Schwab Announces Lower Trade Commissions, New ETF Managed Portfolios

The Charles Schwab Corporation today announced reductions in online equity trade commissions for both retail investors and its independent investment adviser clients.
Beginning January 19, Schwab retail investors will pay $8.95 per online trade in stocks or non-Schwab exchange-traded funds (ETFs). (Schwab ETFs already feature commission-free online trading through Schwab accounts.)

Schwab said the move is designed to provide greater value for investors of all sizes, regardless of the frequency or size of their trades. Currently, investors who held less than $1 million in household assets at Schwab or who traded fewer than 120 times per year paid $12.95 per trade plus charges for trades larger than 1000 shares.

The new pricing is also available to Schwab Advisor Services independent investment adviser clients who use Schwab’s E-Delivery services to receive electronic statements and trade confirmations, and to all clients who trade equities in a Personal Choice Retirement Account (PCRA), Company Retirement Account (CRA), or Plan Administrator Services account held at Schwab or through an account with Designated Brokerage Services, according to the firm.

Schwab also announced new managed portfolios of ETFs available January 19 through a low-cost, fee-based portfolio advisory program. Schwab said its Managed Portfolios-ETFs are made up of diversified ETF holdings representing up to 20 asset classes. The portfolios “make it easy and affordable for the individual investor to get access to broad diversification in a single account with the low cost that ETFs provide,” the firm said.