Charles Schwab Targets 8 Million Clients for $1 Trillion Advice Push as Fees Triple Returns
Updated
Updated · RIABiz · Jul 22
Charles Schwab Targets 8 Million Clients for $1 Trillion Advice Push as Fees Triple Returns
3 articles · Updated · RIABiz · Jul 22
Summary
Eight million Schwab self-directed clients with more than $1 trillion in assets are being targeted for migration into Schwab Wealth Advisory, CEO Rick Wurster said on the firm's earnings call.
The push is aimed at profitability: Schwab says wealth-advisory clients generate 3 times the return on capital of retail clients, while the service charges 0.80% on the first $1 million with lower tiers above that.
Only 5% of Schwab retail households now use a fee-based advice solution, but 31% say they are willing to pay for advice, giving Schwab what Wurster called an "unmatched conversion funnel."
Schwab is backing the effort with expansion spending, including 30 new wealth-advisory offices by year-end, as it tries to connect branch referrals more directly with advisors.
The campaign comes as Schwab sits on $13.08 trillion of client assets and argues it has just 2% of a $37 trillion U.S. retail advice market, even after reporting record second-quarter results.
Can Schwab’s new advisors deliver enough value to convince millions of DIY investors that a 0.80% fee is worth paying?
As Schwab targets its own investors for advice, can it prevent an exodus from its $5.7 trillion RIA custody platform?
Charles Schwab’s Strategic Shift: Unlocking Growth in the $37 Trillion U.S. Advice Market
Overview
Charles Schwab Corporation is driving strong growth by expanding its client base and deepening relationships, as shown by the addition of 2.7 million new brokerage accounts and $260 billion in core net new assets in early 2026. This robust asset growth supports Schwab’s strategic shift toward fee-based advice, with a major initiative to convert self-directed clients into advisory clients. By leveraging its large client base and focusing on comprehensive wealth management, Schwab aims to unlock further growth and strengthen its position in the competitive financial services market.