Are you considering trading options with Schwab? Before you start, it`s important to understand the fees associated with option contracts.
Schwab charges a base fee of $0.65 per contract for options trades. This fee applies to both buying and selling contracts. In addition to the base fee, Schwab also charges a per-contract fee for exercise or assignment. The fee for exercise or assignment is $4.95 per contract.
It`s important to keep in mind that fees can add up quickly with options trading, especially if you are buying and selling frequently or trading high volumes of contracts. It`s a good idea to calculate the cost of fees into your overall trading strategy.
One way to mitigate fees is to consider trading in larger volumes. Schwab offers volume discounts on options trades, with fees ranging from $0.65 to $0.50 per contract depending on the number of contracts traded.
Another option is to consider using Schwab`s StreetSmart Edge trading platform, which offers advanced options trading tools and the ability to view real-time options quotes. This platform also includes a “Trade Assessor” tool that allows you to compare fees and commissions across different options trading strategies.
Overall, if you`re considering trading options with Schwab, it`s important to understand the fees associated with option contracts. With careful planning and consideration of volume discounts and trading tools, you can effectively manage fees and maximize your options trading experience.