Key Stats
Founded: April 1971 (as First Commander Corporation)
Headquarters: Westlake, Texas (since 2020); San Francisco, California (1971–2020)
Founder: Charles R. “Chuck” Schwab
CEO: Rick Wurster (2024–present)
Employees: ~38,500
Revenue: $22.9 billion (2025)
Client Assets: $11.9 trillion
Stock Symbol: NYSE: SCHW
The Charles Schwab Corporation is an American multinational financial services company that provides securities brokerage, banking, wealth management, and investment advisory services to individual and institutional clients. The company ranks as the largest publicly traded brokerage in the United States, with $11.9 trillion in client assets, 46.5 million active accounts, and over 380 branches primarily in the U.S. and the United Kingdom.
Founded in 1971 by Charles R. “Chuck” Schwab as a traditional brokerage, the company became a pioneer in discount brokerage after the SEC deregulated commissions in 1975. By cutting fees in half and paying salespeople salaries rather than commissions, Schwab attracted individual investors who had previously been priced out of the securities market. The company went on to introduce numerous industry firsts, including 24-hour quotation service (1980), 24/7 order entry (1982), the Mutual Fund OneSource “supermarket” (1992), and early online trading (1996).
In 2019, Schwab upended the brokerage industry again by eliminating commissions for online stock and ETF trades, forcing competitors to follow suit. The company completed its transformative $26 billion acquisition of TD Ameritrade in October 2020, consolidating the two largest discount brokerages and migrating TD Ameritrade’s 12 million accounts to Schwab’s platform by September 2023. The combined company now offers a full suite of wealth management, banking, trading, and retirement services from its headquarters in Westlake, Texas.
Charles Schwab Corporation History
1963–1975
Origins & May Day Revolution
In 1963, Chuck Schwab and partners launch Investment Indicator, an investment newsletter with 3,000 subscribers paying $84/year. In April 1971, the firm incorporates in California as First Commander Corporation (a subsidiary of Commander Industries) for traditional brokerage services. Schwab buys out partners by 1972 and renames the company Charles Schwab & Co., Inc. in 1973. When the SEC deregulates commissions on May 1, 1975 (“May Day”), Schwab cuts fees in half and pays brokers salaries instead of commissions, pioneering the discount brokerage model. The first branch opens in Sacramento in September 1975.
1977–1986
Technology & Bank of America
Schwab expands nationwide, opening Seattle branch (1977) and offering extended service hours. In 1979, the company risks $500,000 on BETA, an automated back-office system that becomes the first in-house automation for a discount broker. Schwab introduces 24-hour quotation service (1980) and becomes the first to offer 24/7 order entry and quotes (1982). NYSE membership begins in 1981. Client accounts grow from 45,000 (1978) to 374,000 (1982). Bank of America acquires Charles Schwab for $55 million in 1983 ($53 million for Schwab’s 37% stake). By 1986, accounts reach 1.6 million with $308 million in sales.
1987–1994
Independence & Mutual Fund OneSource
Chuck Schwab buys back the company from Bank of America for $230 million and takes it public in 1987. Despite the October 1987 market crash and the 1989 San Francisco earthquake, Schwab continues expanding. The company launches services for independent financial advisors, the Schwab 1000 Fund, and the No-Fee IRA. In 1992, Schwab introduces Mutual Fund OneSource, a “supermarket” offering thousands of no-load, no-transaction-fee mutual funds—one of the industry’s most copied innovations.
1995–2000
Online Trading & Internet Era
In 1996, Schwab becomes the first major brokerage to offer online trading of stocks, mutual funds, and bonds, charging $39 per Internet trade versus $160 at traditional brokerages. Client assets surge during the late-1990s bull market. The company acquires U.S. Trust for $2.73 billion (2000) to enhance wealth management. PocketBroker mobile trading launches in 2000. Co-CEOs Chuck Schwab and David Pottruck lead through 1998–2003. At its peak, Schwab’s cost structure proves unsustainable when the dot-com bubble bursts.
