Charles Schwab Corporation

The Charles Schwab Corporation
	File:Charles Schwab logo.svg Logo used since 2019
Company type	Public company
Industry	Financial services
Founded	April 1, 1971; 55 years ago in California, United States
Founder	Charles R. Schwab
Headquarters	Westlake, Texas, United States
Area served	Worldwide
Key people	Charles R. Schwab (Chairman), Richard A. Wurster (CEO)
Products	Banking, commercial banking, investment management, consulting, wealth advisory services, brokerage accounts, retirement plans, donor-advised funds
Website	www.schwab.com

The Charles Schwab Corporation is a multinational financial services firm based in the United States, specializing in banking, commercial banking, investment management, consulting, and wealth advisory services for both retail and institutional clients. By 2024, it oversees $10.10 trillion in assets under management and maintains 36.5 million active brokerage accounts, 5.4 million workplace retirement plan participant accounts, and 2.0 million banking accounts. Additionally, the company offers a donor-advised fund tailored for clients contributing securities. Headquartered in Westlake, Texas, Schwab operates more than 380 branches predominantly located throughout the U.S. and the U.K.

Originally established in 1971 under the name First Commander Corporation and rebranded as Charles Schwab & Co. in 1973, the company leveraged deregulation trends of the 1970s to become a pioneer in discount equity securities sales. After inaugurating its primary office in Sacramento and expanding to Seattle, Schwab made significant investments in technology and automation during the economic growth of the 1980s. It was a trailblazer in providing continuous, round-the-clock order entry and quotation services. Bank of America acquired Schwab in 1983 for $55 million; however, following the popularity of its no-fee mutual funds, founder Charles R. Schwab reacquired the firm in 1987 for $280 million.

History

In 1963, Charles R. Schwab along with partners initiated Investment Indicator, an investment newsletter attracting 3,000 subscribers who paid $84 annually. The company was incorporated in California as First Commander Corporation in April 1971 to offer brokerage services alongside newsletter publishing. By 1973, it adopted the name Charles Schwab & Co., Inc.

After the SEC authorized negotiated commission rates in 1975, Schwab launched its first Sacramento branch providing discount brokerage services. Client accounts doubled to 84,000 by 1979 compared to the previous year. The firm invested $500,000 in BETA, an automated system for back-office settlements, becoming the first discount broker to internalize automation processes. In 1980, Schwab introduced the industry's inaugural 24-hour quotation service and gained membership on the NYSE by 1981. By 1982, it offered nonstop order entry capabilities and established its initial overseas office in Hong Kong, expanding client accounts to 374,000.

Acquisition by Bank of America and return to independence

In 1983, Bank of America purchased Schwab for $55 million. The following year saw the introduction of 140 no-load mutual funds by Schwab. In 1987, Charles R. Schwab led a management buyback of the company for $280 million. The acquisition of market maker Mayer & Schweitzer in 1991 allowed Schwab to internally process customer orders. In 1997, Schwab was penalized with a $200,000 fine for not securing optimal trades for clients; this division was rebranded as Schwab Capital Markets in 2000. A London office was inaugurated in 1993.

The acquisition of The Hampton Company in 1995 brought Walter W. Bettinger into senior leadership; he assumed CEO responsibilities in 2008. In 1996, Schwab launched Web trading capabilities enabling clients to execute stock trades and monitor accounts online. Unhappy with their original website design, Schwab engaged Razorfish for a redesign that ultimately received industry acclaim.

In 2000, Schwab acquired U.S. Trust for $2.73 billion but divested it back to Bank of America for $3.3 billion in 2007 after U.S. Trust incurred a $10 million penalty for bank secrecy violations.

To bolster equity research offerings, Schwab purchased SoundView Technology Group in January 2004 for $345 million. David S. Pottruck served as CEO from 2003 until Charles R. Schwab replaced him in 2004 amid declining profits caused by lower trading revenues.

Following this leadership change, Schwab redirected focus toward individual investors and reversed prior fee hikes, which contributed to a recovery in earnings and a share price appreciation reaching up to 151% since Pottruck’s departure. Net asset transfers grew fourfold between 2004 and 2008.

