Charles Schwab 3% Delivers Strong Q4: Higher Trading Volumes And New Assets Drive Growth

Charles Schwab, the leading provider of financial services, has reported a robust fourth quarter, with impressive growth driven by higher trading volumes and new assets. The company's strong performance is a testament to its commitment to client-centric strategies and innovative offerings.

Charles Schwab's success can be attributed to several key factors:

1. Increased Trading Volumes: The company reported a 22% year-over-year increase in clients' daily average trades, totaling 6.312 million. This surge in trading volumes was primarily driven by equity volumes, which surged following the election. Charles Schwab's ability to handle higher trading volumes is a testament to its robust infrastructure, which can process at least 20 million trades per day, up from eight million five years ago.
2. New Assets: Charles Schwab added $115 billion in core net new assets in the fourth quarter of 2024, bringing the full-year total to $367 billion. This 20% annual increase in net new assets reflects the company's ongoing progress following the Ameritrade integration. The company's strong performance in attracting new assets can be attributed to its commitment to operating through clients' eyes, providing great service and convenience without charging higher fees, and refusing to limit service for great value.
3. Expansion of Services: Charles Schwab has expanded its services to include banking, lending, and other financial products. This diversification has helped attract new clients and increase client engagement. For instance, Charles Schwab's client transactional sweep cash grew by $35 billion versus 3Q24, including a $25 billion increase in December due to typical year-end seasonality.
4. Strong Branding and Marketing: Charles Schwab has consistently invested in its brand and marketing efforts, which have helped increase its visibility and attract new clients. The company's strong reputation and customer satisfaction scores have also contributed to client retention and growth. In 2025, Charles Schwab was awarded America's Best Customer Service by Newsweek.

In conclusion, Charles Schwab's strong Q4 performance is a result of its commitment to client-centric strategies, innovative offerings, and expansion of services. The company's ability to attract and retain new clients, coupled with its robust infrastructure, has driven growth in trading volumes and new assets. As Charles Schwab continues to focus on its clients' needs and provide competitive, innovative, and comprehensive financial services, it is well-positioned to maintain its position as a leading provider of financial services.