Choosing A Broker: Charles Schwab
July 31, 2009 by Tisa Silver
Filed under Finance
Today, I will continue my coverage of the discount brokers by introducing Charles Schwab.
As always, remember: the level of services you need will help you decide whether to go with a full-service broker or a discount broker.
Photo by Joe Shlabotnik, courtesy of flickr
How To Trade: Charles Schwab offers online, telephone and broker-assisted trades. Schwab also offers Managed Accounts to investors who want professional asset management for their portfolios.
Schwab offers cash and margin accounts. Schwab also offers brokerage and retirement accounts, as well as educational (529 and ESA) and estate accounts.
Commissions: Stock commissions depend on the number of trades per year (relative to 120), the number of shares per transaction (relative to 1,000) and the amount of assets held with Schwab (less than or greater than $1,000,000). View the schedule here.
No trades will cost more than $12.95, as long as there are less than 1,000 shares involved. Active traders can pay a $8.95 commission for placing thirty (30) or more trades per quarter. Phone trades cost $5 more than online trades, and broker-assisted trades carry an additional $25 fee.
Account Minimum: There is a minimum of $1,000 required to open an account. The minimum can be waived for investors who transfer $100 into their accounts monthly via Schwab MoneyLink (a plan for automatic contributions). A minimum of $5,000 in cash or marginable securities is required to begin borrowing.
For more information on investing with Charles Schwab visit the company’s Investing page. For reviews, visit Barron’s, J.D. Power & Associates and the SmartMoney Annual Broker Survey.
Earlier this week, I covered TD Ameritrade, E*Trade, Scottrade and ShareBuilder. There are many other brokers to consider such as TradeKing, Zecco Trading, WellsTrade, and SoGoTrade, just to name a few.
Most of the prices quoted in my posts were applicable to buying and selling stock. For funds and options trading, visit each broker’s fee and commission schedules to find the appropriate trading costs.
Disclaimer: Brokerage commissions are subject to change, explore them yourself by visiting the broker’s web site or calling customer service for up-to-date information BEFORE you place any trades. The prices provided within this post were compiled on 7/27/09
