Schwab reduces, scraps minimums

Charles Schwab Corp. has reduced account opening minimums for all of its main brokerage and retirement accounts and eliminated minimums for many others, the firm announced today.
APR 20, 2007
Charles Schwab Corp. has reduced account opening minimums for all of its main brokerage and retirement accounts and eliminated minimums for many others, the firm announced today. The San Francisco-based discount brokerage firm also said it has eliminated any charges for accounts falling below the minimum. Minimums for opening a Schwab One brokerage account were slashed from $2,500 to $1,000. The previously required minimum initial deposit for IRAs, college saver and education savings accounts were cut from $2,000 to $1,000. Schwab also said it has waived account minimums entirely for clients who make the commitment to deposit $100 or more each month into the account via direct deposit or Schwab MoneyLink. The minimum to open a custodial account has been lowered from $2,500 to $100. “People expect greater value, and in the case of younger individuals, they want fewer barriers like high initial investment requirements and fees preventing them from starting early on saving and investing," said Jonathan Craig, vice president of Schwab Investor Services.

Latest News

Newsom wants nationwide billionaires tax as presidential bid may loom on the horizon
Newsom wants nationwide billionaires tax as presidential bid may loom on the horizon

“It’s time for an economic reset,” wrote the California governor, in a post on X.

Maryland regulators spank fledgling art-focused RIA Masterworks over registration snafus
Maryland regulators spank fledgling art-focused RIA Masterworks over registration snafus

Masterworks was launched in 2017 but its RIA, Masterworks Advisers, is just three years old.

Investors allege Miami operator took over $1.5 million in EB-5 scheme
Investors allege Miami operator took over $1.5 million in EB-5 scheme

One 2017 form, no broker license, and a $42 million gap they say surfaced on a webinar.

Gen X, millennials lag in retirement confidence amid knowledge gap
Gen X, millennials lag in retirement confidence amid knowledge gap

Fewer than half of Americans in their peak earning years feel on track for retirement, while many say limited financial knowledge and access to professional guidance are holding them back.

Advisor moves: Veteran-led UBS team overseeing $460 million migrates to Merrill
Advisor moves: Veteran-led UBS team overseeing $460 million migrates to Merrill

Meanwhile, Wells Fargo hauled advisors overseeing $825 million in the West Coast, while Wedbush has welcomed a seasoned professional from Stifel in California.

SPONSORED Who builds the income when the pension disappears?

Dan Biagini of American Equity says the steady decline of pensions, longer lifespans and a reset in interest rates are rewriting how advisors build retirement income

SPONSORED Why direct indexing stopped being optional

Direct indexing is on pace to outgrow ETFs and mutual funds. Northern Trust's Ken Lassner explains why the advisors who get it wish they had started sooner.