Charles Schwab to Reduces Brokerage Fees

I recently learned that Charles Schwab is reducing the price of trades through their online brokerage to a flat rate of $8.95/trade. The new commission structure goes into effect on January 19th, and applies to all customers regardless of portfolio size, trade frequency, or number of shares transacted.

While Schwab still trails some discount brokers (e.g., TradeKing @ $4.95/trade), they’re well ahead of others (e.g., E*Trade @ $12.99/trade). When combined with their very low mutual fund investment thresholds, this change makes Schwab a fairly attractive option for people who are just starting out.

3 Responses to “Charles Schwab to Reduces Brokerage Fees”

  1. Anonymous

    I’m very happy about all the latest changes going on with Schwab. I’ve been a customer of theirs for about 15 years.

    The things they are going lately have me very pleased. It use to be that they had complex fee structures, but they have both reduced and simplified them.

    It’s good to see them returning to their roots!

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