For Clients of Independent Investment Advisors
April 2023
Please read this important information carefully.
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Pricing information in thisCharles Schwab Pricing Guide("Pricing Guide") is applicable to your Account(s) managed by an independent investment advisor and supersedes prior Pricing Guides you may have received. Charles Schwab & Co., Inc. ("Schwab") reserves the right to change or waive fees at our discretion. Please keep this Pricing Guide for your reference.
The most recent pricing information is available atschwab.com/aspricingguide.
Introduction
Schwab provides a broad range of value-added services, some of which have associated fees. This document provides you with an overview of standard pricing for commissions, transaction fees, and key account and service fees for:
- Accounts (including international accounts) that are managed by an independent investment advisor ("advisor") pursuant to a direct contractual relationship between you and the advisor.
- Accounts that are invested in Windhaven®, ThomasPartners®, or Wasmer Schroeder TM strategies managed by Schwab affiliate Charles Schwab Investment Management, Inc. ("CSIM") pursuant to a direct contractual relationship between you and CSIM.
The fees in this Pricing Guide are applicable to all account types listed above, unless otherwise stated.
Throughout this Pricing Guide, notations are marked with a number and can be found in the Endnotes section at the end of the Pricing Guide.
Corporate Executive Services and Stock Plan Services have pricing that can differ from the pricing contained in this Pricing Guide.
Definitions
Electronic Trades -Trades placed through one of our electronic channels, including online (e.g., www.schwaballiance.com or www.schwabadvisorcenter.com), Schwab Mobile, and automated phone services(e.g., Schwab by Phone™ or TeleBroker®). Certain securities may not be available through all electronic trading channels.
How Schwab determines account and household service fees and commissions is based, in part, on calculations that consider your Household Balance and activities.
Household Balance -Defined as the total combined value, over a given period of time, of the Accounts of Your Household, including margin balances and other outstanding debit balances like mortgages and home equity lines of credit (HELOCs). In order to determine if you qualify for any fee waivers, Schwab will add up your daily Household Balances for the applicable time period and then divide this total by the number of days in the period. For more details on how we determine Accounts of Your Household, please see the section entitled "Accounts of Your Household Explanation."
There are two standard types of pricing: (1)Basic Pricing and (2)Alternative Pricing. Both are described below. You can obtain more information about the pricing for your Account(s) by asking your advisor.
Each such advisor is referred to herein as your "Agent." Your Agent is not affiliated with, controlled by, or employed by Schwab.
Basic Pricing -Your Account(s) will have Basic Pricing unless your Agent has agreed with Schwab to Alternative Pricing or has otherwise requested Alternative Pricing where available.
Alternative Pricing- Pricing that has been agreed to by Schwab and your Agent or that is otherwise available to you upon your Agent's request.
Alternative Pricing rates are generally lower than the rates listed in the Basic Pricing schedules, but can be higher. In any case, Alternative Pricing rates will not exceed the highest Alternative Pricing rates listed in this document. Schwab reserves the right, but has no obligation, to negotiate Alternative Pricing with your Agent.
The terms of Alternative Pricing can relate to any one or more of the following: commissions; account, transaction, and service fees that clients and/or advisors pay to Schwab; and/or credits, rebates, and cash payments that are made to clients and/or advisors.
The terms of Alternative Pricing that apply to you can be based upon the nature and scope of business that your advisor transacts with Schwab, including the current and expected future amount of your advisor's client assets that are custodied at Schwab, the types of securities in your advisor's client accounts, and/or the expected frequency of your advisor's trading. Alternative Pricing terms also consider research and other products and services that Schwab provides to your advisor and/or whether your advisor declines to pay service fees to Schwab, such as in cases where an advisor's aggregate client assets at Schwab do not meet a certain threshold. As a result, the commissions, fees, credits, rebates, and payments for your Account(s) held with your advisor can be higher or lower than those of other clients of your advisor and/or those of clients of other advisors. Schwab may change this pricing if the nature and scope of business that your advisor transacts with Schwab changes or does not reach agreed-upon levels or if your advisor declines to pay service fees to Schwab. In any of these cases, the pricing for your advisor's client accounts, including your Account(s), may increase to an amount determined by Schwab that will not exceed the highest Alternative Pricing rates listed in this document. Should such an increase in pricing occur, Schwab will notify your advisor, as your Agent, of the increase. Unless the increase exceeds the highest Alternative Pricing rates listed in this document, Schwab will not notify you directly.
