Important Update: New Schwab Fee on Certain Trades
We are writing to inform you of a change Charles Schwab & Co. (“Schwab”) is making to its trade pricing that may affect certain transactions in your account.
Effective June 1, 2026, Schwab will begin charging a $5 “high-touch” trade fee on certain orders that require manual handling by a Schwab trader rather than being executed entirely through their electronic systems. This fee is set and collected by Schwab, not by Cadinha & Co., and will appear on confirmations and statements for any affected trades.
Dedicated to our Fiduciary duties, the costs of transactions are thoroughly reviewed. Client portfolios in block trades of larger, blue-chip companies, which route and execute electronically and are not expected to be affected by this new fee. In some cases, however, lower-volume or less liquid companies (for example, securities like HUBB or GWW) may require Schwab’s trading desk involvement to source inventory or carefully work the order so as not to push the execution price of trades related for these types of companies. In those situations, Schwab may apply this $5 high-touch fee.
Cadinha’s trading desk will continue to evaluate, on an order-by-order basis, whether engaging Schwab’s block/high-touch desk is likely to improve execution enough to justify the additional $5 cost. When market conditions, order size, or liquidity suggest that using Schwab’s trading desk to achieve better prices or executions, we may choose that route because the expected improvement in executions should outweigh the incremental fee. In other cases, when electronic routing can provide comparable execution, we will avoid the high-touch channel and the associated fee.
When placing trades, we will continue to focus on:
• Seeking best execution for your orders
• Managing overall trading costs, including any Schwab-imposed fees
• Using block trading where appropriate to keep implementation efficient and consistent across accounts
Rest assured, there is no change to our advisory fees, and Cadinha & Co. is not compensated directly or indirectly by any portion of this Schwab charge.
If you have questions about how this new Schwab fee might apply to your account or to a specific transaction, please contact us at (808)523-9488. We are happy to review your recent trades and explain how we manage both execution quality and trading costs on your behalf.
