Schwab eliminates commissions

Good news for P&A clients!  Effective October 7, 2019, Charles Schwab is eliminating trading commissions on U.S.-listed stocks and exchange-traded funds (ETFs) for trades placed online (mobile or web trading).

Schwab had been charging $4.95 per trade on U.S. stocks and some ETFs for clients who received their statements and confirms electronically, and $12.95 for those clients who preferred paper statements.

This race to zero has been in the works for some time, and Schwab has always been a low-cost investment pioneer.  Here’s a quick look at recent changes to trading commissions by Charles Schwab:

  • January 19, 2010 – Schwab reduces commission rate from $12.95 to $8.95 per trade.
  • February 3, 2017 – Schwab reduces commission rate from $8.95 to $6.95 per trade.
  • March 3, 2017 – Schwab reduces commission rate from $6.95 to $4.95 per trade.
  • October 7, 2019 – Schwab eliminates commissions on U.S.- & Canadian-listed stocks, ETFs, and options.

“From day one, my passion has been to make investing easier and more affordable for everyone,” said Charles Schwab, the company’s chairman and founder, in a statement. “Eliminating commissions ensures my ultimate vision is realized — making investing accessible to all.” (CNN.com – 10/1/2019)

Here is the official press release from Charles Schwab announcing this move.

Click here to download the PDF Version of this article.

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