How To Sell My Stocks On Charles Schwab

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Have you decided it's time to realize some gains, rebalance your portfolio, or simply free up some cash? Selling stocks can be a significant step in your investing journey. If you're a Charles Schwab client, you're in good hands. They offer a robust platform and various options to make the selling process as smooth as possible. This comprehensive guide will walk you through every step, from preparing for your sale to understanding the aftermath.

A Comprehensive Guide: How to Sell Your Stocks on Charles Schwab

Selling stocks isn't just about hitting a "sell" button; it involves understanding your holdings, market conditions, and the different order types available to you. Let's dive in!

Step 1: Are You Ready to Sell? Assessing Your Investment Goals

Before you even log into your Charles Schwab account, take a moment to reflect. Why are you selling this particular stock? Are you:

Taking profits after a significant price increase?
Cutting losses on an underperforming asset?
Rebalancing your portfolio to maintain your desired asset allocation?
Needing cash for a large purchase or emergency?
Responding to a fundamental change in the company's prospects or the overall market?

Understanding your motivation will help you determine the best approach to selling, including the type of order you place. It's crucial to avoid making emotional decisions when it comes to your investments.

Step 2: Logging In and Navigating to Your Holdings

Once you're clear on your "why," it's time to access your Charles Schwab account.

Sub-step 2.1: Accessing the Platform

Online: Go to Schwab.com and enter your User ID and Password. This is generally the most common and recommended way to sell stocks due to the direct control and visual confirmation it offers.
Mobile App: Download and open the Charles Schwab Mobile app on your smartphone or tablet. Log in with your credentials. The mobile app provides a streamlined experience for quick trades.
By Phone: If you prefer speaking to a representative, you can call Charles Schwab's customer service. Be aware that a service charge ($25) may apply for broker-assisted trades, and for automated phone trades, it's typically $5. Have your account number and security information ready.
In Person: Visit a Charles Schwab branch if you prefer face-to-face assistance.

Sub-step 2.2: Finding Your Stock

Once logged in, you'll need to navigate to your holdings.

On the website, look for a "Accounts" or "Portfolio" section. You'll typically find a list of your various accounts (brokerage, IRA, etc.).
Select the account that holds the stock you wish to sell.
Within the account summary, there will be a section displaying your "Holdings" or "Positions." Find the specific stock you want to sell in this list.

Step 3: Placing Your Sell Order

This is the core of the process. Charles Schwab offers different order types, and understanding them is crucial for achieving your desired outcome.

Sub-step 3.1: Initiating the Trade

Next to the stock you want to sell, you'll usually see an "Action" column or a "Trade" button. Click on it and then select "Sell."
You'll be taken to a trade ticket or order entry screen.

Sub-step 3.2: Entering the Details of Your Sale

Here's where you specify the parameters of your sell order:

