History

Creating a New Kind of Brokerage

1974

• April: The SEC mandates a 13-month trial period for the deregulation of certain brokerage transactions.

1975

• May 1: The SEC mandates negotiated commission rates for all securities transactions. While many brokerages take the opportunity to raise commissions, Chuck seizes the opportunity to create a new kind of brokerage — a discount brokerage.
• September: Schwab opens its first branch in Sacramento, CA.

1977

• Schwab opens an office in Seattle — the first branch outside of California — and begins offering seminars for customers.
• June 6: The first full page ad runs in Barron’s.

1978

• Schwab extends service hours for customer service and quotes from 5:30 a.m. to 9:00 PST — an industry first.
• Client accounts total 45,000.

1979

• In a "bet-the-company" move, Schwab invests in the BETA mainframe system. The success of this automated transaction and record-keeping system demonstrates that technology can be a key growth driver.
• Client accounts total 84,000.

Meeting the Challenges of Growth

1980

• Schwab establishes the industry’s first 24-hour quotation service.
• Client accounts total 147,000.

1981

• Schwab becomes a member of the NYSE.
• The firm opens its first location in Manhattan.
• Larry Stupski is named President and COO of the firm.
• Client accounts total 222,000.

• Schwab is the first to offer 24-hour, 7-day-a-week order entry and quote service.
• The IRA account is introduced.
• The company’s first international office opens in Hong Kong.
• Schwab receives first national cable TV exposure.
• Client accounts total 374,000.

1983

• Bank of America acquires Schwab for $55 million.
• Schwab introduces the “new” Schwab One® asset management account.
• Client accounts surpass 500,000 and reach 648,000 by year-end.

1984

• Schwab introduces Mutual Fund MarketPlace® with 140 no-load funds.
• The company launches SchwabQuotes® and The Equalizer®  — a DOS-based technology solution that points the way toward an online future.
• Client accounts total 903,000. Client assets reach $5.1 billion.

1985

• Schwab records its 1 millionth client account in August. By year-end, client accounts reach 1.2 million with client assets of $7.6 billion.

1986

• Schwab becomes the first to offer 24-hour, 7-day-a-week mutual fund trading service.
• Client assets reach $11.3 billion.

1987

• Schwab opens its 100^th branch in Tyson’s Corner, VA.
• July: Management leads a buyback from Bank of America for $280 million.
• September: The Charles Schwab Corporation completes its initial public offering.
• Schwab introduces Financial Advisors Service (later renamed Schwab Institutional®) to serve independent investment advisors.
• October: Market crashes. Dow loses over 500 points.
• Client assets reach $14.3 billion.

1988

• Financial Advisors Service exceeds $1 billion in client assets after just one year of business.
• At year-end, Schwab’s total client assets reach $17.7 billion.

1989

• Schwab introduces TeleBroker®, an automated technology for telephone brokerage service.
• At year-end, total client assets reach $25.3 billion.

1990

• The company introduces Schwab Funds® money market mutual funds, starting with $5 billion.
• The Indianapolis service center opens as the first customer telephone service center outside of San Francisco.
• The first Asia Pacific center opens with bilingual services.
• At year-end, total client assets reach $30.6 billion.

1991

• The company introduces the Schwab 1000 Fund®, an equity index fund that reaches $191 million in client assets by year-end.
• Schwab opens its second call center, in Denver.
• Schwab hosts the first annual National Financial Advisors Conference, later renamed IMPACT®.
• Schwab launches its first network TV advertising campaign.
• At year-end, total client assets reach $47.5 billion.

1992

• Charles Schwab Trust Company® is created.
• The company introduces no annual fee IRA and no-transaction fee Mutual Fund OneSource© service.
• Schwab opens its third call center, in Phoenix.
• Latin American center opens in Miami.
• At year-end, total client assets reach $65.6 billion.

1993

• Charles Schwab Limited opens its first office in London.
• Employees move into new Orlando service center.
• At year-end, total client assets reach $95.8 billion.

1994

• Spanish-language TeleBroker service is introduced.
• Dec. 13: Chuck Schwab is featured on the cover of BusinessWeek in an article that calls the company “a radically new kind of brokerage firm.”
• Total client assets rise above $100 billion mark to $122.6 billion at year-end.

