Schwab Order Execution Advantage™

When you place trades with Schwab, you're placing your trust in us. That's why we're committed to providing fast, quality executions with the highest level of transparency related to our performance, process, and practices.

Schwab Order Execution Advantage comes from Schwab’s regular and rigorous monitoring of order execution quality among competing market venues, and looking for opportunities to adjust our order routing based on performance trends, technological advances, and other competitive developments. It's part of our commitment to putting your interests first and also core to Schwab's Regulation NMS Equity Order Routing.

The Value of Schwab's Order Execution Quality

Obtaining high-quality executions on your orders, whether you’re buying or selling shares, may result in real savings.1

For example, here’s how we improved executions for market orders of 500-1,999 shares in S&P 500® stocks during the previous quarter. 

The Value of Schwab's Order Execution Quality

Best Online Broker 2020

Schwab ranked a Best Broker for Trade Reliability by Investor's Business Daily, 2020

Schwab ranked a Best Broker for Trade Reliability by Investor's Business Daily, 2020

A greater level of transparency

Transparency and honesty are hallmarks of the way we do business. That's why we exceed basic industry disclosure requirements (learn more about Reg NMS Rules 605 and 606) and have chosen to participate in the Financial Information Forum Rule 605/606 Retail Execution Quality Working Group, whose goal is to provide retail investors with more visibility into execution quality.

See our retail execution quality statistics along with frequently asked questions about these measures.4

Learn more about how price improvement and the National Best Bid and Offer work.

Our advanced order routing process seeks to obtain high-quality execution results.

How we evaluate execution quality

Schwab rigorously and regularly monitors the quality of executions obtained from securities exchanges and liquidity providers to ensure that orders are routed to destinations that have provided high-quality executions over time.

Considering that no one sole metric defines execution quality, Schwab reviews a number of factors when making our evaluation, such as:

  • Execution price, speed, and accuracy
  • Market depth, order size, and trading characteristics of the security
  • Liquidity, automatic execution guarantees, and opportunities for price improvement
  • Service levels and the cost of executing orders

The execution quality statistics we review are provided by S3 Matching Technologies, a third party that conducts an independent analysis of our client executions. These results are used to evaluate the execution performance of securities exchanges and liquidity providers based upon similar order characteristics.

Why put your trust in trading with Schwab?

Schwab is committed to putting your interests first, and to transparency in our order routing practices, and execution quality performance. Our order routing process seeks to deliver high-quality executions through access to the best performing liquidity providers and exchanges.

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