Schwab Cuts Trade Fees - $9.95/unlimited shares
Tuesday May 25, 8:45 am ET
New Tiered Pricing Plus Expanded Access to $9.95 Trades
Additional Price Reduction for Schwab Institutional(R) Advisor Clients
SAN FRANCISCO, May 25 /PRNewswire-FirstCall/ -- The Charles Schwab Corporation (NYSE: SCH - News) today announced that in mid-June it will dramatically reduce pricing for online equity trades, offering $9.95 trades to clients with $1 million in household assets* at Schwab and lowering commissions to $19.95 for a wide range of additional clients. Price reductions will apply to Schwab retail clients as well as the majority of independent advisors and their clients served by Schwab Institutional. Schwab will also lower the threshold for no-fee access to its Schwab Independent Investing Signature(TM) service.
"For 30 years, Schwab has focused on offering the best possible products and services at prices designed to deliver a great value," said CEO David Pottruck. "We're reducing commissions for our most valued clients within Schwab Personal Choice(TM) by at least two-thirds, and for many others by over 30 percent, aggressively pricing our services to make sure they appeal to the broadest range of investors possible. We believe our unique combination of people, investing insight, tools and range of services -- all delivered at great prices -- makes Schwab an unbeatable value for anyone."
Retail Online Trading Costs Reduced
Reduced trading commissions for online equity trades will be available to individual investor clients based on either their household asset level or their trading activity, making lower-cost trades available to a wider range of Schwab clients.
-- $9.95 equity trades -- Clients with more than $1 million in household
assets at Schwab who are enrolled in Schwab Independent Investing(TM),
Schwab Signature Trading(TM), Schwab Advised Investing(TM) services or
Schwab Private Client(TM) will pay $9.95 per market or limit order
trade for unlimited shares (reduced from $29.95, or $.03 per share for
trades over 1,000 shares).
For active trader clients enrolled in Schwab Trader CT(TM), the
existing $9.95 commission now applies to orders of any size, no matter
how many shares are traded (eliminating the additional $0.01 per share
for trades over 5,000 shares). In addition, the number of monthly
trades required to waive the monthly fee has been reduced from
10 trades to five, and the monthly fee (when applicable) has been
reduced from $30 to $20.
-- $14.95 equity trades -- For clients who make at least 30 equity or
option trades in a quarter, online market or limit order trades will be
$14.95 per trade for unlimited shares (reduced from $.01 per share with
a $14.95 minimum).
-- $19.95 equity trades -- Online equity trade commissions for market or
limit orders will be reduced from $29.95 to $19.95 for the first
1,000 shares, plus $.015 cents per share thereafter, for:
-- Any client with at least $100,000 in combined household
assets at Schwab;
-- Schwab Independent Investing Signature clients;
-- Clients enrolled in Schwab Advised Investing services or
Schwab Private Client;
-- Clients enrolled in Schwab Independent Investing
Foundational(TM) who make between nine and 29 household
equity or option trades in a quarter; and
-- Clients enrolled in Schwab Signature Trading who make between
nine and 29 household equity or option trades in a quarter.
-- Flat pricing for trades of shares priced less than $1 per share -- The
$9.95, $14.95 and $19.95 tiered pricing will also apply to online
trades of penny stocks for unlimited shares (formerly 3 percent of
principal with an overriding minimum of $29.95).
For more information, investors can call 877-774-3888. |
