Who doesn’t love FREE? Let’s face it, we all love a good bargain or free item. “Discount Chuck” is looking out for individual investors again, slashing online equity and ETF trading commissions from $4.95 to ZERO, making it even more affordable to invest. Schwab will continue to charge a commission for trading of foreign stocks, fixed-income investments, transaction-fee mutual funds, options, and large block trades that require special handling.
Since 2006, Charles Schwab has been disrupting the brokerage industry by periodically reducing their trading commissions. Revenue will be derived from Schwab’s other business lines like its US Bank (Schwab Bank) and from net interest income. Charles Schwab continues to be a leading provider of financial services with more than $3.72 trillion in client assets as of August 31, 2019. Covington has utilized Charles Schwab as our Custodian of client assets since our inception. We continue to choose Schwab because they are economical and have best in class service, industry leading technology, broad range of investment solutions, and account security safeguards; all of which allow us to best serve the needs of our clients. See below the historical milestones of the Charles Schwab Corporation.
Barron’s: October 7, 2019
Although (most) trading commissions have been eliminated, we will continue to manage your accounts in a manner that is consistent to our core investment philosophy.
“We are long-term investors, not short-term traders”.
Disclosure: Covington Investment Advisors, Inc. is a Federally Registered Investment Advisor. The information contained herein is general in nature and is provided solely for educational and information purposes and does not constitute legal, financial or tax advice. Opinions and forward-looking statements expressed are subject to change without notice. Past performance is no guarantee of future results. Covington Investment Advisors, Inc. uses reasonable efforts to obtain information from sources which it believes to be reliable and does not endorse, approve, certify or control the third-party content referenced.