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Costs of Investing:
A Breakdown

It's not always easy to get a handle on your investing costs. Depending on where you invest, it might be difficult to get a good understanding of what the costs are and what investors might expect to pay for them. We believe it shouldn’t be that way. You should always know what you’re paying—and finding that information should be easy.

This breakdown will help you:

  • Understand common costs
  • See what you might pay elsewhere
  • Know what you could pay at Schwab

Stocks and Options

Stock and Options
What are the costs? What you might pay elsewhere With Schwab

Trade Commissions

Every time you buy or sell a stock or option, your brokerage company may charge you a trade commission. This includes costs for routing, executing, and clearing the trade.

$4.95 - $20.00

for standard online stock and option trades1

+

$0.65 - $1.00

per options contract1

$4.95

for standard online stock and option trades2

+

$0.65

per options contract3



Get low cost stock and options investing at Schwab.

Mutual Funds

Mutual Funds
What are the costs? What you might pay elsewhere With Schwab

Operating Expense Ratio (OER)

OERs are charged annually by the fund company, expressed as a percentage of a fund's average net assets. They cover the fund's management and other costs.

Passively managed funds are designed to track a specific market index and typically have lower costs (OERs) than actively managed funds that pay fund managers or management teams to make ongoing decisions on where a fund's money is invested.

Passively managed funds

The industry asset-weighted average OER for passively managed mutual funds is 0.08%.4

Passively managed funds

Schwab Funds®*,5

The asset-weighted average OER for passively managed mutual funds is 0.03%.6 OERs can range from 0.03%-0.39%.

Actively managed funds

The industry asset-weighted average OER for actively managed mutual funds is 0.71%.4

Actively managed funds

Schwab Funds*,5

The asset-weighted average OER for actively managed mutual funds is 0.69%.6 OERs can range from 0.3%-1.33%.

Load

When you purchase or redeem shares in certain load-based mutual funds, some fund companies charge you this one-time commission to compensate the broker for the sale.

Loads vary fund-to-fund. Look for the fund's load in its prospectus.

$0 for Schwab Funds* and any fund participating in Schwab's Mutual Fund OneSource® service.7

No-load and load-waived funds that do not participate in Schwab Mutual Fund OneSource are also available, but transaction fees apply.

Transaction Fee

When you purchase or redeem a mutual fund, your brokerage company may charge you a trade fee. This fee may also be used to compensate the brokerage in instances where it does not receive compensation from the fund.

Purchase

$0-$49.998

Redeem

$0-$49.998

Purchase

$09 online for Schwab Funds* and any fund participating in Schwab's Mutual Fund OneSource service.

Up to $49.95 for all other funds.

Redeem

$09 online for Schwab Funds* and any fund participating in Schwab's Mutual Fund OneSource service.

†Per-trade transaction fees do not exceed 8.5% of principal, up to $49.95. Trades below $100 in principal are exempt from the transaction fee.

*Schwab Funds are managed by Charles Schwab Investment Management and are included in the Schwab Mutual Fund OneSource service, which offers thousands of no-load, no-transaction-fee mutual funds.



Choose from 3,000+ no-load, no-transaction-fee mutual funds.

Exchange-Traded Funds (ETFs)

ETFs
What are the costs? What you might pay elsewhere With Schwab

Operating Expense Ratio (OER)

OERs are charged annually by the fund company, expressed as a percentage of a fund's average net assets. They cover the fund's management and other costs.

Passively managed funds are designed to track a specific market index and typically have lower costs (OERs) than actively managed funds that pay fund managers or management teams to make ongoing decisions on where a fund's money is invested.

Passively managed ETFs

The industry asset-weighted average OER for passively managed ETFs is 0.20%.10.

Passively managed ETFs

Schwab ETFs™*11

The asset-weighted average OER for passively managed ETFs is 0.05%.12 Expenses can range from 0.03%-0.13%.

 

Third-party passively managed ETFs traded on US exchanges are also available. OERs vary from fund to fund.

Actively managed ETFs

The OERs for actively managed ETFs vary from fund to fund.

Actively managed ETFs

Schwab offers third-party actively managed ETFs traded on US exchanges. OERs vary from fund to fund.

Trade Commission (online)

Your broker may charge you a trade commission each time you buy or sell an ETF.

$0-$2013 for online trades, depending on number of trades.

$0 online for Schwab ETFs and any ETF participating in the Schwab ETF OneSource™ platform.14

$4.95 for all other ETFs.15

Other Costs

Bid/ask spreads and changes in discounts and premiums can also factor into your trade costs. Learn more.

Costs vary from fund to fund.

Costs vary from fund to fund.

*About Schwab ETFs
Schwab ETFs are distributed by SEI Investments Distribution Co. and are included in the Schwab ETF OneSource platform, which is a selection of more than 250 ETFs available commission free online in your Schwab account. Schwab ETF OneSource covers 65 Morningstar categories spanning U.S. Equity, Fixed Income, and Commodity ETFs.



Save on ETFs with over 250 commission-free ETF choices.

Bonds

Bonds
What are the costs? What you might pay elsewhere With Schwab

Price Markup

Generally, this is the difference between the market price of the bond and the price at which it's sold to you, including transaction fees.

Bond pricing varies from firm to firm and is often quoted with markups bundled together with the purchase price.

$1 per-bond transaction fee for most secondary market bonds traded online ($10 minimum/$250 maximum).16



Get the best bond prices available to Schwab from more than 200 dealers.

Portfolio Management Fees

Portfolio Management Fees
What are the costs? What you might pay elsewhere With Schwab

Annual Portfolio Management Fees

If you choose to have your portfolio of investments professionally managed or to obtain advice for a fee, there may be additional periodic costs. Usually based on a percentage of your assets, the costs can vary depending on the level of assets held in your portfolio and the level of service you receive.

Keep in mind that you may also be paying investment costs specific to the underlying assets in your portfolio, such as ETF or Mutual Fund OERs and trade commissions.

Dedicated financial advice17

1.01% average advisory fee charged by full service brokers (negotiated basis).18

Dedicated financial advice17

Starts at 0.80% for Schwab Private Client™19

(Fee rates decrease at higher asset levels)

See all advice solutions available at Schwab.



Find the investment management solutions that are right for you.

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