Does Schwab pass MOC exchange fees on to clients?

Discussion in 'Retail Brokers' started by Maverick2608, Feb 10, 2020.

  1. Does Schwab pass the 0.001 per share NYSE/0.00145 per share Nasdaq fee on MOC orders on to clients?

    I asked Schwab on their chat, but the representative did not know the answer.
    murray t turtle likes this.
  2. %%
    An educated guess;
    yes............................................................................................................I NEVER heard of any broker paying that stuff; even the ''free ETfs''/management fees, had to hold it thru 30 days of market closings.........
  3. I remember I used to pay about 15$ for a round trip. it seems now they (Schwab, Etrade, TD) charge about 5$ per trade regardless how shares I trade (1000 shares or 10K shares) (to be honest, I haven't paid much attention to the fee. it seems they charge the fee nominally the same across the board . they call something like "exchange fee".
  4. ironchef


    If you have a Schwab account, the commission/cost of trading equity/ETF always show zero. However, it just dawned on me that for quite sometime now, the cost per share on my trade showed odd numbers, like $200.599 per share, not some round number like $200.60. Perhaps those costs were baked into the cost per share I paid?

    For options, they charge $0.25 per contract + some very small (Exchange?) nominal fees.
  5. It could also just be because the counterpart is a dark pool that can post orders in increments of 0.001 as opposed to the rest of us that have to use 0.01 increments.

    If you participate in the opening or closing cross with for instance 15.000 shares, the Nasdaq exchange fee is USD 21.75 - so not an insignificant amount. Have you participated in the opening or closing cross, because then you can calculate how much higher the cost per share will be by adding 0.001 per share for NYSE/0.00145 per share for Nasdaq orders and see if that may explain it.

    My best guess is that the opening/closing exchange fee is not passed on to Schwab clients.

    IB has chosen a different approach in that IB does not allow opening/closing cross orders to exceed a certain threshold (I think they have set the bar at 10% of total orders within a given month.)
  6. Robert Morse

    Robert Morse Sponsor

    Good morning ironchef- You have posted a number of times that your broker charges "you" $0.25/option but that is a very discounted rate to their posted rate of $0.65. That said, it is likely those other small nominal fees are ORF, SEC and TAF that come to about $0.04/options. Some brokers pass through the OCC fee of $0.055 too, we do not. It is included in our rates.

    ironchef likes this.
  7. Robert Morse

    Robert Morse Sponsor

    Maverick2608-If you are a current client of Schwab, or any broker that does not provide routing choices like Lightspeed, what is more important than the pass-through of 10 mils for NYSE or 15mils for NASDAQ, is where are they sending those orders and are you part of the opening/closing auctions and do you get that price. If you do not have that expectation, that will cost a lot more than a commission.

    Maverick2608 likes this.
  8. ironchef


    You are probably correct, they gave it to me in 2018 together with zero commission on equity/ETF. I assumed if someone on ET is a frequent options trader like me, they should be able to get that rate too? Yes, they do tag on some small "exchange fees" on top.

    Have a good day.
  9. ironchef


    Thank you for your explanation.

    I have no clue what opening/closing cross order is? Should I worry about this?

    I am just a small time trader, never trade 15,000 shares, or > 1,000 option contracts at a pop.
  10. ironchef


    Same question Robert, opening/closing auction what is that? Also, should I specify routing choices and what is the advantage of specifying?
    #10     Feb 17, 2020