Three Ways to Schwab

In the mid-1970s, Schwab pioneered lower-cost, direct market access for independent-minded investors. Since then, we’ve grown our company and now have three ways to reach individual investors — directly, with an independent investment advisor, or through employer-based retirement and stock plans. By doing so, we’ve expanded our reach and helped more people be financially fit. Today, millions of people have entrusted $1.6 trillion to us, making Schwab one of the nation’s largest brokerages.

“It doesn’t matter how much money you have to invest, Schwab treats you with fairness, empathy, and respect.”

Everyone matters, and our business is built to reflect that. Today, almost everyone can participate in the market — and half of Americans do. Schwab delivers the value those investors want, plus the personalized service they deserve, regardless of how much — or how little — any client has to invest.

A Pioneer in Advisor Services

Independent investment advisors and their firms need support to help their own clients succeed. That’s why we hold assets for more than 6,000 advisors, making us a leader in advisor services, one of the fastest growing segments of our industry. Schwab also provides business consulting, back office support, technology, and other services. We understand independent advisors. We work closely with them, from the long established to the newly independent, to improve their businesses, make their operations more efficient, and help them meet their clients’ expectations every day.

Breadth

We make it our business to understand and meet the broad range of needs people have at every stage of their financial lives. We help first-time investors build portfolios that follow time-tested theories of asset allocation and diversification. When people change jobs, we make it easy to roll over 401(k) assets into an IRA. For parents, our 529 college fund helps secure their kids’ education. And many people in retirement turn to our CDs and fixed income products.*

Bundle in Advice

Advice matters. That’s true of investing in general, and it’s true for the millions of Americans who save for retirement through a workplace 401(k). So when Schwab helps companies manage their retirement plans, easy and affordable access to advice is part of the package. Participants can get help and guidance from Schwab representatives by phone or through online and on-site education programs.

Offer More, Charge Less

Nothing erodes client financial success, day in and day out, more than high costs. Our scale and operating discipline allow us to reduce fees and lower our operating expense ratios on our funds, so we can pass along savings to our clients. We can also offer the Schwab One® brokerage account with no account service fees at all.

One-Stop Shop

From the very beginning, we believed that investors deserved the best financial products and services available, regardless of which company created them. That’s why we built our business to offer third-party products in addition to our own. Doing so enabled us to create Mutual Fund Marketplace®, an easy, quick, one-stop shop for mutual funds.*

Any ATM, No Fee (Even This One)

Giving clients access to their money shouldn’t cost them more money. That’s why Schwab rebates transaction fees when our clients use any ATM anywhere in the world, whether they’re withdrawing cash from their banking or brokerage accounts.*

Client Connection

Experience is a great teacher. We want to learn from our clients’ experiences, and we want to help clients learn from each other. Client Connection is an online forum that invites clients to share their perspectives and opinions. In addition to our business advisory councils and client surveys, what we learn from Client Connection helps inform our business: how we develop products, what technologies we invest in, and how we improve our service.

Schwab equity ratings^®

People need a consistent, reliable way to assess stocks. This is why Schwab developed a proprietary methodology to rate approximately 3,000 of the largest market-cap stocks each week. Schwab Equity Ratings assigns a report card grade — A through F — to identify stocks we believe will outperform or underperform the market for the next 12 months. Unlike traditional brokerage firms, we rate an equal number of stocks as “buys” and “sells,” relying on investment factors that matter to long-term stock performance.*

Active Investing

Thousands of Schwab clients trade more than 500 times a year. As independent and self-directed as these investors are, they still want tools and resources to stay on top of the markets. Our StreetSmart Edge™ software supports these investors by providing them with advanced, customizable trading tools that allow them to create and test trading strategies, efficiently analyze stock performance, and quickly make trades. StreetSmart Edge also helps active investors manage risk, set price conditions, and track gains and losses in real time.*

Exchange Traded Funds

People respond to a product that’s smart and affordable, like our proprietary Exchange Traded Funds (ETFs)†. Clients can trade ETFs commission-free online in their Schwab accounts, and our ETFs offer operating expense ratios among the lowest in the industry. Fifteen months after their launch, our proprietary ETFs surpassed $3 billion in client assets. Our approach to ETFs clearly pleased our customers, and other firms had to play catch-up.*

Banking and Brokerage

Our banking and brokerage services are linked, making it easier for people to manage their money. When customers open a Schwab One® brokerage account, they can get a Schwab Bank High Yield Investor Checking® account with no minimum balance requirement or monthly service charges.*

Anywhere, Anytime Apps

People rarely sit still. With our integrated brokerage and banking mobile applications, clients can keep moving with access to online trading, transaction histories, and real-time market information. Since we started offering wireless access a decade ago, we’ve looked for new ways to make access to Schwab accounts easier. These new apps take that commitment a step further, covering banking, Schwab-administered benefit plans, and Schwab 529 College Savings Plans.*

Fixed Income Solutions

Some investors tell us they use their portfolios to save for the future; others need investments to generate income now. That’s why we offer clients thousands of fixed income solutions, including bonds, mutual funds, and professionally managed accounts. Our five Municipal Bond Ladder Separately Managed Account strategies allow fixed income investors to shift their money away from aggressive growth investments toward conservative tax-advantaged solutions. Managed by PIMCO®, one of the most respected bond managers in America, these strategies are competitively priced and allow people to generate income when they need it most.*

It Takes Two. Sometimes More

We can’t do it all on our own and we’re okay with that. If our clients need a product or service we don’t provide, we reach out and work with the companies that do. Last year, we joined forces with global investment bank J.P. Morgan to give our clients greater access to new issue municipal bonds and award-winning fixed income research. We also made it easier to research and invest with an online new issue municipal bond calendar.*

Neither Bull nor Bear

Take the volatility of the marketplace, add dense economic data, and combine with a constant chorus of talking heads. It’s no surprise that investors are often confused. But Schwab’s perspective on the market is objective, accessible, and developed by experts such as Chief Investment Strategist Liz Ann Sonders and a team of market analysts. Using a fact-based approach, they offer exclusive written commentary and webcasts on Schwab.com that cut through the noise with a balanced read on the market.

