Close Close
Sign In
Newsletters
Popular Financial Topics Discover relevant content from across the suite of ALM legal publications From the Industry More content from ThinkAdvisor and select sponsors Investment Advisor Issue Gallery Read digital editions of Investment Advisor Magazine Tax Facts Get clear, current, and reliable answers to pressing tax questions
Luminaries Awards
Podcast Center Video Center Webcasts Resource Center Events
About ThinkAdvisor Contact Us Advertise With Us Asset & Logo Licensing Sitemap Terms of Service Privacy Policy Copyright © 2024 ALM Global, LLC. All Rights Reserved.
ThinkAdvisor

Portfolio > Asset Managers

Schwab Cuts Price of Trades

By Staff Writer

X
Your article was successfully shared with the contacts you provided.

Charles Schwab Corp. has slashed by nearly 17% the price of trades that many advisors place online for their clients. The price reduction, from $29.95 to $24.95 per trade, came as the discount broker announced a broad reorganization of Schwab’s retail services.

Under Schwab’s new plan, investors will be able to choose among eight different plans, from one for active investors featuring $9.95 trades and streaming quotes, to Schwab Advisor Network, which offers referrals to independent advisors. In between are several levels of service provided by Schwab staffers, with prices rising in line with the amount and complexity of service and advice. “We are teaching investors how to pay for advice,” says Schwab Institutional President Deborah McWhinney.

McWhinney said Schwab’s advisor assets totaled $287 billion at the end of 2003. The firm had 5,300 advisory firms as clients at year end, down from about 5,800 at the close of 2002. But McWhinney noted that more than 90% of the firms Schwab lost had less than $10 million in assets. Schwab has been moving to shed its ties to smaller advisory firms in favor of ones that have at least $25 million in assets or those that have a plan to get to that level in short order.

NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.