![]() ![]() ![]() Schwab has not, however, been proactive in helping customers maximize their cash balances, and generates significant revenue by putting the onus on the customer to be proactive if they want to obtain higher money market rates than Schwab offers. Schwab also provides qualifying customers with portfolio margining, which lowers margin costs based on the overall risk in the portfolio. Schwab does receive payment for order flow (PFOF), and this revenue stream has grown significantly for Schwab and other brokers from increases in trading volume during the pandemic Schwab’s PFOF revenue jumped 78% from 2019 to 2020, and other brokers saw 100% increases. Charles Schwab uses proprietary technology to route order, and rates highly for obtaining price improvement on 93.9% of orders, and an average of $0.01719 in savings per share. ![]()
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