Schwab’s October Asset Flows Plummet

Charles Schwab’s net new asset flows for October plummeted 82% from last year and 88% from September to $5 billion.

The drop, the firm says, is due to “expected attrition from former [TD] Ameritrade clients, as well as delayed tax disbursements by clients in certain states such as California.”

Net new assets for “core” accounts, which exclude those that originally came from Ameritrade clients, were $11.3 billion for October. This is down 73% from a year ago and 5% from last month.

Overall, total client assets stood at $7.65 trillion as of Oct. 31, up 9% from October 2022 and down 2% from September. Assets in Advisor Services accounts were $3.38 trillion.

The firm just trimmed about 5% of its workforce, letting go roughly 2,000 employees.