoid broker-assisted or phone trades unless necessary.
Use commission-free ETF and no-transaction-fee mutual fund lists when possible.
Consolidate small trades to reduce per-trade fixed service fees and be aware of regulatory pass-through costs when selling.
For options traders, consider contract volume and the number of legs when estimating per-contract fees.

Fee-related FAQ

Q: Is every stock trade commission-free at Schwab? A: Not every stock trade is commission-free. Does Schwab charge for stock trades in special cases? Yes — OTC trades, some foreign securities, broker-assisted orders and other special executions can carry commissions or additional fees.

Q: Do I pay fees for ETFs at Schwab? A: Most U.S.-listed ETFs trade commission-free under Schwab’s retail online policy, but certain specialized or foreign ETFs may have different treatment. Always confirm with Schwab’s current fund and ETF pricing disclosures.

Q: What are the costs for international stocks? A: International and foreign exchange trades may involve commissions, foreign exchange fees, local market fees, and different settlement procedures. Schwab’s international pricing pages and disclosures specify costs for direct foreign market access or cross-border trades.

Q: Are regulatory fees avoidable? A: Regulatory and exchange fees passed through by Schwab (e.g., SEC Section 31 or FINRA fees) are generally not avoidable for applicable transactions; they are required by regulators or exchanges and are small relative to trade size.

Where to verify current fees (references)

Always rely on Schwab’s official pricing and disclosure documents for the authoritative fee schedule. Schwab publishes retail pricing pages, a Pricing Guide, and instrument-specific fee disclosures. Independent broker reviews can summarize headline changes, but Schwab’s official pages and trade confirmations are the final source for the charges you will incur.

References / Sources used

Charles Schwab — trading overview and platform pricing (official Schwab pricing and disclosure pages).
Charles Schwab — compare and costs of investing materials (official Schwab cost summaries and mutual fund/ETF lists).
Charles Schwab International — cost and investing disclosures for international clients.
Independent broker review (industry review summarizing retail commission changes and Schwab’s $0 commission headline).

Notes, caveats and practical takeaway

Does Schwab charge for stock trades? For most self-directed online U.S.-listed stock and ETF trades, the direct commission is usually $0. However, the full cost of trading can include per-contract option fees, regulatory and exchange pass-throughs, broker-assisted service charges, foreign market fees, and account service charges.
Fee schedules change. Verify prices on Schwab’s official pricing pages and on the trade confirmation for any executed trade. If you have an account with special arrangements (advisor-managed, institutional, retirement custodial), check the specific pricing guide that applies to your account.