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Schwab: Just Say No Accounts*

Schwab say no t

Finally, a stock brokerage account where you don’t get charged a ton of fees or high commissions.

The claims: (1) Our commission prices start as low as $9.95  (2) Just say no to account service fees.

*MOUSE PRINT: (1) “$9.95 trade pricing is for clients who have $1 million in qualifying household assets or trade at least 30 times a quarter.”  (2) “Accounts exempt from account service fees are subject to a minimum balance charge of $30 per quarter for brokerage accounts … [if after notice] … assets remain below… $2500.” [US News, April 3, 2006]

I think Charles Schwab is just saying no to little accounts (under $1 million) with respect to the advertised commission rate, and does not consider a “minimum balance charge” to be an “account service fee.”

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5 thoughts on “Schwab: Just Say No Accounts*”

  1. I wish there was a law against this kind of crap. Most Americans aren’t smart enough to figure this out on their own. It’s sad that a company like Scottrade with no strings attached pricing would lag behind a fraud like schwab.

  2. I actually had an account with them (not this kind), and over a year, their rates changed twice. I didn’t trade much and eventually my balance fell under the minimum. It seemed hawkish that they’d increase service fees at that point.

  3. If you want a reputable company that has absolutely no fees other single individual buy/sell commission fees of a flat rate of $7 (i think) go with Scottrade.com

  4. Think this is bad? Try Wachovia. My wife had an IRA with these folks. $50 annual fee and $29.95 for each trade! Since I was going to use the account for day trades we, naturally, switched to Ameritrade. No fee and $9.95 a trade. On top of it her broker had “suggested” she invest in certain funds over the year. Being the independant type she listened – annual gowth of 3% over 10 years. I’m not an “expert” but could realize these were dogs desined to inflate his wallet. End result? She made a 30% return on this year so far.

  5. I concure with Chris – I have been using Scottrade for over seven years and my only fee is $7.00 per trade. No size limits or other restrictions. For shares trading for less than $1.00 there is an slight extra fee. Also they pay interest for any cash held in your account.

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