For the vast majority of our clients, Charles Schwab is their custodian. In this role, Schwab is responsible for holding our clients’ assets and offering P&A services that help us support our clients. Every few years, Schwab runs a new client promotion. While this won’t apply to P&A clients whose accounts are already at Schwab, those of you who are visiting our site or reading our monthly client email as a prospective client might be interested to learn more.
Schwab’s current promotion is called Make the Move and it offers clients who are new to Schwab commission-free equity trading for 12 months. One of the reasons for offering this is to help offset the cost of realigning a portfolio to “our” stocks when a new client hires P&A. Where this really becomes valuable is when dealing with an individual stock portfolio. Schwab typically charges $8.95 per trade and P&A prefers to use 30-40 individual stocks in an account. Just on the buy side, that amounts to over $300 in savings. Factoring in the selling of the stocks that transfer in and this promotion becomes even more attractive.
Additionally, some brokerage firms or other advisors charge account closing fees or back-end sales loads when mutual funds are sold. By giving a new client free stock trades for a full year, this promotion will definitely reduce the economic impact of making a change.
This promotion is valid for new to Schwab clients who open an account from now through December 31, 2016. For more about this promotion and to find out if you qualify, please give us a call or send us an email.