Schwab rises on move against rivals
By Greg Morcroft, CBS.MarketWatch.com
Last Update: 1:51 PM ET June 24, 2004
NEW YORK (CBS.MW) -- Shares of discount brokerage Charles Schwab (SCH: news, chart, profile) rose Thursday after the company said it would match its rivals' advertised trade-execution speed for customers using its StreetSmart Pro or Schwab Trader CT trading platforms.
"Other brokers keep trying to one-up each other with execution guarantees, but with our new match guarantee we've put an end to their game," Andy Gill, senior vice president of Schwab's Active Trader enterprise, said in a statement.
Schwab stock climbed almost 5 percent to $9.95 in afternoon trading.
The move is just the latest by Schwab to compete with aggressive rivals like Ameritrade and E-Trade in the battle for traders, especially the active trader market.
The active trader category has seen growth in the last few years as the stock markets recover and stabilize following the dot-com bust in 2000. See interview with Schwab CEO David Pottruck
In May, Schwab unveiled new, faster software for its CT Trader Pro product, offering streaming quotes, access to research and online client support. What's more, the discount brokerage lowered commissions for some trades last month.
The company also said that it would trim staff and likely miss analysts' estimates for second quarter earnings because of related revenue losses. See full story.
In its first quarter, Schwab acquired SoundView Technology Group, a research company serving institutional clients, for about $340 million. In a related move, it changed its customer account system, adding a higher-fee account category that provided more advice and research. |