2003–2008
Chuck Returns & Banking Expansion
After CEO David Pottruck is fired in July 2004 amid declining profits, Chuck Schwab returns to lead the firm, acknowledging it had “lost touch with our heritage.” The company refocuses on individual investors. Charles Schwab Bank launches in 2005, offering integrated checking and brokerage accounts. Schwab sells U.S. Trust to Bank of America in 2007. The “Talk to Chuck” advertising campaign debuts in 2005. Walt Bettinger becomes CEO in October 2008 as markets enter the financial crisis.
2008–2019
Mobile, ETFs & Zero Commissions
Despite the 2008 financial crisis, Schwab continues innovating—going mobile and cloud-based while ETFs grow in popularity. Client assets reach $2 trillion by 2012 and $3.85 trillion by late 2019. Schwab Intelligent Portfolios (robo-advisor) launches in 2015. In October 2019, Schwab announces it will eliminate commissions for online stock and ETF trades, forcing Fidelity, TD Ameritrade, and E-Trade to follow suit within days—reshaping the entire brokerage industry.
2019–2025
TD Ameritrade Acquisition & Record Growth
In November 2019, Schwab announces a $26 billion all-stock acquisition of TD Ameritrade—the largest brokerage merger in history. The deal closes in October 2020 and Schwab relocates its headquarters from San Francisco to Westlake, Texas. TD Ameritrade accounts migrate to Schwab’s platform over Labor Day 2023. Combined client assets reach $6 trillion at closing. Rick Wurster becomes CEO in 2024. By year-end 2025, client assets hit a record $11.9 trillion across 46.5 million accounts, with full-year revenue of $22.9 billion.
Founder
Charles R. “Chuck” Schwab (1937–)
Chuck Schwab was born in Sacramento, California, on July 29, 1937, the son of a lawyer who served as district attorney of Yolo County. He grew up in Woodland, California, before moving to Santa Barbara at age 12. Despite struggling with dyslexia—a condition he didn’t have a name for until his son was diagnosed in the 1980s—Schwab excelled at mathematics and science. He earned a B.A. in economics and an M.B.A. from Stanford Graduate School of Business.
At age 31, Schwab launched his brokerage in 1971 with the belief that the stock market should be open to everyone. When the SEC deregulated commissions in 1975, Schwab seized the opportunity to create a new kind of brokerage that charged half the industry rate and paid brokers salaries instead of commissions. He is often credited with “democratizing” investment by making the markets accessible to ordinary individuals.
Schwab served as CEO for most of the company’s history, stepping down in 2008 and returning briefly in 2004 after firing his successor. He remains Co-Chairman and the largest shareholder. As of January 2026, Forbes estimates his net worth at $13.5 billion, making him the 215th richest person in the world. A father of five, Schwab has authored several investment books and founded the Schwab Learning Center to help parents of children with dyslexia.
Major Acquisitions & Milestones
The Charles Schwab Corporation has grown through both organic innovation and strategic acquisitions, transforming from a discount broker into a diversified financial services giant.
- 1983: Bank of America acquisition ($55M) – Sold to Bank of America; bought back in 1987 for $230 million
- 1992: Mutual Fund OneSource – Launched the first mutual fund “supermarket” with thousands of no-load, no-fee funds
- 1996: Online Trading – First major brokerage to offer online stock, bond, and mutual fund trading
- 2000: U.S. Trust ($2.73B) – Wealth management firm; sold to Bank of America in 2007
- 2000: CyBerCorp – Active online trader technology
- 2004: SoundView Technology Group ($345M) – Equity research capabilities
- 2005: Charles Schwab Bank – Launched banking services with linked checking and brokerage accounts
- 2007: Sold U.S. Trust to Bank of America – Refocused on core brokerage business
- 2015: Schwab Intelligent Portfolios – Robo-advisor service with no advisory fee
- 2019: Commission-Free Trading – Eliminated commissions on online stock/ETF trades, forcing industry-wide change
- 2020: TD Ameritrade ($26B) – Largest brokerage merger in history; combined $6 trillion in assets, 28 million accounts
Charles Schwab Corporation Revenue
Charles Schwab generates revenue primarily through net interest income (from client cash balances and margin lending), asset management and administration fees, and trading revenue. The company reported record revenue of $22.9 billion in 2025, driven by organic growth, the completed TD Ameritrade integration, and increased client engagement with wealth management solutions.
