Master the Market: Your Step-by-Step Guide to Selling Shares on Charles Schwab
Have you been considering selling some of your shares and taking profits, or perhaps rebalancing your portfolio? If you hold your investments with Charles Schwab, you're in the right place! Selling shares on Charles Schwab is a straightforward process, whether you're a seasoned investor or just starting out. This comprehensive guide will walk you through every step, ensuring you feel confident and in control of your financial decisions.
Let's dive in and learn how to navigate the selling process like a pro!
Step 1: Log In and Assess Your Portfolio
Ready to take control of your investments? The very first step is to access your Charles Schwab account.
 |
| How To Sell Shares Charles Schwab |
1.1 Accessing Your Account
- Via Web Browser: Open your preferred web browser and go to the official Charles Schwab website (schwab.com). Locate the "Log In" button, usually found in the top right corner. Enter your User ID and Password.
- Via Mobile App: If you prefer mobile convenience, open the Charles Schwab Mobile app on your smartphone or tablet. Enter your credentials to log in. The app provides a very intuitive interface for managing your investments on the go.
1.2 Reviewing Your Holdings
Once logged in, you'll land on your account dashboard, often called the "Summary" or "Accounts" page. Here, you'll see an overview of your entire portfolio.
- Navigate to Positions: Look for a section or tab labeled "Positions" or "Holdings." This is where you'll find a detailed list of all the securities you own, including stocks, ETFs, mutual funds, and more.
- Identify the Shares to Sell: Browse through your list of holdings and identify the specific stock or ETF you wish to sell. Take note of the ticker symbol (e.g., AAPL for Apple, SPY for SPDR S&P 500 ETF) and the number of shares you currently own.
Step 2: Initiating a Sell Order
Now that you've identified what you want to sell, it's time to initiate the trade.
2.1 Locating the Trade Function
Charles Schwab offers a few ways to place trades:
Reminder: Reading twice often makes things clearer.
- All-In-One Trade Ticket: This is a comprehensive trading interface. On the website, you typically find it under the "Trade" menu, then "All-In-One Trade Ticket."
- SnapTicket®: This is a quicker trading tool often accessible directly from pages like "Summary," "Research," or "Watchlist." Look for a "SnapTicket®" button or link, usually on the right-hand side of the page.
- From Positions Page: Often, directly from your "Positions" page, you'll see an option next to each holding to "Trade" or "Sell." Clicking this will pre-populate the trade ticket with the relevant security.
2.2 Selecting "Sell" Action
Once you're on the trade ticket:
- Enter Ticker Symbol: If not already pre-populated, enter the ticker symbol of the stock or ETF you intend to sell.
- Choose "Sell" Action: From the "Action" dropdown menu, select "Sell." This is a crucial step to ensure you're placing the correct type of order.
Step 3: Filling Out the Trade Ticket Details
This is where you specify the exact parameters of your sell order. Accuracy here is key!
3.1 Quantity of Shares
- Enter Quantity: In the "Quantity" field, type in the exact number of shares you wish to sell. Double-check this number to avoid selling more or fewer shares than intended.
3.2 Selecting Order Type
The "Order Type" determines how your trade will be executed. This is a critical decision that can impact your selling price.
- Market Order: This instructs Schwab to sell your shares immediately at the best available market price. While it ensures quick execution, the final price might fluctuate, especially for volatile stocks or during rapid market movements. Use with caution for large orders or illiquid stocks.
- Limit Order: This allows you to set a specific price at which you are willing to sell your shares. Your order will only be executed if the market price reaches your specified limit price or higher. This gives you more control over the selling price but there's no guarantee of execution if the market doesn't reach your limit.
- If you choose a Limit Order, you'll need to enter your desired "Limit Price."
- Stop Order (Sell Stop): A stop order becomes a market order once the "stop price" is reached. For a sell stop, if the stock's price falls to or below your stop price, your order will trigger and become a market order to sell. This is often used to limit potential losses.
- If you choose a Stop Order, you'll need to enter your "Stop Price."
- Stop-Limit Order (Sell Stop-Limit): This combines elements of both stop and limit orders. When the stock's price falls to your "stop price," it triggers a limit order to sell at your specified "limit price" or better. This offers more control than a simple stop order, preventing sales at significantly lower prices if the market gaps down.
- If you choose a Stop-Limit Order, you'll need to enter both a "Stop Price" and a "Limit Price." The limit price for a sell stop-limit order is typically equal to or below the stop price.
3.3 Time in Force
This specifies how long your order will remain active.
- Day Order: Your order will remain active only until the end of the current trading day (typically 4:00 PM ET). If not executed, it will expire. This is the most common choice.
- Good-Til-Canceled (GTC): Your order will remain active for an extended period, typically up to 180 calendar days at Schwab, or until it's fully executed or you manually cancel it. Be mindful of GTC orders as market conditions can change significantly over time.
- Extended Hours (Day + Extended or GTC + Extended): These options allow your order to be active during pre-market and after-hours trading sessions. They are generally only available for limit orders. Extended-hours trading can be less liquid and more volatile.
3.4 Cost Basis Method (Important for Taxes!)
When selling shares, especially if you've bought them at different times and prices, choosing your cost basis method is crucial for tax purposes.
Tip: Keep scrolling — each part adds context.
- First-In, First-Out (FIFO): This is the default method. It assumes you are selling the first shares you ever acquired.
- Last-In, First-Out (LIFO): Assumes you are selling the most recently acquired shares.
- High Cost: Sells the shares with the highest cost basis first, which can help minimize capital gains.
- Low Cost: Sells the shares with the lowest cost basis first, which can maximize capital gains.