Schwab may provide certain advisors, at no fee or at a discounted fee, with research, software, technology, information and consulting services, and other products and services that benefit the advisor but that may not necessarily benefit client Account(s). Schwab's provision of these products and services to the advisor may be based upon a commitment that the advisor makes to Schwab regarding the amount and type of assets that the advisor's clients place in their brokerage accounts at Schwab (i.e., custodying assets at Schwab) within a certain period of time. The advisor's decision to make such a commitment to Schwab, as well as the advisor's receipt of these products and services, may cause the advisor to recommend or require that clients maintain brokerage accounts at Schwab, and could also influence the advisor's recommendations or decisions about which investments to purchase or sell for client Account(s). If your advisor participates in this type of arrangement, this is a conflict of interest. If you have any questions, you should discuss them with your advisor.
Commissions, Transaction Fees, and Handling Fees1
U.S. Exchange-Listed Securities per Executed Trade*
| Electronic Trades | $0 |
| Broker-Assisted Trades | $25 |
*Limited to National Market System (NMS) Equity Securities (excluding standardized options, which are subject to separate pricing).
Trades executed at Schwab requiring special handling, including, but not limited to, Delivery versus Payment (DVP) Trades, Early Settlement Trades, and Restricted Stock Trades, will be charged the broker-assisted rate per executed trade.
Note: For Equity New Issues (Primary and Secondary Offerings), a selling concession is included in the offering price.
Transactions in Non-NMS Securities
U.S. Over-the-Counter (OTC) Securities Market per Executed Trade
| Electronic Trades | $6.95 commission |
| Broker-Assisted Trades | $31.95: electronic commission plus $25 |
Canadian Stock Transactions
| Electronic Trades | $6.95 |
| Broker-Assisted Trades | $31.95: electronic commission plus $25 |
Foreign Stock Transactions†
| Trades placed on the U.S. over-the-counter (OTC) market | |
|---|---|
| Electronic Trades | $50.00 foreign transaction fee |
| Broker-Assisted Trades | $75: electronic foreign transaction fee plus $25 |
Trades placed directly on a foreign exchange
| Trades placed directly on a foreign exchange | |
|---|---|
| Electronic Trades | $50 foreign transaction fee |
| Broker-Assisted Trades | $75: electronic foreign transaction fee plus $25 |
†These fees apply to trades of foreign ordinary shares placed directly on a foreign exchange or on the U.S. over-the-counter (OTC) market.
Trades executed at Schwab requiring specialhandling, including, but not limited to, Delivery versus Payment (DVP) Trades, Early Settlement Trades, and Restricted Stock Trades, will be charged the broker-assisted rate per executed trade.
Non-U.S. ETFs are available for eligible non-U.S. residents as broker-assisted trades, subject to a $50 transaction fee. For non-U.S. ETF orders, please contact your independent investment advisor, or call the Global Services team from inside the U.S. at 1-800-992-4685 and from outside the U.S. at +1-415-667-8400.
Stock Borrow Fees for Short Selling
For certain securities, if you have an open order or open short position in your Account, whether it is established through short selling, option exercise or assignment, account transfer, or otherwise, Schwab can charge a Stock Borrow Fee. The fee is calculated as the end of day short market value, multiplied by the quoted interest rate, divided by 360. This Stock Borrow Fee is subject to change on a daily basis and can be charged as long as you hold the open short position. The aggregate monthly Stock Borrow Fee will appear on your account statement. The interest rate charged will vary depending on the supply and demand for the particular security in the securities lending market. Schwab can seek to charge you any rate consistent with Schwab's view of competitive necessities.
Mutual Funds2
Mutual Fund No-Transaction-Fee (NTF) Funds
Trade orders in no-load funds available through the Mutual Fund OneSource®service (including Schwab Funds®), as well as certain other funds, are available with no transaction fees.
Mutual Fund No-Transaction-Fee Funds
| No-Transaction Fee Funds (including funds available through the Mutual Fund OneSource® service) |
|---|
| Electronic Trades $0 |
| Automatic Investment Plan (AIP) Trades $0 |
| Short-Term Redemption Fee (‡) $49.95 |
‡Schwab's short-term redemption fee will be charged on redemption of funds purchased through Schwab's Mutual Fund OneSource service (and certain other funds with no transaction fees) and held for 90 days or less. Schwab reserves the right to exempt certain funds from this fee, including Schwab Funds, which can charge a separate redemption fee, and funds that accommodate short-term trading.
Mutual Fund Transaction-Fee Funds‡‡
| Transaction Fee | Reduced Transaction Fee* | |
|---|---|---|
| Electronic Trades: | $45 | $24 |
| Broker-Assisted Trades: | $65 | $45 |
| Automatic Investment Plan (AIP) Trades** | N/A | $10 |
‡‡Per-trade mutual fund transaction fees are capped at 8.5% of principal regardless of channel.
