Have you been holding onto some shares in your Charles Schwab account, watching them grow, and now you're thinking, "It's time to cash in!"? Whether you're looking to realize profits, rebalance your portfolio, or simply need the funds, selling shares on Charles Schwab is a straightforward process. This comprehensive guide will walk you through every step, ensuring a smooth and successful transaction.
Your Guide to Selling Shares on Charles Schwab
Selling your shares might seem daunting at first, especially if you're new to online trading. But with Charles Schwab's user-friendly platform, it's quite manageable. We'll break it down into clear, actionable steps, so you can confidently execute your sell order.
Step 1: Access Your Charles Schwab Account – Let's Get Started!
First things first, you need to log into your Charles Schwab account. This is where your investment journey continues!
- 1.1 Navigate to the Schwab Website or Mobile App: Open your preferred web browser and go to Schwab.com, or launch the Charles Schwab mobile app on your smartphone or tablet.
- 1.2 Log In Securely: Enter your User ID and Password. Remember to keep your login credentials private and use strong, unique passwords. If you've enabled two-factor authentication (which is highly recommended for security!), you'll also need to complete that step.
Step 2: Locate the "Trade" Section – Where the Action Happens
Once you're logged in, you'll need to find the trading interface. Charles Schwab offers a couple of intuitive ways to do this.
- 2.1 Using the All-In-One Trade Ticket:
- On the Schwab.com website, look for the "Trade" tab in the main navigation menu.
- From the dropdown, select "All-In-One Trade Ticket" or "Stocks & ETFs." This is your central hub for placing trades.
- 2.2 Utilizing SnapTicket® (For Quicker Access):
- SnapTicket® is a convenient feature often found on pages like your Account Summary, Research, Watchlist, or Positions. Look for the SnapTicket® button, usually located on the right-hand side of the page. This is great for quick trades when you're already viewing your holdings or research.
Step 3: Specify Your Selling Details – Tell Schwab What You Want to Sell
Now that you're in the trading interface, it's time to tell Charles Schwab exactly what you want to sell.
- 3.1 Select Your Account: If you have multiple accounts, choose the specific account from which you wish to sell the shares. This is crucial to ensure you're selling from the correct holding.
- 3.2 Enter the Security Information:
- In the designated field, enter the ticker symbol of the stock or ETF you want to sell. For example, if you're selling Apple shares, you'd type "AAPL."
- Alternatively, you can enter the company name, and the system will suggest the corresponding ticker symbol.
- 3.3 Choose "Sell" as the Action: Under the "Action" or "Strategy" dropdown, make sure you select "Sell." This tells Schwab your intention is to liquidate your position.
- 3.4 Enter the Quantity: Specify the exact number of shares you wish to sell. Be careful here – double-check this number to avoid accidental over-selling or under-selling. You can also choose to sell "All Shares" if you want to close your entire position in that security.
Step 4: Select Your Order Type – How You Want the Sale to Happen
This is a critical step that dictates how your trade will be executed. Charles Schwab offers various order types to give you control over the price and timing of your sale.
- 4.1 Understanding Common Order Types:
- Market Order: This is the simplest and most common order type. A market order instructs Schwab to sell your shares immediately at the best available market price. While it ensures quick execution, the final price might be slightly different from what you see when you place the order, especially in volatile markets. Use with caution in fast-moving markets.
- Limit Order: A limit order allows you to specify the maximum price you're willing to sell your shares for. Your order will only be executed if the market price reaches your specified limit price or better (higher). If the price doesn't reach your limit, your order may not be filled. This is ideal if you have a target selling price and are willing to wait.
- Stop Order (Stop-Loss Order): A stop order is used to limit potential losses or to lock in profits. You set a "stop price." If the stock's price falls to or below your stop price, it triggers a market order to sell your shares.
- Important Note on Stop Orders: While useful, stop orders can sometimes be triggered by temporary market fluctuations, leading to an unwanted sale. They also do not guarantee an exact execution price, as once triggered, they become market orders.
- Stop-Limit Order: This is a combination of a stop order and a limit order. You set a "stop price" (trigger) and a "limit price." When the stock price reaches your stop price, it triggers a limit order to sell your shares at your specified limit price or better. This provides more control over the execution price than a simple stop order.
- 4.2 Choose Your Time-in-Force (TIF):
- Day: Your order is active only for the current trading day. If it's not filled by the market close, it expires.
- Good-Until-Canceled (GTC): Your order remains active for up to 180 calendar days (at Schwab) or until it's filled or you cancel it.
- Other less common options like "Fill-or-Kill" (FOK) or "Immediate-or-Cancel" (IOC) may also be available for specific trading strategies.
Step 5: Review Your Order – The Crucial Double-Check
Before hitting that final "Place Order" button, a thorough review is absolutely essential. This is your last chance to catch any errors.
- 5.1 Verify All Details: Carefully examine:
- The account you're selling from.
- The ticker symbol and company name.
- The action (Sell).
- The quantity of shares.
- The order type (Market, Limit, Stop, Stop-Limit).
- The limit price or stop price if applicable.
- The time-in-force.