- Specific Lot Identification: This allows you to manually select which specific shares (or "lots") you want to sell. This is often the most advantageous method for tax planning if you have shares acquired at various prices. If you select this, Schwab will show you a list of your available lots with their acquisition dates and costs, and you can choose which ones to sell.
It is highly recommended to consult with a tax advisor to determine the best cost basis method for your individual situation.
Step 4: Reviewing and Placing Your Order
Almost there! Before your order goes live, you'll have a chance to review everything.
4.1 Confirming Order Details
After filling out the trade ticket, click on "Review Order" (or a similar button). This will take you to a summary page where you can verify all the details you've entered:
- Account: Make sure you're selling from the correct account.
- Action: Confirm it says "Sell."
- Security: Double-check the ticker symbol and company name.
- Quantity: Ensure the number of shares is accurate.
- Order Type & Price: Verify your chosen order type (Market, Limit, Stop, Stop-Limit) and the associated price(s).
- Time in Force: Confirm the duration of your order.
- Estimated Proceeds: Schwab will often provide an estimated amount you'll receive from the sale (before commissions and fees, if any).
4.2 Understanding Potential Fees
While Charles Schwab generally offers $0 online commissions for listed stocks and ETFs, there might be other fees to be aware of:
 |
- Regulatory Fees: Small fees assessed by the SEC and FINRA.
- Broker-Assisted Trades: If you place your order through a Schwab representative over the phone, a service charge (e.g., $25) will likely apply. Automated phone trades also typically incur a smaller fee (e.g., $5).
- Options Contracts: Selling options involves a per-contract fee.
- OTC Equities/Foreign Exchange: Different commission structures apply to over-the-counter (OTC) equities and trades placed directly on a foreign exchange.
Always review the "Pricing Guide for Individual Investors" on the Charles Schwab website for the most up-to-date and detailed fee information.
QuickTip: If you skimmed, go back for detail.
4.3 Placing the Order
If everything looks correct and you're comfortable with the details, click "Place Order" (or a similar button like "Submit Order"). You will receive an order confirmation indicating that your request has been received.
Step 5: Monitoring Your Order and Confirming Execution
After placing your order, it's good practice to monitor its status.
5.1 Checking Order Status
- Order Status Page: Navigate to the "Order Status" or "Trade History" section of your Schwab account. Here, you'll see if your order is "Pending," "Partially Filled," "Filled," or "Canceled."
- Notifications: Charles Schwab may also send you email or mobile app notifications when your order is executed.
5.2 Confirmation and Settlement
- Trade Confirmation: Once your sell order is fully executed, you will receive a trade confirmation. This document details the exact price your shares were sold at, the total proceeds, and any associated fees. Keep this for your records.
- Settlement Period: The proceeds from your sale will not be immediately available as cash in your account. Stock trades typically have a settlement period of T+2 (trade date plus two business days). This means the cash will be available for withdrawal or reinvestment two business days after the trade is executed. You might see the funds in your "cash available for trading" immediately, but "cash available for withdrawal" will reflect after settlement.
Frequently Asked Questions (FAQs)
Here are 10 common "How to" questions related to selling shares on Charles Schwab, with quick answers:
How to check my available shares before selling?
You can check your available shares by logging into your Charles Schwab account and navigating to the "Positions" or "Holdings" section. This will list all your current holdings and the quantity of each.
How to cancel a sell order on Charles Schwab?
To cancel an unexecuted sell order, go to the "Order Status" or "Pending Orders" section of your account. Locate the specific order and look for a "Cancel" button or link next to it. Be aware that market orders or orders that have already been filled cannot be canceled.
Tip: Bookmark this post to revisit later.
How to sell specific tax lots on Charles Schwab?
When placing a sell order, select "Specific Lot Identification" as your cost basis method. This will allow you to choose which particular shares (based on acquisition date and price) you want to sell from your available lots.
How to sell fractional shares on Charles Schwab?
Charles Schwab supports trading of fractional shares. When entering the quantity in your trade ticket, you can enter a decimal value (e.g., 0.5 shares). The process is generally the same as selling whole shares.
How to get the best price when selling shares on Charles Schwab?
To aim for a specific price, use a limit order. Set your desired selling price, and your order will only execute if the market reaches that price or higher. However, there's no guarantee of execution with a limit order.
How to avoid losing money when selling shares?
While no strategy guarantees profit, using stop-loss orders (sell stop or sell stop-limit) can help limit potential losses by triggering a sell order if the stock price falls to a predetermined level. Always conduct thorough research and understand the risks before investing.
How to withdraw money after selling shares on Charles Schwab?
After your trade has settled (T+2 business days), the proceeds will be available as "cash available for withdrawal." You can then initiate a withdrawal via electronic funds transfer (EFT), check, or wire transfer from the "Move Money" section of your Schwab account.
How to understand the different order types (Market, Limit, Stop)?
- Market Order: Sells immediately at the current market price. Fastest execution, but price can vary.
- Limit Order: Sells only at or above a specific price you set. Gives price control, but no guarantee of execution.
- Stop Order (Sell Stop): Becomes a market order if the stock price drops to your set stop price. Used to limit losses, but can sell at a lower price than the stop in volatile markets.
How to find my trade confirmations on Charles Schwab?
Trade confirmations are typically available in the "Statements & Documents" or "Trade History" section of your online account. You can usually download them as PDFs for your records.
How to contact Charles Schwab customer service for trading help?
You can contact Charles Schwab customer service by phone (phone numbers are typically available on their "Contact Us" page or in your account dashboard) or through their secure messaging system online. They also offer a "Trade Desk" with specialists to assist with trading-related queries.
 |
