Charles Schwab adds trading fee to offset Finra costs (2024)

IAN WENIK, CITYWIRE RIA

Editor’s Picks

Private Equity Feb 07, 2024

Revealed: How Sanctuary helped seed a private credit fund run by its financial backer

Feb 29, 2024

DeVoe: 'The looming succession crisis ... may very well be upon us'

Private Equity Feb 28, 2024

Are RIAs recommending funds from their private equity owners? Large acquirers weigh in

Etfs Feb 28, 2024

RIAs plan to use active ETFs more often: study

executive changes Feb 27, 2024

Exclusive: Liz Nesvold joins RIA minority investor Emigrant Partners

Mar 21, 2023

The discount brokerage has begun charging its clients fractions of cents on their equities and options trades.

By Andrew Foerch

Twitter Facebook Linkedin WhatsApp >print comments

Charles Schwab last week began charging clients a ‘trading activity fee’ on sales of equities and options contracts.

The trading activity fee is levied by Finra on registered member firms as a means to recover some costs of the organization’s supervision and regulation activities, including ‘performing examinations, financial monitoring, and Finra’s policy, rulemaking, interpretive, and enforcement activities,’ according to Finra’s bylaws. It is one of the three core regulatory fees that comprise the bulk of Finra’s funding. Member firms self-report the trading data used to calculate the fee each month.

The fee rates charged by Finra are $0.000145 per share on sales of equities and $0.00244 per contract on sales of options. Historically, Schwab has paid these fees for its clients. As of Monday, March 13, the company began charging its clients an equal fee to offset these costs.

To continue reading, register for a free Citywire account

By clicking Register you agree to our .
Our privacy policy is available to read at any time here.

To read this article please sign in

Don't have an account?

Twitter Facebook Linkedin WhatsApp >print comments

Show and add comments

Please sign in or register to comment. It is free to register and only takes a minute or two.

Existing clients will retain their discount through the RIA's Milestone Rewards program for long-term clients, but new clients will not have access to the offering that cut fees for clients who remained with the firm for at least three years.

Regulation Mar 11, 2024

CFP Board comes out swinging in favor of DOL's new fiduciary rule

By Payton Guion

Regulation Mar 11, 2024

Tamp fined for failure to disclose fees from ETFs

By Jake Indursky

Financial Planning Mar 11, 2024

Niche of the Week: Entrepreneurs and career changers

By Reagan Darrah

Layoffs Mar 11, 2024

Fidelity Investments lays off 700 employees

By Eva Thomas

executive changes Mar 11, 2024

AdvicePay CEO out after seven months, Alan Moore to return

By Andrew Foerch

Mar 11, 2024

Shareholders approve long-delayed merger between B-D aggregator Wentworth and SPAC

By Ian Wenik

IAN WENIK, CITYWIRE RIA

Editor’s Picks

Private Equity

Revealed: How Sanctuary helped seed a private credit fund run by its financial backer

DeVoe: 'The looming succession crisis ... may very well be upon us'

Private Equity

Are RIAs recommending funds from their private equity owners? Large acquirers weigh in

Etfs

RIAs plan to use active ETFs more often: study

executive changes

Get the latest news in your inbox

By clicking Sign up you agree to our .
Our privacy policy is available to read at any time here.

Opinion & Analysis

The Gavekal Angle Story By Louis Gave

The Gavekal Angle: Gold now rises in the East

You need to watch the action in Mumbai and Shanghai, not New York.

Opinion

Joe Duran: Keys to success in ‘phase three’ of wealth management's evolution

From Kitces.com

Kitces.com: How RIAs can measure their marketing and sales effectiveness

Fund Flows

Are bond funds back or is it all just Pimco Income?

T. Rowe star David Giroux: ‘Playing the same game as everyone else ... is a losing game’

Opinion

Six ways venture capital might evolve as alts go mainstream

Fund analysis

What's in the BOXX? A closer look at the $1bn ETF tipped to give munis a run for their money

Better Business

Financial Planning Story By Reagan Darrah

Niche of the Week: Entrepreneurs and career changers

Craig Robson, managing director of Atlanta-based Regent Peak Advisors, discusses how his firm helps mitigate risk for clients looking to make changes in their professional lives.

Opinion

Passive investing, Marxism and the devil within lifecycle strategies

Financial Planning

Niche of the Week: Veterinarians

From Kitces.com

Kitces.com: How advisors can deploy advanced ChatGPT in their practices

Financial Planning

The median financial planner earned nearly $200k in 2022: CFP Board

Model Portfolios

My Model Portfolio: Cushioning the falls with puts and calls

Tax

Edelman to ditch tax preparation service

Connect

photo gallery Story By Citywire RIA

Photo gallery: Citywire RIA Austin 2023, day 2

Another selection of the best pictures from Citywire RIA's CIO Summit in Austin, Texas.

photo gallery

Photo gallery: Citywire RIA '50 Growers' award ceremony

photo gallery

Photo Gallery: Citywire RIA Austin 2023, Day 1

Photo Gallery: Citywire RIA Washington 2023, Day 2

Photo Gallery: Citywire RIA Washington 2023, Day 1

Citywire RIA celebrates International Women's Day: Female role models

Citywire RIA celebrates International Women's Day: Decompressing

ETFS

Regulation Story By Jake Indursky

Tamp fined for failure to disclose fees from ETFs

3D/L agreed to pay more than $250k in fines and notify affected investors.

fund files

ETF Files: BlackRock files for active large cap ETF; Roundhill, Cahill launch new strategies

Fund Flows

Tech stocks and bitcoin bolster ETF flows in February

fund files

Fund Files: New York Life drops Wellington on mid-cap fund, Nuveen launches four active ETFs

fund files

ETF Files: Cambria waives fees, Pimco attempts first fund-to-ETF conversion, Simplify looks to India

Publications

Due Diligence Report 2024

This special report charts the evolution of the active ETF market and looks at where it will go next.

Discover all publications

Fix The Future

RIA launch

Women-led Expressive Wealth launches with $200m in AUM

Regulation

SEC committee approves recommendations on AI proposal

food production

Five stocks top investors are backing to profit from sustainable food

More Fix The Future

Charles Schwab adds trading fee to offset Finra costs (2024)

IAN WENIK, CITYWIRE RIA

Editor’s Picks

The discount brokerage has begun charging its clients fractions of cents on their equities and options trades.

To continue reading, register for a free Citywire account

To read this article please sign in

Leave a comment

Existing clients will retain their discount through the RIA's Milestone Rewards program for long-term clients, but new clients will not have access to the offering that cut fees for clients who remained with the firm for at least three years.

IAN WENIK, CITYWIRE RIA

Editor’s Picks

Get the latest news in your inbox

Opinion & Analysis

You need to watch the action in Mumbai and Shanghai, not New York.

Better Business

Craig Robson, managing director of Atlanta-based Regent Peak Advisors, discusses how his firm helps mitigate risk for clients looking to make changes in their professional lives.

Connect

Another selection of the best pictures from Citywire RIA's CIO Summit in Austin, Texas.

ETFS

3D/L agreed to pay more than $250k in fines and notify affected investors.

Publications

Fix The Future