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By Javier Simon editors@plansponsor.com | February 02, 2017
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Charles Schwab Lowers Trade Commissions and Index Fund Fees

Charles Schwab announced that beginning February 3, 2017, it will reduce its standard online equity and exchange-traded fund (ETF) trade commissions from $8.95 to $6.95. Effective March 1, 2017, Charles Schwab will lower expenses for Schwab market cap-weighted index mutual funds to align with their Schwab ETF equivalents. Moreover, all investment minimums will be eliminated for these mutual funds, which will utilize a single share class.

On March 1, Schwab will also minimize expenses on the Schwab U.S. TIPS ETF and Schwab Fundamental Index ETFs. Pending shareholder approval, the Schwab Fundamental Index mutual funds will follow suit effective May 1, 2017, by eliminating all investment minimums, employing a single share class, and aligning expenses with those in the comparable Schwab ETFs.

“Reducing online trade commissions as scale and technology lower our operating costs is a way to ensure our clients benefit from their commitment to us,” says Schwab President and CEO Walt Bettinger. “I am especially proud of our decision to eliminate investment minimums and employ a single share class in our market cap-weighted and Fundamental Index mutual funds—ensuring that every investor pays the lowest possible fees.”

Furthermore, Schwab is initiating a satisfaction guarantee policy. Simply put, clients dissatisfied with certain commissions, transaction fees or advisory program fees paid do the firm would be refunded for those expenses.

“Today’s consumers expect great value, a great experience, and a refund if they aren’t satisfied,” explains Bettinger. “We believe a modern investing experience should deliver on these expectations—period

Visit Schwab.com for more information, disclosures, and specific details.

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