*Certain transaction-fee funds are eligible for areduced transaction fee. Generally, mutual fundsare eligible for reduced transaction fees where thefunds or their affiliates pay Schwab forrecordkeeping, shareholder, and otheradministrative services we provide. Please contactyour independent investment advisor directly or callSchwab Alliance at 1-800-515-2157 for moreinformation.
**AIP transaction fees only apply to AIP-enrolled mutual funds. For applicable mutual funds, a transaction fee of $10 capped at 8.5% of principle will apply to each buy and sell. Automatic Investment Plan (AIP) is a service intended to facilitate systematic mutual fund purchases and liquidations. The program is not designed for non-systematic or one-time purchases/redemptions of mutual fund positions. Schwab reserves the right to apply standard transaction fees to instructions established in AIP if Schwab determines in its sole discretion that the AIP program is being used outside the scope for which it was designed. Please contact your independent investment advisor directly or call Schwab Alliance at 1-800-515-2157 for more information.
Mutual fund interclass exchange transactions will be subject to a transaction fee if the transaction on either side (purchase or redemption) of the interclass exchange involves a transaction-fee fund; the fee will be calculated pursuant to the transaction-fee mutual fund pricing schedule set forth above. If the fund on either side (purchase or redemption) of the interclass exchange is a no-transaction-fee fund, that side of the exchange will not be subject to a transaction fee but can be subject to a $25 service charge if the interclass exchange transaction was placed through a broker.
Other Information for All Mutual Fund Transactions
Some funds also charge sales and/or redemption fees. Please read the prospectuses for details. You can buy shares directly from a fund company or its principal underwriter or distributor without paying Schwab's transaction or service charges (except where Schwab is also acting in the capacity of a principal underwriter or distributor with respect to affiliated funds).
Options
Electronic Trades
Electronic Trades
| Executed Contracts | Basic Pricing |
|---|---|
| All | $0 base commission, $0.65 per-contract fee |
Broker-Assisted Trades
Broker-Assisted Trades
| Executed Contracts | Basic Pricing |
|---|---|
| All | $25.00 base commission plus $0.65 per-contract fee |
Alternative Pricing for each executed trade will not exceed the greater of:
- $6.25 per contract, or
- 2% of principal, or
- $43.95 minimum per leg
Fixed Income Investments3
Schwab reserves the right to act as principal on any fixed income transaction, public offering, or securities transaction. When Schwab acts as principal, the bond price includes our transaction fee (outlined below) and can also include a markup that reflects the bid-ask spread and is not subject to a minimum or maximum. When trading as principal, Schwab may also be holding the security in its own account prior to selling it to you and, therefore, may make (or lose) money depending on whether the price of the security has risen or fallen while Schwab has held it. When Schwab acts as agent, a commission will be charged on the transaction.
For accounts (including international accounts) managed by an advisor that are enrolled with Schwab, the following rates apply:
Fixed Income Investments
| Product Type | Online Pricing | Broker-Assisted Pricing |
|---|---|---|
| Treasuries at auction and secondary Treasuries, including Treasury bonds, Treasury bills, Treasury notes, and TIPS | $0 | $25 |
| Government agencies, including non-pass-through bonds from FNMA, FHLB, etc. | $0.20 per bond ($10 minimum/ $250 maximum) | $0.24 per bond ($10 minimum/ $275 maximum) |
| Other secondary market fixed income trades, including CDs, corporate bonds, municipal bonds, zero-coupon Treasury bonds, and STRIPS | $1 per bond ($10 minimum/ $250 maximum) | $1.20 per bond ($10 minimum/ $275 maximum) |
| New issues, including certificates of deposit4 | Selling concession is included in the original offering price. | Selling concession is included in the original offering price. |
| Commercial Paper, Foreign Bonds, Asset-Backed Securities, Mortgage-Backed Securities, Collateralized Mortgage Obligations, and Unit Investment Trusts | These are specialty products—please call us for information. | These are specialty products—please call us for information. |
| Preferred equity or debt or REITs | Stock commissions and minimums apply for secondary market transactions. | Stock commissions and minimums apply for secondary market transactions. |
Trades placed through a Schwab Alliance or Schwab Investor Services representative will be charged an additional $25 broker-assisted fee and will be subject to a $35 minimum and a $275 maximum. Trades for new issues placed through a broker are not subject to these premiums.
Note: Our commissions and markups can be slightly less than our published schedule shown above due to rounding.
Alternative Pricing minimums will not exceed $60.