During the 2008 financial crisis, the firm's YieldPlus fund experienced a -31.7% return resulting in $1.1 billion losses affecting investors including Charles Schwab; this fund was subsequently closed in 2011.

In April 2007, Schwab expanded its retirement plan offerings through acquiring The 401(k) Company.

Transition to NASDAQ

On December 15, 2005, Charles Schwab revealed plans to consolidate its stock listing solely on the NASDAQ, moving away from its previous dual listing on both the New York Stock Exchange and NASDAQ. This change included updating its ticker symbol from "SCH" to "SCHW," effective December 20, 2005.

Walter W. Bettinger, who had been serving as chief operating officer, was appointed CEO on July 22, 2008, taking over from founder Charles R. Schwab. Schwab retained the role of executive chairman and remained actively involved in the company’s leadership.

The firm returned its stock listing to the New York Stock Exchange on February 22, 2010.

In 2011, Charles Schwab expanded its capabilities by acquiring OptionsXpress along with Compliance11, Inc., enhancing both its trading platform and compliance software offerings. The following year, it strengthened its asset management services through the acquisition of ThomasPartners.

On May 26, 2020, Schwab purchased USAA's investment management accounts for $1.8 billion in cash. Shortly thereafter, on July 1, 2020, it finalized the acquisition of Wasmer, Schroeder & Company, an independent fixed income manager overseeing $10.7 billion in assets.

June 2020 saw Schwab launch its Stock Slices™ program, enabling fractional share investing and thereby increasing individual investors’ access to equity markets.

TD Ameritrade Acquisition

The acquisition of TD Ameritrade was completed on October 6, 2020, for $26 billion. As part of this transaction, Toronto-Dominion Bank obtained an approximate 12% ownership stake in Schwab. The integration process involved migrating TD Ameritrade accounts onto Schwab’s platform and culminated in the full shutdown of TD Ameritrade by May 2024. In early 2025, TD Bank divested its interest in Schwab.

Effective January 1, 2021, the company relocated its headquarters from San Francisco, California to Westlake, Texas.

Rick Wurster succeeded Walt Bettinger as CEO on January 1, 2025, following Bettinger’s retirement.

In November 2025, Schwab announced plans to acquire Forge Global for $660 million. This private shares marketplace acquisition aimed to broaden Schwab’s pre-IPO share offerings.

Executive Leadership

Chairman: Charles R. Schwab (since 1971)
Chief Executive Officer: Richard A. Wurster (since 2025)

Previous Chief Executives

Charles R. Schwab (1971–1998)
Charles R. Schwab and David S. Pottruck (1998–2003); co-CEOs
David S. Pottruck (2003–2004)
Charles R. Schwab (2004–2008); second tenure
Walter W. Bettinger II (2008–2024)

Marketing Initiatives

In 2004, Charles Schwab selected Havas Worldwide (formerly Euro RSCG) as its comprehensive advertising agency and launched the well-known Talk to Chuck campaign in 2005. This campaign was featured across television, print media, digital platforms, billboards, and branch locations and received acclaim for its catchy slogan and impactful communication. In 2013, Schwab appointed Crispin Porter + Bogusky (CP+B) as its primary creative agency while maintaining Havas for ActiveTrader and optionsXpress advertising efforts. CP+B introduced the Own Your Tomorrow campaign that same year and later developed promotional content for Schwab’s Intelligent Portfolio robo-advisor service in 2015.

Non-disclosure of robo-advisor fees and portfolio allocations

In June 2022, the U.S. Securities and Exchange Commission imposed a $187 million penalty on Charles Schwab for failing to properly disclose fees and fund allocations associated with its robo-advisor platform between March 2015 and November 2018. The SEC determined that Schwab misrepresented information to clients by concealing certain charges and the impact of cash drag on their investments. The firm earned profits through interest rate differentials by directing client cash to its affiliated banking entity, which then lent out the funds while compensating clients with lower interest rates.

External links

Official website