Schwab’s specialized resources can help you make more informed decisions about investing in stocks, whether you prefer to invest on your own or prefer ongoing advice.
Traders have access to Schwab’s intuitive stock trading tools that can help you determine when to buy or sell a stock. Get insights from our team of trading specialists who can help you learn about various stock selection strategies.
Top 3 reasons why Schwab is a great choice for stock trading
- Get exceptional value on stock trades. Trade stocks online for just $4.95 per trade.1 You can also trade Over the Counter Bulletin Board (OTCBB) and some pink sheet securities online. Learn more about our fees and commissions.
- Simplify stock selection with intuitive research tools available on Schwab.com.
- Use Schwab Equity Ratings®, our proprietary methodology for identifying stocks we believe will outperform or underperform the market over the next 12 months.
- Find top-rated stocks according to the investment criteria you define with Schwab Stock Lists®.
- Compare multiple stocks based on ratings, fundamentals, and earnings.
- AccessSchwab’s tools and resources specialized for traders. Schwab Trading Services includes our most advanced and intuitive trading platforms, plus trader education and support. Learn more about Schwab Trading Services.
Frequently Asked Questions
Stocks are bought and sold electronically through stock exchanges, the two primary ones in the United States being the New York Stock Exchange (NYSE) and the National Association of Securities Dealers (NASDAQ).
A market order tells the broker to buy the shares at the best available price in the market at the time the order is received.
Pros: Market orders are usually filled quickly.
Cons: Depending on market conditions, you might pay more for your shares than you expect.
Example: You might place an order hoping for a share price of $10.00, but if the best available price in the market is $10.03, then your order will be filled at that price.
A limit order tells the broker to buy the shares only at, or below, a price that you specify.
Pros: You won’t pay more than you specify per share.
Cons: Your trade might take some time to be filled, or it might not be placed at all if the share price fails to fall to the level you specify.
Example: A $10.00 limit order will wait until it can be filled at $10.00 or less. If the market price stays above $10.00 over the life of the order, the order might never be filled.
Day-only orders: This type of order stays in force only until the end of the market day (typically 4:00 p.m. ET). If the trade is not filled by the end of the market day, the order will be canceled.
Good-till-canceled orders: This type of order stays in force for an extended period (for 60 calendar days at Schwab). Your broker will try to fill your order throughout each market day during that period.
Schwab Trading Services clients can also place trades using StreetSmart Edge, our most advanced and powerful trading platform.
Take the next step.
Get started with stock trading today.
Open an Account or call 800-435-4000.
1. Restrictions apply: The $4.95 flat commission does not apply to foreign stock transactions, large block transactions requiring special handling, employer-negotiated commission schedules applicable to equity compensation transactions, or restricted stock transactions. Foreign ordinary shares that trade online in the U.S. over-the-counter (OTC) market and do not settle in the U.S. will have a $50 foreign transaction fee added to the cost of the transaction. All broker-assisted trades are subject to service charges. A minimum deposit of $1,000 is required to open most Schwab brokerage accounts. Waivers may apply. See the Charles Schwab Pricing Guide for details. Employee equity compensation transactions are subject to separate commission schedules.
2. Extended Hours Trading may not be suitable for all investors and poses certain risks. These risks include, but are not limited to, lower liquidity, higher volatility and wider spreads. To learn more call 800-435-4000.
Schwab Equity Ratings and the general buy/hold/sell guidance are not personal recommendations for any particular investor or client and do not take into account the financial, investment or other objectives or needs of, and may not be suitable for, any particular investor or client. Investors and clients should consider Schwab Equity Ratings as only a single factor in making their investment decision while taking into account the current market environment.
Schwab Trading Services™ includes access to StreetSmart® trading platforms, the Schwab Trading Community, and Schwab trading specialists (a Schwab brokerage account is required). There are no fees to use Schwab Trading Services. Other account fees, optional data fees, fund expenses, and brokerage commissions may apply. Schwab reserves the right to restrict or modify access at any time. Schwab brokerage account online applications that have the “Schwab Trading Services” box checked will automatically be enrolled. For questions, call 888-245-6864 to speak to a Schwab Trading Services representative.