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Schwab's (SCHW) February Metrics Improve on Volatile Markets

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Charles Schwab (SCHW - Free Report) released its activity report for the month of February 2021. Total client assets were $6.90 trillion, up 2% from January 2021 and 79% from February 2020.

Client assets receiving ongoing advisory services were $3.4 trillion, up 2% from the prior month and 69% year over year.

Further, net new assets were $37 billion, up 8% from $34.2 billion recorded in January, and 52% from $24.4 billion recorded at the end of the prior-year month.

Schwab’s average interest-earning assets of $514.9 billion declined marginally from January but rose 85% year over year. Additionally, average bank deposit account assets totaled $167 billion, marginally down from the previous month.

Schwab opened 1,211,000 new brokerage accounts in February 2021, up 11% from the prior month. In the year-earlier month, the company reported 159,000 new accounts.

Schwab’s active brokerage accounts totaled 31.5 million at February-end, up 3% sequentially and 152% from the year-ago month. Further, clients’ banking accounts were 1.5 million, rising 2% from January 2021 and 9% from February 2020. The number of retirement plan participants was 2.1 million, up 1% sequentially and 21% year over year.

Schwab’s acquisition of TD Ameritrade in October 2020 led to the creation of a behemoth in the online brokerage space. This along with previous acquisitions has strengthened its position as a leading brokerage player. Further, by offering commission-free trading, Schwab has been able to witness a rise in client assets and brokerage accounts, which, in turn, is improving its market share.

However, near-zero interest rates and no chance of any increase in the same in the near term remains a major concern for this Zacks Rank #3 (Hold) company. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Over the past six months, shares of Schwab have jumped 89.4% outperforming 73.5% growth recorded by the industry.

Performance of Other Brokers

Interactive Brokers Group (IBKR - Free Report) released its Electronic Brokerage segment’s performance metrics for February 2021. The segment reported a substantial surge in Daily Average Revenue Trades (DARTs) for the reported month. Total client DARTs were 3,695,000, surging 175% from February 2020 and 12% from January 2021.

Tradeweb Markets Inc. (TW - Free Report) reported total trading volume of $20.4 trillion in February 2021. Average daily volumes were a record $1.06 trillion, up 19.9% year over year.

Upcoming Report

LPL Financial Holdings Inc. (LPLA - Free Report) is likely to come out with February figures soon.

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