Ticker Symbol: This should be pre-filled based on the stock you selected. Double-check to ensure it's correct.
Action: Confirm it says "Sell."
Quantity:
- Number of Shares: Enter the exact number of shares you wish to sell.
- Sell All: Charles Schwab often provides an option to "Sell All" if you want to liquidate your entire position in that particular stock, including any fractional shares.
- Fractional Shares: If you own fractional shares (e.g., 0.5 shares), you can generally sell them by selecting "Sell All" or by manually entering the fractional quantity (often using SmartEx or Schwab Pre-Market/After Hours venues if available).
Order Type: This is one of the most critical decisions. Here are the common options:
- Market Order: This order instructs Charles Schwab to sell your shares immediately at the best available current market price.
  - Pros: Guaranteed execution. Your order will almost certainly be filled quickly.
  - Cons: You don't know the exact price you'll receive. In fast-moving markets, the price could fluctuate between when you place the order and when it executes, potentially leading to a slightly lower or higher price than you anticipated.
  - When to use: When speed of execution is your primary concern, and you are comfortable with slight price variations.
- Limit Order: This order allows you to specify a minimum price at which you are willing to sell your shares. Your order will only execute if the stock's price reaches or exceeds your specified limit price.
  - Pros: Guaranteed price (or better). You control the minimum price you'll receive.
  - Cons: No guarantee of execution. If the stock never reaches your limit price, your order may not be filled, or only partially filled.
  - When to use: When you have a target price in mind and are willing to wait for the market to meet it. This is excellent for protecting profits or avoiding selling below a certain threshold.
- Stop Order (Stop-Loss Order): This is a market order that triggers when the stock price falls to a specific "stop price." Once the stop price is reached, your stop order becomes a market order and will be executed at the next available market price.
  - Pros: Can help limit potential losses if a stock starts to decline rapidly.
  - Cons: Your execution price might be lower than your stop price in a fast-moving market (known as "slippage"). A temporary dip could trigger a sale when you didn't intend to exit the position.
  - When to use: Primarily for risk management, to protect against significant downside.
- Stop-Limit Order: A combination of a stop order and a limit order. You set a "stop price" that triggers a "limit order" at a specified "limit price." The order will only execute if the stock price hits your stop price and can be filled at or above your limit price.
  - Pros: Provides more control over the execution price than a simple stop order.
  - Cons: Still no guarantee of execution. If the price drops below your limit price after hitting the stop price, your order may not be filled.
  - When to use: When you want to limit losses but also want some control over the selling price.
- Trailing Stop Order: Instead of a fixed stop price, a trailing stop order moves with the stock's price. You set a "trailing amount" (either a dollar amount or a percentage) below the current market price. As the stock price rises, the trailing stop price adjusts upwards, allowing you to lock in profits. If the stock price falls by the specified trailing amount from its high, the order triggers.
  - Pros: Allows you to participate in upside gains while still protecting profits.
  - Cons: Like other stop orders, subject to slippage.
  - When to use: For protecting profits on a stock that is steadily increasing in value.
Time in Force (TIF): This determines how long your order remains active.
- Day: The order will remain active only for the current trading day. If not filled by market close, it will expire. This is typically the default.
- Good-Til-Canceled (GTC): The order remains active until it is filled or until you cancel it. At Charles Schwab, GTC orders are usually good for up to 180 calendar days.
- Immediate-or-Cancel (IOC): Any part of the order that can be filled immediately is filled, and any remaining shares are canceled.
- Fill-or-Kill (FOK): The entire order must be filled immediately, or it is canceled. This is often used for large orders.

Sub-step 3.3: Reviewing Your Order

Before placing the trade, Charles Schwab will provide a "Review Order" screen. Carefully examine all the details:

Stock symbol and name
Action (Sell)
Quantity
Order type (Market, Limit, Stop, Stop-Limit, Trailing Stop)
Price (if applicable for limit/stop orders)
Time in Force
Estimated commission/fees (though most online listed stock trades are $0 commission at Schwab)

This is your last chance to catch any errors. A mistake here can be costly.

Sub-step 3.4: Placing the Order

If everything looks correct, click "Place Order" or "Submit Order."

Step 4: Confirmation and Settlement

Once your order is placed, you'll receive confirmation.

Sub-step 4.1: Order Confirmation

You'll typically see an "Order Confirmation" screen immediately after placing the trade. This confirms that your order has been received by Charles Schwab.
If your order executes (especially a market order), you'll receive an execution confirmation, often with the actual price at which your shares were sold. You may receive this via email, or it will be available in your account's "Order Status" or "Trade History" section.
It is crucial to review your trade confirmation for any discrepancies. If you find an error, contact Charles Schwab immediately (within 10 days of receiving the confirmation).

Sub-step 4.2: Trade Settlement

Selling a stock isn't instantaneous. The funds don't become immediately available for withdrawal or for new purchases in a cash account.

Settlement Period: For most U.S. stock transactions, the settlement period is T+1, meaning the trade date plus one business day. So, if you sell on a Monday, the trade officially settles on Tuesday.
Impact on Funds:
- Buying New Securities: Once the trade executes, the proceeds are typically available immediately for reinvesting in other securities within your Charles Schwab account.
- Withdrawing Funds: You generally cannot withdraw the funds until the trade has officially settled. Attempting to withdraw unsettled funds can lead to "good faith violations" or "free-riding" violations, which can result in trading restrictions on your account.
- Schwab generally requires cash or adequate margin prior to entering any securities orders to ensure efficient settlement.

Step 5: Accessing Your Funds (Post-Settlement)

After your trade has settled, the proceeds from your stock sale will appear as cash in your Charles Schwab brokerage account.

