Schwab Raises Tax-Aware Long-Short Minimum to $10 Million, Halts New Margin Accounts
Updated
Updated · Wealth Management · Sep 3
Schwab Raises Tax-Aware Long-Short Minimum to $10 Million, Halts New Margin Accounts
2 articles · Updated · Wealth Management · Sep 3
Summary
$10 million is now the minimum for some new Schwab tax-aware long-short separately managed accounts, up from $1 million, under changes taking effect Sept. 16.
Schwab also stopped enrolling new clients and taking new funds in portfolio margin accounts, saying rapid growth in the strategy could strain its ability to support advisers and clients.
The tighter limits mark at least Schwab’s third pullback on the trade, which has drawn wealthy investors seeking capital-gains tax losses through complex bets for and against stocks.
Current clients keep existing terms, but the move adds to a broader retreat by major brokers after Fidelity indefinitely paused onboarding for similar tax-aware strategies.