Large TransactionsContact a Schwab Bond Specialist or your advisor for orders of more than 250 bonds. These orders can be eligible for special handling and/or pricing.
Fixed Income Directed Trades
A Directed Trade occurs when an advisor is shown a bid or offer by a broker-dealer other than Schwab and subsequently requests that Schwab execute the trade with the contra broker-dealer for a designated Schwab account. Schwab will confirm the transaction with the contra broker-dealer and send a trade confirmation to the client. The fee for a Directed Trade is $50 per trade or trade allocation.
Prime Brokerage, Trade-Away, and Step-In Trades
Prime Brokerage, Trade-Away, and Step-In trades are designed to give you and your advisor the ability to execute trades using assets held in your Account(s) at broker-dealers other than Schwab, known as "Executing Brokers." Schwab charges $25 per trade allocation for Prime Brokerage, Trade-Away, and Step-In trades.
Note: There can be other fees charged by the Executing Broker.
Account Activity Fees
Account Activity Fees
| Fee | Amount |
|---|---|
| Order out of physical certificates (for all U.S. and some Canadian securities) if held in physical certificate form prior to order out | $100 per certificate. Additional charges can apply for rush requests. |
| Order out of certificates (for foreign securities): Physical certificates | Variable fee (based on the location of the transfer agent) |
| Security reorganization: Voluntary, mandatory and post-effective | $0 |
| Full transfer (out) of assets | $50 per account |
| Transfer of title for certificates5 | $25 per position |
Cashiering Fees
Cashiering Fees
| Fee | Amount |
|---|---|
| Check order fee | No charge for standard checks |
| Overnight fee | $8.50 |
| Nonsufficient funds/ returned item | $25 per item |
| Wire transfer (outgoing)6 | $25 per transfer; $0 per transfer if electronic channel is used |
Custody Fees for Non-Publicly Traded Securities
Custody Fees for Non-Publicly Traded Securities
| Description | Amount |
|---|---|
| Annual custody fee for Non-Publicly Traded Securities7 | $250 per position Maximum of $500 per account |
Service Fees
Exchange Process Fee
This is a fee Schwab charges to offset fees imposed on us directly or indirectly by national securities exchanges, self-regulatory organizations, or U.S. option exchanges. Schwab shall have the right to determine the amount of such fees in its reasonable discretion, and such fees may differ from or exceed the actual third-party fees properly paid by Schwab in connection with any transaction. These differences may be caused by various internal and external factors, including, among other things, the rounding methodology used, the use of allocation accounts, transactions or settlement movements for which a fee may not be assessed, timing differences in changes, third-party rate caps and floors, calculation errors, and various other anomalous reasons.
The Securities and Exchange Commission (SEC) assesses transaction fees on national securities exchanges and self-regulatory organizations based on the aggregate dollar amount of the sales of certain securities. The SEC recalculates the amount of this fee periodically—at least once per year, but sometimes more often.
National securities exchanges and self-regulatory organizations offset the transaction fees by charging their member broker-dealers such as Schwab, and we, in turn, offset this fee by charging you an Exchange Process Fee for covered transactions.
U.S. option exchanges charge Schwab and other broker-dealers per-contract fees for purchases and sales of exchange-listed options. The exchanges may charge these fees even on transactions executed on other exchanges, which can result in multiple fees being imposed on Schwab for a single transaction. Any Exchange Process Fee that appears on your trade confirmation for a sale of an exchange-listed option will combine the offsets for the fees charged by the U.S. option exchanges, national securities exchanges, and self-regulatory organizations.
Schwab's Exchange Process Fee will rise or fall periodically depending upon the rates set by the SEC self regulatory organizations, or by the U.S. option exchanges, as applicable.
Exchange Process Fee for American Depositary Receipts (ADR)
This is a fee Schwab charges to offset fees imposed on us by executing brokers. It is associated with transaction taxes assessed by certain governments as a percentage of the purchase amount on certain securities, and the rate is subject to change. The fee will appear as an "Exchange Process Fee" on your trade confirmation.
American Depositary Receipt (ADR) Pass-Through Fees
Banks that custody ADRs ("ADR agents") are permitted to charge ADR holders fees. An ADR agent is authorized under its agreement with the issuer to impose a fee on holders of the issue. Fees collected from Schwab by the Depository Trust Company (DTC) for an ADR will be automatically passed through to those ADR holders. They will be deducted from your Schwab Account(s) and shown on your statement(s) as "ADR Pass-Thru Fee." Amounts and timing differ by ADR.
