Who is Charles Schwab?

Published by Thomas Herold in Banking, Investments, Retirement

'Charles Schwab' is explained in detail and with examples in the Banking edition of the Herold Financial Dictionary, which you can get from Amazon in Ebook or Paperback edition.

The Charles Schwab Brokerage was created when “Chuck” Schwab started a discount brokerage in 1975. From this point on the company led the investing industry by innovating in a variety of ways. In 1982, they expanded their offerings  to include 24 hours per day, 7 days per week service. They launched their financial advisor service in 1987. The company began providing low cost online trading to customers in 1996.

Charles Schwab began rating investments according to a quantitative fact basis in 2002. As of 2006, they started offering affordable and professional investment advice. The company provided ETF investing with no commissions from 2009. By 2015 they had begun their automated and simple investing program. This Schwab Intelligent Portfolios does all the work of building, investing, monitoring, and re-balancing portfolios for their clients with no commissions or fees. It allows them to easily invest and monitor their positions without having to invest significant time in research, selection, and monitoring.

All of this pioneering over the years has helped Charles Schwab to become a powerful force in the brokerage world. They serve investors, employers, and financial advisors all at once. As of September 30, 2016, they hold an impressive $2.73 trillion of client assets. They number 1.6 million participants in their corporate retirement plans. Clients maintain 1.1 million banking accounts with them. Seven thousand different registered investment advisors are served by their products and services.

Even though Charles Schwab has excelled as a telephone and internet based advisory service, they also maintain an extensive network of branches and financial consultants. This includes over 330 branches and around 1,200 financial consultants who work for them. Their advisory solutions counts over $210.2 billion under management. The company takes great pride in having delivered more than 100,000 different financial plans as of September 30, 2016.

Charles Schwab has always been sought out by motivated investors who took pride in their personal engagement with their investments. Their clients are typically committed to investing and have an understanding sense of ownership. They wish to make and control their financial futures for themselves.

All of these characteristics and traits of the brokerage company have paid off handsomely in terms of not only size and assets, but also with numerous awards for 2016 and earlier years. JD Power and Associates’ 2016 Full Service Investor Satisfaction Study ranked Schwab the Highest in Investor Satisfaction Among Full Service Brokerage Firms.

Fortune Magazine chose Charles Schwab as one of its Top 50 Most Admired Companies in the World. The magazine gave them its number one rankings for their Innovation and Social Responsibility in Key Attributes of Reputation categories. They received the number two ranking for the category of Securities and Asset Management.

Gallup has also recognized Schwab with its Great Workplace Award. For the fifth year in a row in 2016, they took one of the top 35 spots for companies acknowledged for possessing workforces which are most engaged in the world.

The company celebrated its 40th anniversary in 2015. In this time, they have successfully navigated and led with being a telephone centered discount full service brokerage, a branch network based one, and an Internet platform brokerage services provider. Despite being discount, they still rank at the top of their category for client satisfaction, most admired companies, and engaged employees.

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The term 'Charles Schwab' is included in the Banking edition of the Herold Financial Dictionary, which you can get from Amazon in Ebook or Paperback edition.