Sub-step 5.1: Transferring Funds

You have several options for accessing your cash:

Online Transfer (ACH): You can transfer funds electronically to an external bank account linked to your Schwab account. This typically takes 1-2 business days. There are usually no fees for online ACH transfers.
Wire Transfer: For faster transfers (often same-day), you can initiate a wire transfer. Charles Schwab may charge a fee for domestic wire transfers (e.g., $15 for online requests). You'll need the destination bank's routing number, account number, and recipient details.
Check Request: You can request a physical check be mailed to you. This usually takes 6-9 business days to arrive and typically has no fees unless you request overnight delivery.
Schwab Debit Card/Checks: If you have a Schwab checking account linked to your brokerage, you can use your debit card or write checks against your available cash balance.

Sub-step 5.2: Reinvesting Your Proceeds

Alternatively, you can keep the cash in your Charles Schwab account and use it to:

Buy other stocks, ETFs, mutual funds, or bonds.
Transfer it to a Schwab Bank account for everyday spending.

Important Considerations:

Taxes: Remember that selling stocks for a profit generally triggers a taxable event. Keep good records of your cost basis. Charles Schwab will provide tax documents (like Form 1099-B) at the end of the year summarizing your sales. Consult with a tax professional for personalized advice.
Commissions and Fees: While Charles Schwab offers $0 online commission for listed stocks and ETFs, other fees may apply. These can include:
- Broker-assisted trade fees ($25): If you call to place an order.
- Automated phone trade fees ($5): If you use the automated phone system.
- Regulatory fees: Small fees like SEC fees or FINRA TAF (Trading Activity Fee) may be passed on, but these are usually negligible.
- OTC Equities: Sales of over-the-counter (OTC) equities are not commission-free.
Market Hours: Stock exchanges have specific trading hours (typically 9:30 AM to 4:00 PM ET on weekdays). Orders placed outside these hours will typically be queued for the next trading day's open. Extended-hours trading is also available for limit orders.
Market Volatility: In highly volatile markets, prices can change rapidly. This is particularly relevant for market orders, where your execution price might differ from the last quoted price.

10 Related FAQ Questions

How to check my stock holdings on Charles Schwab?

You can check your stock holdings by logging into your Charles Schwab account online or via the mobile app, then navigating to your "Accounts" or "Portfolio" section and selecting the specific account to view your "Holdings" or "Positions."

How to know if my stock sale order went through on Charles Schwab?

You will typically receive an "Order Confirmation" immediately after placing the trade. For executed orders, you'll get an execution confirmation, which will also be visible in your account's "Order Status" or "Trade History" section online or in the app.

How to cancel a pending stock sell order on Charles Schwab?

If your order hasn't been executed yet, you can usually cancel it from the "Order Status" or "Pending Orders" section of your Charles Schwab account online or in the mobile app. Look for an option to "Cancel Order."

How to understand the different order types when selling stocks on Charles Schwab?

Charles Schwab offers Market (immediate execution at current price), Limit (executes at a specified price or better), Stop (triggers a market order when a certain price is hit), and Stop-Limit (triggers a limit order when a certain price is hit) orders. Each serves a different purpose for speed versus price control.

How to avoid a "good faith violation" after selling stocks on Charles Schwab?

To avoid a good faith violation, ensure that you only use settled funds for new purchases or withdrawals. Wait for your stock sale to officially settle (T+1 for most stocks) before attempting to transfer the cash out of your account or use it to buy new securities in a cash account.

How to sell fractional shares on Charles Schwab?

You can generally sell fractional shares by selecting the "Sell All" option for that holding or by manually entering the fractional quantity when placing a sell order. Schwab's SmartEx or Pre-Market/After Hours venues typically handle fractional share sales.

How to transfer money out of my Charles Schwab account after selling stocks?

Once your stock sale has settled, you can transfer money out via online ACH transfer to a linked bank account, wire transfer, or by requesting a physical check. Navigate to "Move Money" and then "Transfers & Payments" on the Schwab platform.

How to check the fees for selling stocks on Charles Schwab?

Most online listed stock and ETF trades at Charles Schwab are commission-free. However, service charges may apply for broker-assisted trades ($25) or automated phone trades ($5), and regulatory fees may also be passed on. Refer to Schwab's Pricing Guide for Individual Investors for full details.

How to set up a trailing stop order on Charles Schwab?

When placing a sell order, select "Trailing Stop" as your order type. You will then specify a trailing amount (either a dollar amount or a percentage) below the current market price. This stop price will automatically adjust as the stock's price moves up.

How to get tax documents for my stock sales from Charles Schwab?

Charles Schwab provides tax documents, such as Form 1099-B, summarizing your stock sales for the year. These documents are typically available electronically in your account's "Statements & Documents" section or mailed to you at tax time.

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