Schwab's trading volume swells at end of strong year for markets

Charles Schwab reported a surge in average daily trading volume in the fourth quarter as retail investors sought to take advantage of the end of a strong year for the stock market.

Total net new assets for the quarter totaled $158.2 billion, more than the $144 billion projected, and daily average trading volume jumped to 8.27 million, up 31% from a year earlier. Still, net revenue of $6.34 billion missed Wall Street analyst expectations of $6.37 billion for the last three months of the year. Adjusted earnings totaled $1.39 a share, matching analysts' projections.

"Clients are conducting more of their financial lives at Schwab, with record engagement across wealth management, trading and banking," Chief Executive Officer Rick Wurster said in a statement Wednesday.

Wurster has officially occupied Schwab's top job for a little over a year, after taking the reins at the beginning of 2025. During the year, Schwab customers looked to the brokerage for guidance as they saw markets whipsaw in response to U.S. President Donald Trump's trade war and geopolitical uncertainty. Wurster's advice to clients was largely to stay the course, though he observed customers "buying dips and selling rips" during points of volatility.

The CEO also has had to reckon with the rise of prediction markets, and how the wagers on everything from presidential elections to sports may impact a consumer's financial decisions. Wurster said on the conference call that Schwab is keeping an eye on the development of the space.

"Certainly if there is client demand, we are going to make them available," he said, adding that "it's not high on the list today — we're just not seeing a lot of client interest from our clients for those kinds of prediction markets." Still, he said, "we're looking at this. And if it becomes of client interest, we will have prediction markets. We're not burying our nose in the sand on this. We don't have a strong stance against prediction markets."

Schwab's total client assets for the fourth quarter came in at a record $11.9 trillion.

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Given Schwab's record volumes last year, the firm's "2026 scenario does allow for a slight pullback in volumes to roughly 7.4 million daily average trades for the full year," Chief Financial Officer Michael Verdeschi said on a conference call with analysts Wednesday.

"This level aligns more closely with volumes observed in early 2025," and would lead to total revenue growth of 9.5% to 10.5% this year, he said.

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In November, the firm acquired a marketplace for buying and selling shares of private companies for around $660 million, expanding into an offering that retail investors have more recently requested given how many companies are staying private for longer. Morgan Stanley bought a similar company in late October.

Schwab shares rose 2% at 9:38 a.m. in New York. They've gained 28% in the past 12 months, more than the 6% increase in the S&P 500 Financials Index.