- 5.2 Understand Estimated Proceeds and Fees: The review screen will typically show you an estimated amount of cash you'll receive from the sale. Charles Schwab generally offers $0 online commission for U.S. exchange-listed stocks and ETFs. However, be aware of potential regulatory fees (like Section 31 Fee or FINRA Trading Activity Fee) or foreign transaction fees if you're selling international securities or OTC equities. These are usually small and standard across the industry.
- 5.3 Read Any Warnings or Disclosures: Schwab's platform will often display important messages or warnings related to your order (e.g., if it's a stop order close to the current market price). Pay attention to these!
Step 6: Place Your Order – Execute the Trade
Once you're confident all the details are correct, it's time to submit your order.
- 6.1 Click "Place Order" or "Submit Order": This final action sends your sell instruction to Charles Schwab for execution.
- 6.2 Confirmation: You'll typically receive an immediate confirmation that your order has been placed. You'll also be provided with an order number. Keep this number handy for your records.
Step 7: Monitor Your Order Status and Settlement – The Waiting Game
After placing your order, you'll want to keep an eye on its status.
- 7.1 Check Order Status:
- Navigate to the "Order Status" page within your Schwab account. This page will show you whether your order is "Open," "Partially Filled," "Filled," or "Canceled."
- For market orders, execution is usually instantaneous. For limit or stop orders, it might take time for the market conditions to meet your specified criteria.
- 7.2 Understand Settlement Time: Stock trades (and most other securities) typically have a settlement period of T+2, which means the transaction officially settles two business days after the trade date. The cash from your sale will become available in your Schwab account after this settlement period. You cannot withdraw the funds until they have settled.
Step 8: Access Your Funds (After Settlement) – Enjoy the Proceeds!
Once your trade has settled, the cash from your sale will be available in your Charles Schwab brokerage account. You can then transfer it out or reinvest it.
- 8.1 Transferring Funds Online:
- Go to "Move Money" in the main navigation.
- Select "Transfers & Payments."
- Choose "Online Transfer."
- Select your Schwab account as the "from" account and your linked external bank account as the "to" account. If you haven't linked an external account, you'll need to do that first (under "Link or delete external bank accounts").
- Enter the amount you wish to transfer.
- Review and confirm the transfer. Online transfers usually take 1-2 business days to reach your external bank account.
- 8.2 Other Withdrawal Options:
- Wire Transfer: For same-day transfers (usually with a fee). You'll need the destination bank's routing number, account number, recipient name, and address.
- Request a Check: You can request a physical check to be mailed to you, which typically takes 6-9 business days.
- Reinvest: You can also simply use the cash proceeds to buy other securities directly within your Schwab account.
Frequently Asked Questions (FAQs)
Here are 10 common questions about selling shares on Charles Schwab, with quick answers:
How to check my available funds after selling shares?
After selling shares, the funds will be "pending" until the trade settles (usually T+2 business days). You can check your "Cash Available for Withdrawal" or similar balance in your Charles Schwab account summary to see the settled funds.
How to cancel a sell order on Charles Schwab?
You can generally cancel an "open" (unexecuted) order by going to your "Order Status" page and clicking the "Cancel" button next to the specific order. Once an order is "filled" (executed), it cannot be canceled. Market orders are often filled too quickly to be canceled.
How to sell only a portion of my shares?
When placing your sell order, simply enter the specific quantity of shares you wish to sell, rather than selecting "All Shares."
How to find the ticker symbol for a stock I own?
You can find the ticker symbol by navigating to your "Positions" or "Holdings" within your Charles Schwab account. The ticker symbol will be listed alongside the company name. You can also use Schwab's search function.
How to sell shares if I have Restricted Stock Units (RSUs) or Employee Stock Options?
Selling RSUs or shares from employee stock options often involves a slightly different process through the Schwab Equity Award Center. You'll typically log into that specific platform and follow the steps there, which are often similar to selling regular shares but may have additional tax implications or holding periods.
How to transfer money out of Charles Schwab after a sale?
Once your trade has settled (T+2 business days), you can transfer money by going to "Move Money" > "Transfers & Payments" > "Online Transfer" on Schwab.com, and then selecting your Schwab account and your linked external bank account.
How to avoid a "wash sale" when selling and rebuying?
A wash sale occurs when you sell a security at a loss and then buy a "substantially identical" security within 30 days before or after the sale.
How to know the fees associated with selling shares on Charles Schwab?
For U.S. exchange-listed stocks and ETFs, Charles Schwab generally charges $0 online commission. However, there may be small regulatory fees (like SEC Section 31 Fee or FINRA Trading Activity Fee) or foreign transaction fees for non-U.S. securities or OTC equities. These are typically disclosed during the order review process.
How to get help if I encounter an issue selling my shares?
If you face any issues, you can contact Charles Schwab customer service. They offer phone support, live chat, and can assist with broker-assisted trades (which may incur a fee). Their trading support desk is also available for more complex trading inquiries.
How to tell if my sell order was successful?
You can verify a successful sell order by checking your "Order Status" page in your Schwab account. A "Filled" status indicates the trade was executed. You'll also see the cash proceeds reflected in your account balance (though subject to settlement).