Charles Schwab, the largest US discount brokerage, has agreed to pay a fine of $350,000 (€285,000) to settle charges by the US Securities and Exchange Commission that it allowed clients to change hundreds of mutual fund orders outside market hours.

Charles Schwab is the first major brokerage firm to be penalised by the US regulator in the mutual fund trading scandal but the fine is much smaller than recent settlements by mutual fund firms.