The major online brokers — Charles Schwab, TD Ameritrade, E-Trade and Robinhood — have seen new accounts and trading activity surge this year during the coronavirus recession. Schwab, however, missed on the top and bottom lines of its second quarter earnings, which calls into question the sustainability of the zero-fee model it has pioneered.
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Charles Schwab says retail trading kept booming in second quarter amid market comeback
“As the impact of the Fed’s dramatic monetary easing during March extended across the yield curve, the further compression in asset returns outweighed growth in client cash sweep balances from both ongoing asset gathering and the USAA acquisition,” Schwab CFO Peter Crawford said.
