Charles Schwab has decided to discontinue Schwab Intelligent Portfolios Premium, its hybrid robo-advisor offering that combines digital advice with human advisors. The hybrid service charged a one-time $300 fee for planning and a $30 monthly subscription.
Schwab Intelligent Portfolios Premium will be shut down in Q1 2026, the company disclosed in SEC filings this month. A Schwab spokesperson said the firm still believes “in the power of digital advice.”
Schwab will continue offering its basic robo-advisor automated investing service, Schwab Intelligent Portfolios, which does not charge a fee and requires account minimums of $5,000. Schwab Intelligent Portfolios Premium debuted in 2019.
“Since we introduced Schwab Intelligent Portfolios Premium, we’ve enhanced and expanded our broader capabilities — giving clients more ways to access financial planning and manage income. With these broader capabilities now in place, we are retiring Schwab Intelligent Portfolios Premium,” said the Schwab spokesperson.
Schwab’s move to end its hybrid robo-advisor tier follows several other robo-advisor pullbacks from other financial institutions. JPMorgan cited weak client demand in its decision to end its robo advisor business last year, with US Bank’s Automated Investor and UBS’s Advice Advantage being other robo services that shuttered this year.
Josh Brown, a popular media commentator and CEO of Ritholtz Wealth Management, published a piece headlined “The war is over. Human advisors won,” following Schwab’s robo pullback. Brown’s RIA has about $6.5 billion AUM and struck a custody deal with Altruist earlier this year.
“The robo-advice era is over. Now it’s just advice. Some companies deliver it digitally. Some deliver it digitally with human assistance,” Brown said Dec. 21 on LinkedIn. “Some deliver it humanly but with digital assistance. And everyone, from Wealthfront to Wells Fargo and all firms in between, is somewhere along the same continuum — the fee lever in one hand and the service lever in the other, just trying to perfect the equilibrium between these ancient trade-offs.”
Schwab was one of the first major brokerages to enter the robo space, launching Intelligent Portfolios in 2015. Robo-RIA platform Wealthfront made its IPO debut earlier this month, while Betterment and Vanguard are also active competitors in the robo advisor space.
“Schwab’s decision to shut down Intelligent Portfolios Premium reflects a growing industry trend of consolidation and refocus,” said Mike Watson, head of Axos Securities at Axos Financial, a bank that offers RIA services. “Schwab’s model made the robo the main point of contact, turning the advisor into a paid provider instead of a trusted partner.”
Robinhood’s robo advisor platform called Robinhood Strategies passed $1 billion AUM within seven months of launching this year. That platform charges a .25% annual management fee. Robinhood’s CIO Steph Guild told InvestmentNews in October that the company envisions developing a hybrid product that combines digital and human financial advice.
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