Accounts of Your Household Explanation
"Accounts of Your Household" are accounts that have been linked in accordance with Schwab's householding guidelines. Schwab makes a reasonable effort to automatically link qualified accounts of persons with the same last name at the same home address, including accounts held at certain Schwab affiliates.
Schwab aggregates the balances and activities of Accounts of Your Household to determine the following for brokerage accounts: commission rates, whether those accounts may qualify for certain fee waivers, and whether those accounts may qualify for certain benefits or features ("Household Calculations").
Schwab may consider other accounts to be in your household upon your request if account holders are in the same family, if there is a dependent relationship, or in certain other similar instances at Schwab's discretion. You are responsible for identifying accounts that should be linked for purposes of determining Accounts of Your Household and Household Calculations. For example, if you or other members of your family who reside at your home address have a different last name (including a spouse, if applicable), you need to contact Schwab to request that we combine your accounts for purposes of Household Calculations. If an account is added to Accounts of Your Household, any impact on Household Calculations may not take effect until the following quarter.
Rules Applicable to Fiduciary Accounts
IRA, Custodial, and certain Trust accounts that meet Schwab's householding guidelines generally will be included in Household Calculations. If you have an IRA, Custodial, or Trust account and you are acting in a fiduciary capacity, it is your responsibility and not Schwab's to consider whether it is appropriate to consider the balances and activities of that account in Household Calculations, which could benefit the fiduciary account and/or other Accounts of Your Household. You must contact Schwab to request that the balances and activities of your fiduciary account not be included in Household Calculations if you determine that it is not appropriate. If you have a 403(b)(7), Company Retirement Account (CRA), Qualified Retirement Plan (QRP), or Keogh account (collectively, "Retirement Plan Account"), it is not included in Household Calculations. However, for certain services, the account holder of the Retirement Plan Account acting as fiduciary may elect to include the Retirement Plan Account in Household Calculations by providing Schwab with written instructions to do so. Please contact your advisor for the required form.
Schwab Sales Compensation Disclosure
Schwab offers investment products and services to you through your advisor. Schwab sales representatives may communicate the availability of these products and services to your advisor and/or negotiate associated pricing for your Account(s) with your advisor. These representatives also can receive incentive compensation from Schwab based on factors that include revenue generated on assets of your advisor's clients at Schwab, and from time to time receive incentive compensation related to specific types of investment products in which your advisor's client assets are invested. Schwab's offer of these products and services is part of its brokerage service and is not investment advice. The management of your Account(s), including the determination of your investment objectives, financial position, and investments for your Account(s), is between you and your advisor, and not Schwab.
Inquiries or Questions
Please contact your independent investment advisor directly, or call Schwab Alliance at1-800-515-2157.
International account holders, please call1-877-714-5308, or contact your advisor for further information.
Endnotes
1Excluding mutual funds, commissionable trades that execute over more than one day will be charged a separate commission for each additional day; each separate commission will apply to the portion of the trade executed on the corresponding additional day. Electronic orders where price or quantity is changed by the client and as a result execute over multiple trades on the same day are each charged a separate commission.
2For exchange-traded funds, refer to the stock schedule. For offshore funds (for non-U.S. persons), visitwww.schwab-global.comor call Schwab International Services for details:1-877-686-1937(inside the U.S.),+1-415-667-8400(outside the U.S.).
3For fixed income trades placed through one of Schwab's electronic channels, discounts may apply.
4Schwab receives a fee from the depository institution.
5Formerly estate processing fee—reregistering securities held in certificate form.
6Wire transfers using electronic channels include only those initiated onwww.schwaballiance.comor on Schwab Mobile, and those initiated by your investment advisor onwww.schwabadvisorcenter.comthrough the Move Money tool. Not all wire transfers are eligible to be initiated through electronic channels. Wire transfer fees can be avoided by using certain automated services, such as Schwab MoneyLink®, or by using Schwab One®checkwriting services.
7Custody fees for Non-Publicly Traded Securities are billed annually in arrears. Certain Non-Publicly Traded Securities may be exempt from certain fees. Non-Publicly Traded Securities include (list is subject to change and not exhaustive): promissory notes; church bonds; limited partnerships; private limited partnerships; limited liability companies; private common, preferred, and convertible preferred stock; private bonds; private warrants; private placements; and private REITs.
Independent investment advisors are not owned by, affiliated with, or supervised by Charles Schwab & Co., Inc. ("Schwab"). Certain investment advisors, such as Charles Schwab Investment Management, Inc. ("CSIM"), Charles Schwab Investment Advisory, Inc. ("CSIA"), and Schwab Wealth Advisory, Inc., are affiliated with Schwab.
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