Note: 2021 reflects the first full year including TD Ameritrade. 2023 revenue decline reflects interest rate environment and client cash reallocation patterns.
Charles Schwab Corporation Competitors
Schwab competes across multiple financial services segments including discount brokerage, wealth management, RIA custody, and retail banking. The 2019 elimination of trading commissions intensified competition, with firms now differentiating through technology, research, and advisory services.
| Company | Headquarters | Focus Areas |
|---|---|---|
| Fidelity Investments | Boston, MA | Brokerage, mutual funds, retirement plans, RIA custody |
| Vanguard Group | Malvern, PA | Low-cost index funds and ETFs, retirement investing |
| Morgan Stanley (E-Trade) | New York, NY | Wealth management, investment banking, E-Trade brokerage |
| Interactive Brokers | Greenwich, CT | Global trading, active traders, low-cost execution |
| Robinhood | Menlo Park, CA | Mobile-first brokerage, commission-free trading, crypto |
| Merrill Lynch (Bank of America) | Charlotte, NC | Wealth management, banking integration, advisory |
| Wells Fargo Advisors | St. Louis, MO | Full-service wealth management, high-net-worth clients |
| J.P. Morgan Wealth Management | New York, NY | Banking, self-directed investing, advisory services |
| Goldman Sachs | New York, NY | Investment banking, asset management, high-net-worth |
| Pershing (BNY Mellon) | Jersey City, NJ | RIA custody, clearing services, broker-dealer support |
FAQs
Is Charles Schwab a bank or a brokerage?
Charles Schwab is both. The company began as a discount brokerage in 1975 and launched Charles Schwab Bank in 2005. Today, the company operates as a bank holding company that provides securities brokerage, banking, asset management, and wealth advisory services. Schwab offers integrated checking accounts linked to brokerage accounts, high-yield savings, mortgages, and pledged asset lines alongside its traditional trading and investment products. As of 2025, Schwab has 2.2 million banking accounts in addition to its 38.5 million brokerage accounts.
What happened to TD Ameritrade?
Charles Schwab acquired TD Ameritrade in a $26 billion all-stock deal announced in November 2019 and completed in October 2020. The acquisition created a combined company with approximately $6 trillion in client assets. TD Ameritrade’s accounts were migrated to Schwab’s platform over Labor Day weekend 2023. Schwab retained TD Ameritrade’s popular thinkorswim trading platform and iRebal portfolio rebalancing tool but discontinued the TD Ameritrade brand. The Toronto-Dominion Bank, which owned 43% of TD Ameritrade, received approximately 13% of the combined Schwab (capped at 9.9% voting stake).
Why did Schwab eliminate trading commissions?
In October 2019, Schwab eliminated commissions for online stock and ETF trades to maintain competitive leadership as newer entrants like Robinhood had already popularized commission-free trading. The move forced Fidelity, TD Ameritrade, and E-Trade to follow suit within days. Schwab could afford to eliminate commission revenue (about 3-4% of total revenue) because its diversified business model generates the majority of income from net interest on client cash balances and asset management fees. The strategy increased client acquisition and assets under management, offsetting the lost trading revenue.
How much money do you need to open a Charles Schwab account?
Charles Schwab has no minimum deposit requirement to open a standard brokerage account, IRA, or most other investment accounts. This $0 minimum policy was designed to attract new investors and is part of Schwab’s mission to make investing accessible. However, certain services have minimums: Schwab Intelligent Portfolios (robo-advisor) requires $5,000, and Schwab Intelligent Portfolios Premium requires $25,000. Managed account services and certain banking products may have their own requirements.
Is Chuck Schwab still involved with the company?
Yes. Charles R. “Chuck” Schwab remains Co-Chairman of the Board, a position he has held continuously since founding the company in 1971. He stepped down as CEO in 2008, though he briefly returned in 2004 after firing his successor. Schwab remains the company’s largest individual shareholder and continues to participate in major strategic decisions. As of January 2026, Forbes estimates his net worth at $13.5 billion, the majority of which comes from his Schwab stock holdings. Rick Wurster became CEO in 2024, succeeding Walt Bettinger who served from 2008 to 2024.