Leading the Online Investing Revolution

1995

• July: Schwab activates its first website at schwab.com®.
• U.K.-based discount broker ShareLink is acquired for $65 million.
• The Hampton Company is acquired, later to become Schwab Corporate & Retirement Services division. The 401(k) plan record keeper helps Schwab expand its presence in the retirement plan market.
• Cantonese TeleBroker goes live.
• Schwab introduces Global Investing Service to provide specialized foreign service expertise to all retail segments.
• At year-end, total client assets reach $181.7 billion.

1996

• Web trading goes live. Customers can trade listed and OTC stocks or check balances and the status of orders.
• The SchwabPlan is introduced, offering companies and their employees access to more than 1,300 mutual funds in a new, bundled 401(k) product.
• Schwab AdvisorSource® referral service is introduced nationally.
• At year-end, total client assets reach $253 billion.

1997

• The Charles Schwab Corporation is added to S&P 500 Index.
• The website registers its 1 millionth online account.
• Schwab’s Hong Kong office reopens after being closed since the 1987 market crash.
• Company offers $29.95 commission for online equity trades up to 1,000 shares; pricing is available to all clients.
• Mutual Fund Report Card is introduced with a single-page review of more than 7,700 mutual funds.
• December: David Pottruck is named co-CEO of the corporation.
• At year-end, total client assets reach $437 billion.

1998

• Chuck Schwab releases his second book, Charles Schwab's Guide to Financial Independence.
• TeleBroker adds voice technology.
• Two Canadian brokerages are acquired to create Charles Schwab Canada.
• Online accounts reach 2 million.
• At year-end, total client assets reach $594 billion.

1999

• The firm introduces the Schwab YieldPlus Fund™, designed to provide a potentially higher yield than a money fund, but with relatively lower risk than a longer term bond fund.
• The Schwab Fund for Charitable Giving, an independent public philanthropic fund, is launched. The fund educates donors and potential donors about philanthropy, helps them take a strategic approach to giving, and provides them with tools and resources to develop a lifelong giving program.
• Schwab launches after-hours trading for Nasdaq and select listed stocks. Orders can be placed online or by phone from 4:30 p.m. to 7:00 p.m. EST Monday through Friday.
• Schwab launches eConfirms, a new e-mail subscription service that delivers trade confirmations directly to customers, eliminating paper delivery.
• Schwab becomes the first online brokerage firm to offer its customers multiple stock order entry for all online trading accounts. The firm also introduces two new web-based tools including Schwab's advanced mutual fund screener, which allows customers to screen all funds rated by Morningstar, Inc.
  

Expanding our Services

2000

• Schwab and U.S. Trust merge. The corporation acquires the ability to serve the investment and wealth management needs of investors at every stage of their financial growth.
• PocketBroker™ wireless investing service is introduced.
• Schwab Mutual Fund OneSource tops $100 billion in assets.
• The Charles Schwab Corporation acquires CyBerCorp, Inc. to better serve active on-line traders.
• Chinese language news and research debut on Schwab’s Chinese website. Schwab also unveils a Korean language website dedicated to serving Korean investors in the U.S., and a toll-free service hotline dedicated to serving Vietnamese investors in the U.S.
• Schwab introduces pre-market trading for most Nasdaq and listed securities. Orders can be placed from 7:45 a.m. to 9:15 a.m. (eastern time) Monday through Friday.

2001

• CyBerCorp, Inc. changes its name to ® Inc. and enhances its service with improved software, educational tools and tiered pricing.

2002

• Schwab launches an alternative for investment research, Schwab Equity Ratings®, and two new advisory services for affluent investors, Schwab Private Client™ and Schwab Advisor Network.
• Schwab Core Equity Fund and Schwab Hedged Equity Fund are introduced, with both using the Schwab Equity Ratings model.
• Schwab Advisor WebCenter™ launches, an advisor-branded website development and hosting service for independent investment advisors working with Schwab Institutional.
• At year-end, total client assets reach $657 billion (excluding U.S. Trust).

