Schwab’s $200 million charge points toward conflicts with cash spreads
Cash spreads are certainly nothing new, but with almost $64 billion in assets, Schwab is likely the largest robo-adviser to hold significant chunks of client assets in cash.
July 21, 2021 4 MINS
They say there’s no such thing as a free lunch, but Charles Schwab & Co. could have customers believing otherwise.
The discount brokerage’s Intelligent Portfolios platform has long advertised itself as having no advisory fees or commissions, but a $200 million charge announced this month relating to an investigation by the Securities and Exchange Commission highlights the subtle ways free investment platforms charge for services. While the robo-adviser doesn’t technically have an advisory fee, it does earn revenue through charging for its underlying exchange-traded funds and on interest collected on holding clients’ assets in cash.
Charles Schwab Review: Help for All Investors
gobankingrates.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from gobankingrates.com Daily Mail and Mail on Sunday newspapers.
Schwab takes $200 million charge as regulators probe its robo-advisory unit
bizjournals.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from bizjournals.com Daily Mail and Mail on Sunday newspapers.