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Charles Schwab Assets Under Management (AUM)


Charles Schwab total assets under management. Charles Schwab AUM for 2017: client assets, brokerage accounts, mutual funds.

Charles Schwab Assets Under Management (AUM)


Charles Schwab is one of the largest broker-dealers in the United States. The company has over 1,200 financial advisors, operates more than 330 brick-and-mortar locations in 46 states, and serves 7,000 registered investment advisors. The company also manages its own FDIC-insured bank with over a million accounts.

The investment division of the financial behemoth has very deep pockets and a large customer base. Specifically, the brokerage house has the following numbers:

Charles Schwab total client assets $2.9 trillion
Charles Schwab Advisory solution assets $227.9 billion
Financial plans written More than 100,000
Retirement plan assets $100 billion

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Client assets represents the total amount of cash, securities, and other financial vehicles on deposit with Charles Schwab. This figure includes both managed and non-managed funds. The $2.9 trillion figure is actually up from $2.78 trillion at the end of 2016, but down 10% from 2015.

The broker-dealer has 10.2 million securities accounts, which is nearly ten times as many bank accounts. The 10.2 million figure includes 1.5 million retirement plan participants who have an employer-sponsored retirement account. The total number of trading accounts is up by 2% from December 31, 2016.

The company’s affiliate Charles Schwab Investment Management offers investment advisory services for clients who want the assistance of financial professionals. At the end of 2016, the firm managed $289 billion of discretionary assets, while $13 billion were managed on a non-discretionary basis. However, these figures have dropped. As of February 28, 2017, the company was managing only $227.9 billion total. In addition to portfolio management, clients can receive general financial advice, including a financial plan written by one of Schwab’s investment advisors.

The company’s banking division makes up only a small fraction of client assets. The bulk comes from brokerage accounts, and a large chunk of these are retirement accounts. The firm provides Individual Retirement Accounts and employer-sponsored plans. More than $100 billion of Schwab’s client assets come from retirement savers.

The broker also has a large market share of the registered investment advisor marketplace. The company provides various financial services for independent financial advisors. The 7,000 investment advisors Schwab works with manage $1.28 trillion. Schwab’s investment advisory service employs 1,800 workers to handle trading, operations, and custody issues.

Besides its US operations, Schwab also has offices in England, Hong Kong, and Puerto Rico. This is a smaller global presence than other brokers, such as Merrill Lynch, have.

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Benefits of a Large Firm


Going with a large brokerage house has several benefits. Because Schwab has a very large treasury, it can keep costs and expense ratios to an absolute minimum. For example, its robo-advisory service is actually free. It is the only broker to offer such a service at no cost.

Schwab funds also can have low expense ratios because they have billions of dollars invested in them. The company is able to be profitable while charging ultra-low prices for its funds. The savings are ultimately passed onto its customers.



Overview of Charles Schwab Investing


Charles Schwab is one of the "Big Five Brokerages": five largest brokerage houses it the Unites States (the others are TD Ameritrade, Etrade, Scottrade and Fidelity Investments). The firm has been in business since 1971.

Charles Schwab does not offer the most advanced trading technology, like the one at Thinkorswim, but for the average investor the trading and research tools provided are more than enough. Their advanced trading platform is called StreetSmart Edge (review). It is a feature-rich desktop application that comes with level II quotes, live streaming of CNBC financial news, and conditional orders. $1,000 minimum account balance is required to gain access to StreetSmart Edge.

Charles Schwab’s original reputation is built upon its brick and mortar business offering clients access to over 300 local branches for in-person visit. These locations provide in-branch workshops, guidance, advice, and help when a computer or a phone call is not adequate. Accounts with a minimum of $25,000 receive the Schwab Managed Portfolio service that provides access to investment professionals and advisors free of charge.

Beginners will find good resources at Schwab, including 24/7 customer support and a wide range of learning materials. Here's a rundown on how the broker can help new traders:

The Schwab website hosts videos and articles that discuss many important financial issues, such as estate planning, taxation, education savings, retirement, and inheritance. And of course a lot of material is devoted to securities, including not just stocks but also options and fixed-income products.

Stock and mutual fund reports are available to the broker's customers free of charge. Some of them are from Schwab, while others are published by independent third parties. These materials can help novices make better trading decisions.

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Updated on 9/21/2017.

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