Opening an account at Schwab is a simple process. We have over 270 offices nationwide, staffed with investment professionals who will take the time to understand your needs and help you select the correct account to meet your financial objectives. Additionally, you can speak to one of our phone representatives, who can guide you through the process. Or you can quickly open an account online.
Schwab offers a variety of online resources to help you select a mutual fund for your portfolio
Our screening tools enable you to narrow the search of funds to those that meet your specified parameters.
As a client, you can access in-depth analytical information from independent sources when you view Mutual Fund Summary Pages. These information-packed reports are available for more than 10,000 funds tracked by Morningstar.
The Schwab Center for Investment Research conducts a rigorous review of funds on a quarterly basis that constitutes the Mutual Fund OneSource Select List™.
Arrange a consultation with an Investment Professional by calling 800-779-8879.
Listed below are the mutual fund e-mail alerts that are available to you as a Schwab Customer.
EConfirms—Faster, paperless trade confirmations including commission information delivered to you via email.
Mutual Fund Performance Summary—Month-end mutual fund summary including market commentary by Schwab analysts and benchmark performance
Mutual Fund OneSource Select List—A quarterly email from Schwab with the latest Mutual Fund OneSource Select List, a list of carefully screened funds from Schwab based on performance, risk, expenses and other criteria.
Electronic Delivery—Electronic delivery of regulatory documents from equity and mutual fund companies.
When you invest regularly, without being influenced by market fluctuations or economic conditions, you avoid the pitfalls of trying to time the stock market. Plus, you take advantage of compounding and dollar cost averaging and relieve yourself from the need to remember to invest regularly. Schwab's Automatic Investment Plan allows you to invest a set amount in on a regular basis. With AIP, you choose the dollar amount, the frequency with which you'd like to invest and, of course, the Schwab Mutual Fund OneSource® fund you'd like to automatically invest in.
Dollar-cost averaging does not ensure a profit against loss in a declining market. Because AIP and dollar-cost averaging involve continuous investment in securities regardless of fluctuating price levels, investors should consider their financial ability to continue purchases through periods of low price levels.
Schwab’s Mutual Fund OneSource® service gives you access to a wide selection of funds from America’s most prominent fund companies, all available without transaction fees. (Service-handling and/or short-term redemption fees may apply.) OneSource funds are identified by a "Yes" in the Fee/Expenses section of Fund Summary pages and are indicated with an arrow on the Comparison and Screening results pages.
Transaction fees and short-term redemption fees
Transaction Fees Per Executed Trade
Transaction fees may apply to certain no-load and low-load funds which do not participate in our Mutual Fund OneSource® service. Such funds are subject to Schwab's standard transaction fees in addition to any redemption fees imposed by the fund:
Fund Type
Online Trades
Automated Phone Trades
Broker-Assisted Trades
Mutual Fund OneSource®
Funds
$0
$0
$25.00
Transaction Fee Funds2
$49.95
$49.95
Online fee+ $25.00
Schwab does not charge transaction fees for funds available through our Mutual Fund OneSource Service or for certain high-load funds. (Short-Term Redemption Fees may apply). However, if you paid a fee to buy a fund, you will be charged Schwab's normal transaction fee to sell it as well. Schwab may change the funds we make available without transaction fees and reinstate fees on any fund. Schwab receives remuneration from participating fund companies.
When placing simultaneous orders to sell one or more transaction-fee fund(s) to purchase additional transaction-fee fund(s) with the proceeds, you'll pay standard fees on both transactions. These fees do not apply to Schwab Funds® or the other funds for which Schwab does not charge transaction fees.
Short-Term Redemption (STR) fee policy
A redemption fee of $49.95 will apply to redemption of funds purchased through Schwab’s Mutual Fund OneSource® service (and certain other funds with no transaction fee) and held for 90 days or less. Schwab reserves the right to exempt certain funds from this fee, including Schwab Funds®, which may charge a separate redemption fee, and funds that accommodate short-term trading.
This policy helps us better serve the interests of all our investors and makes it possible to provide funds without transaction fees. We encourage you to take full advantage of the cost-saving benefit of this service by following a long-term investing strategy.
Service handling fees
There is a $25 service-handling fee for trades in funds available through our Mutual Fund OneSource Service (including Schwab Funds) as well as certain other no transaction fee funds when the trade is placed over the phone or in person with one of our Financial Consultants. There is still no charge for trades in OneSource and other no transaction fee funds when the trade is placed through schwab.com or one of our automated phone services.
The impact of interest, capital gains and dividends on the purchase price
Mutual funds generally distribute three types of income to the fund’s shareholders:
Interest distributions: Paid out by most bond funds on a monthly basis.
Dividends: Paid out by most equity funds on a quarterly basis.
Capital gains: Paid out by most funds on an annual basis, usually near the end of the year.
These distributions are generally taxable to shareholders, if the fund is owned outside of a tax-deferred account. When the fund distributes interest, capital gains or dividends to shareholders, the fund's assets decrease by the amount distributed, and the NAV drops proportionally.
Whether in a taxable or tax-deferred account, when the fund's NAV drops due to these distributions the fund’s shareholders have not lost value, because they have received either a cash distribution or additional shares equal to the amount of the decrease in NAV. For example:
You own 1,000 shares of a fund with an NAV of $10.50 for a total value of $10,500.
The fund distributes a dividend of $0.50 per share and the NAV drops to $10.00.
You now own 1000 shares at $10.00 a share for a total value of $10,000.
And, you also have received either $500 as a distribution, or an additional 50 shares of the fund.
Keep in mind that whether you receive the interest, dividends or capital gains as a distribution or as additional shares, the distribution is a taxable event unless you own that fund in a tax-deferred account, or, in some cases, if the fund is a municipal bond fund. Municipal bond funds, however, may be subject to state and local taxes, and also the federal alternative minimum tax (AMT).
Note: If you are looking to purchase a fund close to a distribution date, it may be wise to wait until after the interest, dividend or capital gains distribution to avoid a potentially taxable event immediately after your purchase.
When buying or selling most mutual funds available through Schwab, a 4:00 p.m. ET cutoff time applies, and pricing will be calculated at the close of the same business day on which you placed your trade. In some cases, however, earlier cutoff times apply. Also note that in a few cases, a 9:00 p.m. ET cutoff time applies and pricing is calculated at the close of the subsequent business day. For specific information on the cutoff time for a particular fund, view the Fund Details page for that fund or call 800-435-4000. Please note that orders cannot be canceled or changed after the indicated cutoff time.
You can purchase most mutual funds on margin at Schwab. You can also borrow against the mutual funds held in your account. Schwab Funds cannot be purchased on margin, and are not marginable for 30 days from the date of purchase.
1. The Schwab MarketTrackPortfolios maintain a lower initial and subsequent purchase minimum. For details on these minimums please refer to the fund summary pages.
2. Transaction fees apply to open-end mutual funds only. Some funds may also charge sales and/or redemption fees. Please read the prospectus for details. You can buy shares directly from a fund company or its principal underwriter or distributor without paying Schwab’s transaction or service charge (except Schwab Funds®).
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