2003

• Charles Schwab Bank® launches, introducing price and service guarantees on home mortgage loans.
• U.S. Trust acquires State Street Corp.'s Private Asset Management business, creating a full-service wealth management firm serving the New England region.
• Schwab Small-Cap Equity Fund is introduced.
• Schwab Retirement Plan Services, Inc. offers no-cost investment advice through third-party vendor GuidedChoice™.
• and the Chicago Mercantile Exchange (CME) team up to provide clients with electronic equities futures trading via the GLOBEX® electronic trading platform.
• Zacks Investment Research Inc. and Barron’s rank Schwab in first place for a three-year model stock portfolio.
• At year-end, total client assets reach $830 billion (excluding U.S. Trust).

Refocusing on Client Needs

2004

• Schwab announces the dual listing of its common stock on Nasdaq and the NYSE. Later in the year, Schwab sells its seat on the NYSE.
• Schwab and AXA Rosenberg complete a fund adoption agreement and introduce a new group of mutual funds, the Laudus Group, renamed the Laudus Rosenberg Funds.
• Schwab cuts equity trade pricing to as low as $9.95, reduces standard online equity commissions to $19.95 and expands access to $9.95 pricing for active traders.
• Schwab announces the resignation of David S. Pottruck as CEO and the reinstatement of Chuck Schwab as CEO.
• Schwab's composite stock list outperforms S&P 500 index.
• introduces per-share pricing, with trades as low as $1.
• Schwab Bank introduces the Charles Schwab Bank Visa credit card.
• Schwab and Boys & Girls Clubs of America launch a new program — Money Matters: Make It Count — to teach money management to teens.
• Schwab Institutional surpasses $300 billion in client assets.
• At year-end, total client assets reach $942 billion (excluding U.S. Trust).

2005

• In the second consecutive competition, Barron’s ranks Schwab in first place for a three-year model stock portfolio.
• Schwab expands access to Schwab Equity Ratings to all clients.
• Schwab introduces the Schwab Premier Equity Fund™, a fund inspired by the Schwab Equity Ratings award-winning model portfolio.
• Schwab Advisor Network marks its third anniversary with record performance.
• Schwab introduces target funds to help simplify retirement.
• New Schwab Portfolios™ leverage industry-recognized Schwab Equity Ratings.
• Charles Schwab Bank and Charles Schwab & Co., Inc. introduce integrated checking and brokerage accounts.
• Schwab Institutional debuts a new managed account platform for advisors.
• Schwab adds a new large-cap growth fund to its stable of mutual funds.
• Schwab eliminates account service and order handling fees for retail accounts and small business retirement plans.
• Schwab launches a new ad campaign based on the message Talk To Chuck™.
• Schwab rolls out its family of mutual funds onto third-party mutual fund platforms.
• Schwab makes the move to list its stock solely on the Nasdaq exchange.
• At year-end, total client assets exceed $1 trillion (excluding U.S. Trust).

2006

• Schwab Charitable Fund™ surpasses $1 billion in charitable contributions.
• Schwab's model portfolio ranks first place in the five-year category in Barron's annual competition after two consecutive wins in the three-year category.
• Schwab launches the Schwab Inflation Protected Fund™, a fund designed to offer protection from inflation while providing growth, and the Laudus Rosenberg International Discovery Fund.
• The firm announces a security guarantee, covering 100 percent of account losses arising from unauthorized account activity.
• The Schwab 1000 Index Fund celebrates 15 years without taxable capital gains distributions.
• Schwab lowers and simplifies pricing for equity, option, mutual fund and bond transactions.
• Schwab launches Schwab Managed Portfolios™, a suite of mutual fund portfolios for individuals with as little as $50,000 to invest who want to benefit from the investment expertise of Schwab’s professional money managers.
• Schwab Bank offers discounts on mortgage and home equity products to Schwab clients.
• At the annual IMPACT® conference, Schwab Institutional launches a new marketing and business development offering for independent investment advisors and announces the winners of the first IMPACT Awards™.
• November: The corporation announces an agreement to sell U.S. Trust, its wealth management subsidiary, to Bank of America.
• Schwab expands access to fixed-income investments through the Schwab BondSource™ platform to 22 hours a day, seven days a week.
• At year-end, Schwab reports total client assets of $1.24 trillion (excluding U.S. Trust), with 6.7 million brokerage accounts, 147,000 banking accounts and 542,000 corporate retirement plan participants.