I started Schwab because I saw an opportunity to change the status quo for investors. In the 1970s, long before the internet gave rise to online trading, individual investors faced complex pricing schemes that ended up costing a pretty penny. The deregulation of brokerage commissions in 1975 changed all that: While some firms raised the fees they charged individual investors, we took the opportunity to lower ours.
I’ve always believed in the value of simple, low pricing—a conviction that continues to underpin all Schwab does as a firm. We offer standard online low-cost equity trades at just $4.951—regardless of the size of your account. We also offer the lowest-cost market-cap index mutual funds and exchange-traded funds (ETFs) with no minimums2—whether you’re investing one dollar or a million. If you have questions about our pricing or would like to compare our fees to those of other firms, give us a call or visit schwab.com/indexfunds. We pride ourselves on our competitive pricing, and we’d be happy to discuss how even minor differences in fees can significantly impact your returns over time.
Charles R. Schwab
Founder & Chairman
1Restrictions apply: The $4.95 standard online equity commission does not apply to certain transactions. See schwab.com/pricing for details.
2This claim is based on prospectus net expense ratio data comparisons between Schwab market-cap index mutual funds and ETFs and non-Schwab market-cap index mutual funds and ETFs in their respective Lipper categories. Schwab operating expense ratios (OERs) and competitor net OERs represent the lowest OERs reported from prospectuses and Strategic Insight Simfund, as reflected on 07/31/2017. Funds in the same Lipper category may track different indexes, have different holdings and perform differently. Competitors may offer more than one index mutual fund or ETF in a Lipper category, including funds that are not market-cap index funds. Expense ratios and minimums are subject to change, and ETFs require an investment of at least one share.