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1963
Charles Schwab and two other partners launch Investment Indicator,
an investment advisory newsletter. At its height, the newsletter has
3000 subscribers, each paying $84 per year to subscribe.
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7 Routes to
High Profits
1971
Charles establishes First Commander Corp., a traditional brokerage,
with $100,000 borrowed from his entrepreneurial uncle, Bill Schwab.
1973
Charles buys out his other partners, assuming all of the company's
debt. He changes First Commander's name to
Charles Schwab & Co.,
Inc.
1974
The SEC mandates a 13-month trial period for the deregulation of
certain brokerage transactions. While many brokerages take the
opportunity to raise commissions, Charles seizes the opportunity to
create a new kind of brokerage, a discount broker and pitchman is
born.
1975
On May 1, the SEC officially approves "negotiated" commissions,
marking the birth of the discount brokerage industry. The Pacific
Coast Stock Exchange approves Schwab's membership. Schwab opens a
Sacramento office – its first branch outside of San Francisco.
1976
First ads feature Charles in shirt-sleeves: the Schwab brand is
born. Early foray into high-tech innovation: Bunker Ramo System 7,
begins delivering stock quotes to customers. Options Clearing Corp.
membership approved. First branch opens. By 1979 it brags of 33,000
customers.
1980
Schwab introduces 24-hour weekday quote service. Adopts
tagline: "America's largest discount brokerage." Branches: 23
1980
Schwab touts his service, discounts and "state of the art computer
system."
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Value Innovation:
Yin-Yang Strategies 
1981
In first big merger among discounters, Schwab acquires Kingsley,
Boye and Southwood. Also acquires Letterman Transaction Services and
Ridgeway. Becomes member of the New York Stock Exchange. Opens first
office in Manhattan.
1983
Bank of America officially acquires Schwab for $57 million. Company
opens up 500,000th customer account.
1984
Launches Mutual Fund MarketPlace with 140 no-load funds as well as
three new online products: SchwabQuotes, Financial Independence and
The Equalizer – a DOS-based application that would point the way
toward an online future. David Pottruck joins the firm as EVP of
Marketing and
Advertising.
1985
Introduces Equalizer online investing software and SchwabQuotes
touch-tone quote system. Launches standalone Financial Independence
software for managing personal finances on the PC.
1986
Abandons Financial Independence product for lack of fit with core
brokerage business.
1987
Completes management-led buyback from Bank of America for $280
million. In September, The Charles Schwab Corporation (the parent
corporation) completes IPO of eight million shares at $16.50. In
October, the stock market crashes, exposing Schwab to critical
margin exposure.
1988
Advisor Source, partnership with independent investment advisors
takes off. The early day-traders: a 900 number hawks news and tips
to trading junkies.
1989
Telebroker replaces Schwab Quotes; introduces touch-tone trading and
quote system.
1990
Opens Indianapolis call center.
1991
Acquires Mayer & Schweitzer, one of nation's premier OTC market
makers, now known as Schwab Capital Markets LP. Introduces Schwab
1000 Index Fund, along with Schwab U.S. Government Bond Fund. Opens
call center in Denver. Holds its first national conference for
independent investment managers. Launches first network television
advertising campaign. Branches: 158
1992
Introduces no-transaction fee Mutual Fund OneSource service. Adds
Schwab California and National Tax-Free Bond Funds. Opens call
center in Phoenix. The Charles Schwab Corporation establishes
Charles Schwab Trust Company. Opens Latin American Center in Miami.
Surpasses two million active investor accounts.
1993
StreetSmart online trading system replaces Equalizer.
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Internet
Business and
Revenue Models
1994
Schwab reaches $1 billion in revenues and $100 billion in customer
assets. Decentralization of the company into nine customer
enterprises.
1995
Schwab commits to moving enterprise to Electronic Brokerage
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How To Create Greater
Value Online
1996
Internet trading launched. Company introduces e.Schwab. You want
some advice? Schwab pitches Select List, its top mutual fund picks.
1997
The Charles Schwab Corporation (SCH) is added to S&P 500 Index.
E.Schwab and Schwab retail merge back together, one price for Web
trades. Opens one-millionth online account. Creates Charles Schwab
Europe as well as subsidiaries in Hong Kong and Cayman Islands.
Forms alliance with CS/First Boston, J.P. Morgan and Chase H&Q to
give Schwab customers access to IPOs. David Pottruck is named
Co-CEO. Introduces Mutual Fund Report Cards and $29.95 commission
for online equity trades up to 1000 shares. Branches: 272
1998
Giant on the Web. Schwab passes Merrill Lynch in total Stock Market
capitalization. Schwab hits 1.8 million online accounts.
Full-service firms firms play catch-up with me-too offerings.
1999
The former discounter goes upscale with U.S. Trust. Preaches asset
allocation,
diversification and other investing. Reaches over $700
billion in assets; almost $4 billion in revenues.
2000
Schwab reaches $1 trillion in assets. Acquires Cybercorp (later
renamed CyberTrader). Enters into global financial services alliance
with AOL Time Warner. Branches: 384.
2001
Dotcom meltdown forces Schwab into major layoffs and
examination of its transaction-based
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Business Model
.
2002
Further consolidation forces shut down of Schwab operations in
Australia and Japan.
2004
The Group operates 236 domestic branch offices in 43 states. On
16-Jan-2004, the Group acquired SoundView Technology Group, Inc. On
29-Oct-2004 the Group sold its Capital Market business to UBS.
2011
The company serves 7.9 million client brokerage accounts, with $1.65
trillion in assets, from over 300 offices in the U.S, one office in
Puerto Rico, and one branch in London.
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The Tree of
Online
Success
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