“I don’t get this information anywhere else.”

Clients expect valuable knowledge and information from their financial services firm. How they get that information can make a big difference. We look for new ways to make it easier for clients to find and understand new opinions, perspectives, and studies on everything from the basics of money management to market trends to investing strategies. And when highly relevant information emerges, our representatives can keep clients in the loop by e-mailing our timely updates.

Schwab Moneywise^®

Our MoneyWise website and workshop programs help people master the basics of money management. The site provides relevant information, news and opinion, as well as guidance on how to handle life events like saving for college or a change in employment. Weekly tips offer practical, easy-to-digest actions that have immediate, positive impact, while the site’s Twitter and Facebook posts help younger audiences understand that it’s never too early to learn how money works.

Community Outreach

Our commitment to improving financial literacy often means teaming up with organizations already doing good work in the community. We help teenagers through our Money Matters: Make It Count classes with Boys & Girls Clubs of America. Our volunteer programs allow employees to bring their financial knowledge and experience to local schools. And we provide financial counseling to adults through Single Stop USA in San Francisco, Goodwill Industries International in Indianapolis, and Foundation Communities in Austin, Texas, where we have an on-site counseling center.

“They help me with what to do next.”

Most financial goals are achieved in small steps. Schwab financial consultants help turn a financial plan into a less-daunting, step-by-step process. In addition, we provide online checklists, tools, and calculators, including suggestions on how people can better spend, save, and invest.

Screening for Service

Schwab’s hiring process is designed to target candidates who are passionate about helping others. For certain service center jobs, we use a screening test to help us identify applicants who are well-suited to working directly with clients. Once on board, new hires continue their training, learning how to listen to and understand what clients really need.

Gentle Reminders

Instead of waiting for calls to come in, we reach out to clients to provide gentle reminders. One way we do this is by creating phone-based teams dedicated to making outbound calls so that individuals, independent advisors, and company plan sponsors hear from us on a consistent basis.

Reward Service

At Schwab, compensation is linked to service. We reward our employees for listening well, exhibiting patience, and building the right solutions for clients.

“They treat me like an adult, not a potential commission.”

Impact^®

Being an industry leader means sharing ideas, creating connections, and expanding opportunities. It means caring for the health of the industry itself. That’s why Schwab created IMPACT, one of the largest industry events for independent investment advisors. Every year, IMPACT brings together presenters, exhibitors, and subject-matter experts to help independent advisors grow their client bases, create stronger industry relationships, and develop the strategies that will help them help their clients prepare for the future.

Service in the First Person

When we say, “Talk to Chuck,” we really mean, “Talk to Nina.” Or Stephen. Or Alma. This means that when clients call, they talk to a person — someone who knows their name and their history with Schwab. This, of course, applies to individual investors who have a personal relationship with their financial consultant, but it’s also important for independent investment advisors and company plan sponsors. They need a go-to person who not only understands financial services, but someone who understands their business.

“Schwab is unambiguously different, from Chuck on down.”

Anyone who has met Chuck Schwab quickly realizes his passion for investors. Nearly four decades ago, he founded this company based on a personal vision for how investing should be — more accessible, affordable, and understandable. Today, more than 12,000 employees share that vision.

Millions of
Conversations a Year

One-on-one conversations make a difference. In a single year, Schwab call center representatives personally answer more than 13 million calls. In addition, financial consultants at Schwab branches conduct about 600,000 face-to-face meetings a year. That’s a lot of time spent talking to clients and helping them stay on the path to financial fitness.

We Don’t Watch the Clock

The difference between a three-minute phone call and a seven-minute call matters. In three minutes, Schwab reps can reset a password. In seven minutes, our reps can answer client questions and perhaps propose a solution. We see every conversation as an opportunity to help someone, so we resist putting arbitrary limits on the time our people spend with clients.

No-script Service

Not long ago, an outside organization interested in creating an alliance with us asked to see our call center script. Problem was, we didn’t have one. But that’s not a problem for our clients, who expect to be treated like individuals. At Schwab, we listen and respond to each client’s needs rather than reading from a script full of predetermined answers.

Direct Dial-back

Sometimes, one phone call isn’t enough to get all the answers a client needs. That’s why, when a call requires follow-up, we provide the direct number to call back the same representative our client talked to the first time.

24/7/365

People’s lives rarely stick to a schedule. They need help when they need it, not on Tuesday between 1 and 5. Schwab makes its technical and customer service available to clients 24 hours a day, seven days a week, 365 days a year.

DIY

Everyone wants great service but not everyone wants it the same way. Sometimes, people want to conduct business electronically — without direct personal service. Our systems process more than 250 million log-ins to Schwab.com, plus 14 million automated calls a year. At Schwab, do-it-yourself is a choice, not a last resort.

New Client Concierge

Regardless of the size of their accounts, many new clients are assigned to Schwab investment professionals to help with paperwork and asset transfers — and to connect them with other Schwab services they might want. We want to make it as easy as possible to start investing with Schwab.

“I can hear their smiles.”