Charles Schwab Corp.’s plan to eliminate trading fees pushed client assets to a record, surpassing $4 trillion, while the firm faced a decline in trading revenue.
Trading revenue plunged 58% to $86 million in the fourth quarter after the company introduced zero-commission trades. Customers opened 433,000 new brokerage accounts in the period, according to a statement issued Thursday.
The results are the first view of how the largest discount broker’s fee change, which was followed by rivals, is impacting Schwab’s bottom line. And it comes after the company’s $26 billion agreement to buy rival TD Ameritrade Holding Corp.
Schwab incurred $17 million in pretax acquisition-related expenses in the quarter, which weighed on profit. Schwab reported earnings of 62 cents per share, compared with the average estimate of 64 cents.
Other highlights included fourth-quarter net interest revenue – the money Schwab makes from client cash and the largest source of profits – falling about 2%, and total quarterly revenue declining to $2.6 billion.
"QuantumRisk, by design, recognizes that these so-called “impossible” events actually happen, and it accounts for them in a way that advisors can see and plan for," Dr. Ron Piccinini told InvestmentNews.
Advisors who invest time and energy on vital projects for their practice could still be missing growth opportunities – unless they get serious about client-facing activities.
The policy research institution calculates thousands in tax cuts for Washington, Wyoming, and Massachusetts residents on average, with milder reductions for those dwelling in wealth hotspots.
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Barely a decade old, registered index-linked annuities have quickly surged in popularity, thanks to their unique blend of protection and growth potential—an appealing option for investors looking to chart a steadier course through today's choppy market waters, says Myles Lambert, Brighthouse Financial.
