Schwab Advisors Report Higher Fees and Increase in Services

Posted on July 22nd, 2019 at 3:54 PM
Schwab Advisors Report Higher Fees and Increase in Services

From the Desk of Jim Eccleston at Eccleston Law LLC:

For many years, brokerage and bank Charles Schwab has been providing financial services to investors. However, Schwab advisors have been collecting higher fees from clients than previously reported. Amidst several widespread changes throughout the financial services industry, Schwab Advisor Services Executive Vice President Bernie Clark claims that advisors offer an increased amount of services in order to collect higher fees.

Clark has also stated that this is practiced by several advisory firms with all types of asset classes. “If you can lower cost, you increase yield. It’s prevalent across all asset types and pushing down what has been the economic model of our industry,” according to Clark. Additionally, Clark referred to the increase in fees as “marginal”, while advisors have added “quite a few services” to their commonly used repertoire.

On the securities front, transaction pricing throughout the industry has drastically decreased while operating expenses of common ETFs steadily have decreased. Clark referenced some newer services that include subscription pricing and self-directed investing, which have been utilized to attract younger investors as well as more lucrative accounts.

The attorneys of Eccleston Law LLC represent investors and advisors nationwide in securities and employment matters. The securities lawyers at Eccleston Law also practice a variety of other areas of practice for financial investors and advisors including Securities FraudCompliance ProtectionBreach of Fiduciary DutyFINRA Matters, and much more. Our attorneys draw on a combined experience of nearly 65 years in delivering the highest quality legal services. If you are in need of legal services, contact us to schedule a one-on-one consultation today.

Related Attorneys: James J. Eccleston

Tags: james eccleston, eccleston law, eccleston law llc, eccleston, schwab, charles schwab,

Return to Archive



This was the best of all possible outcomes and I cannot thank you and the team enough.

Michael S.


October 27, 2021
Former LPL Advisor Suspended For Completing 22 Trades Absent Client Consent

The Financial Industry Regulatory Authority (FINRA) has suspended and fined a former LPL advisor who allegedly completed 22 trades on behalf of a client without obtaining written consent. FINRA has issued a $5,000 fine and has suspended Michael Hartlett for 10 days.

October 26, 2021
Former Advisor Fails To Reverse Bar After Alleged $1 Million Theft From RBC

A former RBC Wealth Management advisor lost his bid to reverse an industry bar, according to an appellate decision issued by the Financial Industry Regulatory Authority (FINRA).

October 25, 2021
Firms Walk Thin Regulatory Line In Referring Self-Directed Clients To Advisors

While online trading platforms have surged in popularity during the pandemic, brokerage firms view self-directed investors as a source of new clients.