The company announced commissions would be dropped from $29.95 for individual investor accounts including those in its Schwab Personal Choice Retirement Accounts (PCRA), an SDBA.
For fewer than 30 trades per quarter, the cost of each trade is now $19.95 for the first 1,000 shares, plus 1 1/2 cents per share thereafter. For 30 or more trades per quarter, each trade is $14.95, regardless of the number of shares involved, Schwab announced. For stocks that trade for less than $1 per share, the cost of each trade is a flat $19.95 or $14.95, whichever applies based on trading frequency and regardless of the number of shares involved.
“We’re returning to our roots and offering consumers more affordable ways to invest in their futures,” said Jim McCool, senior vice president of Charles Schwab Corporate Services, in the announcement. “Personal Choice Retirement Accounts provide Schwab customers greater control and flexibility in managing their retirement plans – and now we’re further enhancing the value of these accounts with improved pricing.”
Schwab launched its PCRA in 1994. Schwab currently supports more than 7,000 retirement plans representing more than 110,000 individual SDBA accounts and $8.6 billion in total retirement assets as of May 2004.