Yes, Schwab is becoming more of a discounter these days. Remember when it decided to sue TD Waterhouse parent Toronto-Dominion Bank
Yet that is why Schwab's seemingly bland report is actually pretty impressive. Coming in with flattish growth under that kind of environment bears a closer look. Just as amazing is that Schwab's pretax profit margins rose despite the cutthroat commission schedule.
Sure, the leading discount brokers like E*Trade
The company closed out the period by growing client assets to $1.077 trillion, an 8% improvement over the past year. With lower commissions and reduced or eradicated account fees, clients now have fewer reasons to wander over to the competition.
That doesn't mean you need to stay put, of course. Our Broker Center includes a discount broker table where you can compare the account minimums and commission rates from our participating sponsors. Still, I like what I see in this morning's report. Schwab has had a rough couple of years. Its stock is trading at a third of where it was five years ago. Yet it seems to be doing the necessary things to keep churn in check while finding ways to improve its operating efficiency. Now would be a good time to take a closer look at Schwab.
Charles Schwab is a Motley Fool Stock Advisor recommendation.
Yearn to learn beyond the turn of the churn?
- Check out our Broker Center if you are looking to make a switch.
- Yes, it's a price war out there in discount brokerage land.
- Schwab really did sue TD Waterhouse for inflating its commission schedule.
Longtime Fool contributor Rick Munarriz has been investing through online discount brokers since 1991. He likes the sector's chances, but he does not own shares in any companies mentioned in this story. The Fool has a disclosure policy. He is also part of the Rule Breakers newsletter research team, seeking out tomorrow's ultimate growth stocks a day early.
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