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Fidelity and Schwab one-two $4.95 price punch staggers industry with execs willing to go 'far, far, far further'

As the Boston and San Francisco giants forgo hundreds of millions in profits in play-for-market-share in higher-margin businesses -- like advice

Author Brooke Southall
March 2, 2017 at 8:03 PM
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Ram Subramaniam : This move will strengthen our leadership position

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Chuck Schwab reveals Part B, doubling-down on Walt Bettinger by making him co-chair, a day after Part A -- wagering $15 billion from the Schwab corporate treasury on the CEO's future leadership

The 84 year-old founder's elevation of his 61-year-old protege may foretell bigger fireworks from Rick Wurster who recently took over many of Bettinger's CEO duties, one executive recruiter says.

July 30, 2022 at 12:41 AM

Fidelity Investments loses Kathleen Murphy who largely caught up Fido to Schwab (near $4T) on the retail side by reversing net promoter scores

The 'no whining allowed' leader of the Boston giant's retail business, who oversaw $2 trillion in net new assets, was ready to exit but hung in through a year dominated by COVID-19 challenges

January 23, 2021 at 2:02 AM

Charles 'Chuck Schwab' called James Gorman to protest a two-broker poach, kicking off a hydra-headed legal battle, costing Morgan Stanley millions, so far

The Schwab founder and chairman invoked Charles Schwab Corp.'s zero-tolerance policy against Wall Street -- or RIA -- poaching of talent and AUM from Schwab branches.

March 9, 2023 at 1:23 AM

Fidelity will hire 4,000 staff in first half -- a staggering number but a tapering off from 'unprecedented' rate in 2021-2022 that catapulted it to 68,000 employees

The $10.3 trillion giant explains its hiring -- in a layoff environment -- as an RIA-like goal, namely having the human bandwidth to develop 'lifetime' relationships with its 40 million investors

February 17, 2023 at 2:49 AM

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Mentioned in this article:

Tiburon Strategic Advisors
Consulting Firm
Top Executive: Charles Roame

Nexus Strategy
Consulting Firm
Top Executive: Timothy D. Welsh

Randall Smith

Randall Smith

March 2, 2017 — 10:53 PM
I believe this is only the beginning. I predict with rising interest rates transaction fees will be $0. The major custodians have found many other revenue sources of which to capitalize. The larger question here, how will smaller broker/dealers compete in this new normal? What revenue sources do they need to adjust, what new pricing approach do they need to offer. I wonder how Fidelity's subsidiary, National Financial Services (NFS) conveyed to their B/D clients'; have they lowered their transaction fees on that side to allow their correspondent clients like Commonwealth Financial and many others to compete and remain viable in the long-term?
David Sandler

David Sandler

March 3, 2017 — 3:08 AM
Most of my trades are ETF's without commissions. The execution differences are speculative until objective proofs are put out there. Schwab's Intelligent Portfolios are far more sophisticated than Fidelity or most other robos. At these rates little reason for accounts outside Schwab or Fidelity. Time to consolidate?
Stephen Winks

Stephen Winks

March 3, 2017 — 6:18 PM
Schwab, Fidelity and all the major wirehouses can execute trades a zero cost or better.after the proceeds from the sale of their trading volume to other electronic crossing networks. Fidelity years ago found they can be very profitable if they charged nothing for trades. So, we are on the brink of a zero trading cost environment which is ideally suited to fiduciary duty. As a consequence tremendous emphasis is placed on prudent process (asset/liability study, investment policy, portfolio construction, performance monitor, authenticated back to statutory fiduciary duties) which literally put "financial services back into the financial services business. The free market does more for adoption of fiduciary duty than regulators. SCW

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