Charles Schwab Corporation

Charles Schwab Corporation was founded on April 1, 1971, by Charles R. Schwab in San Francisco as a traditional brokerage firm and investment research newsletter publisher. The company pioneered discount sales of equity securities starting in 1975, after the Securities and Exchange Commission (SEC) ended mandatory fixed stock brokerage commissions.

In 1983, the Charles Schwab Corporation became a publicly traded company through an initial public offering (IPO). The IPO enabled the company to access capital markets for expansion and growth opportunities, marking a crucial milestone in Schwab's evolution as a leading brokerage and financial services corporation.

Charles Schwab & Co., Inc. launched its internet trading platform, Schwab.com, in 1995. This was one of the first brokerage firms to offer an online trading portal, allowing investors to execute trades online. This innovation played a significant role in the company's ability to provide accessible trading services to a wider range of investors.

In February 2000, Charles Schwab Corporation acquired U.S. Trust Corporation for $2.7 billion. This acquisition aimed to expand Schwab's business into wealth management and private banking, providing enhanced services to high-net-worth individuals. It represented Schwab's shifting focus towards comprehensive financial service offerings.

In 2006, Charles Schwab Corporation sold U.S. Trust to Bank of America for $3.3 billion. The sale was part of Schwab's strategic decision to refocus on core strengths in brokerage and investment services. The divestiture allowed Schwab to streamline operations and concentrate on expanding its customer base and financial services.

In October 2011, Charles Schwab Corporation launched a selection of commission-free exchange-traded funds (ETFs), making a range of these investment products more accessible to individual investors. This strategic move aimed to attract more clients to Schwab's platform by removing barriers and reducing costs associated with ETF trading.

Charles Schwab introduced Schwab Intelligent Portfolios in 2015, a robo-advisor service offering personalized automated investment advice and portfolio management. This service catered to the growing demand for affordable and efficient investment management solutions, utilizing algorithm-driven technologies to optimize portfolios.

On November 25, 2019, Charles Schwab Corporation announced its agreement to acquire TD Ameritrade for approximately $26 billion in an all-stock transaction. Expected to create a major brokerage industry powerhouse, this acquisition sought to capitalize on economies of scale and offer a comprehensive suite of services to an expansive client base.

Charles Schwab completed its acquisition of TD Ameritrade on October 6, 2020. This historic merger between two of the largest U.S.-based discount brokers aimed to broaden Schwab's client offerings and enhance its competitive standing within the financial services industry. The integration process involves substantial reorganization efforts to consolidate platforms.

In 2023, Charles Schwab introduced a personalized indexing solution to enable clients to tailor their indexes according to personal preferences and values. This innovative offering addresses the growing demand for customization in investment portfolios, allowing greater alignment with investors' ethical considerations and financial objectives.