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Costs of Investing

Investing costs and fees matter—and you should always know what you're paying. At Charles Schwab, we make it easy for you to be an informed investor.

Stocks and Options

Trading commissions are your primary costs when investing in stocks and options.

  • Understanding stock and options costs.
  • Stock and options costs at Schwab.
  • Trade Commissions
  • Understanding stock and options costs.

    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.
  • Stock and options costs at Schwab.

    $0 for standard online stock and option trades1

    +

    $0.65 per options contract2

Get low-cost stock and options investing at Schwab.

View important information about stocks and options

View important information about stocks and options

Mutual Funds

The three costs to consider when investing in mutual funds are operating expenses, loads, and transaction fees.

  • Understanding mutual fund costs.
  • Mutual fund costs at Schwab.
  • Operating Expense Ratio (OER)
  • Understanding mutual fund costs.

    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.
  • Mutual fund costs at Schwab.

    Passively managed funds
    Schwab Funds®3
    OERs can range from 0.02%-0.39%*.
    Third-party passively managed mutual funds traded on US exchanges are also available. OERs vary from fund to fund.

    Actively managed funds
    Schwab Funds3
    OERs can range from 0.21%-1.92%*.
  • Load
  • Understanding mutual fund costs.

    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.
  • Mutual fund costs at Schwab.

    Schwab Funds
    $0
    No-load and load-waived funds that do not participate in Schwab Mutual Fund OneSource are also available, but transaction fees apply4.
  • Transaction Fee
  • Understanding mutual fund costs.

    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.
  • Mutual fund costs at Schwab.

    Schwab Funds
    $0

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

Mutual Fund Disclosure

*Source: CSIM. As of December 31, 2019.

View important information about mutual funds

View important information about mutual funds

Exchange-Traded Funds (ETFs)

The three costs to consider when investing in ETFs are operating expenses, commissions, and bid/ask spreads.

  • Understanding ETF costs.
  • ETF costs at Schwab.
  • Operating Expense Ratio (OER)
  • Understanding ETF costs.

    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.
  • ETF costs at Schwab.

    Passively managed ETFs
    Schwab ETFs5
    Expenses can range from 0.03%-0.39%*. Third-party passively managed ETFs traded on US exchanges are also available. OERs 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)
  • Understanding ETF costs.

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

    $0 online for all ETFs6, including Schwab ETFs.
  • Other Costs
  • Understanding ETF costs.

    Bid/Ask spreads and changes in discounts and premiums can also factor into your trade costs.
  • ETF costs at Schwab.

    Costs vary from fund to fund.

Save on ETFs with over 2,000 commission-free ETF choices.

ETF disclosure

*Source: CSIM. As of December 31, 2019.

ETFs disclosure

View important information about ETFs

Bonds

Your primary cost when investing in bonds is the price markup.

  • Understanding bond costs.
  • Bond costs at Schwab.
  • Price Markup
  • Understanding bond costs.

    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 costs at Schwab.

    $1 per-bond transaction fee for most secondary market bonds traded online ($10 minimum/$250 maximum)7.

Get the best bond prices available to Schwab.

Bonds disclosure

View important information about bonds

Portfolio Management Fees

Consider the annual fees when choosing a managed offer.

  • Understanding portfolio management fees.
  • Portfolio management fees at Schwab.
  • Annual Fees
  • Understanding 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.
  • Portfolio management fees at Schwab.

    Dedicated financial advice8
    Starts at 0.80% for Schwab Private Client™9

    (Fee rates decrease at higher asset levels)

Find the investment management solutions that are right for you.

portfolio management fees disclosure

View important information about portfolio management fees
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