SKN | Charles Schwab Records Strong October Asset Inflows as Client Engagement and Margin Borrowing Accelerate

Key Takeaways:

• Charles Schwab attracted $66.5 billion in core net new assets during October 2026, a record for the month and 50% higher than October 2025.
• Total client assets reached $13.27 trillion, representing 12% annual growth, while the company opened 409,000 new brokerage accounts for the eighth consecutive month of at least 400,000 openings.
• Daily average trades remained above 10.5 million, while margin balances reached a record $196.7 billion, highlighting stronger trading engagement and increased client borrowing.

The Charles Schwab Corporation (NYSE: SCHW) reported strong client activity for October 2026, reinforcing the scale of its brokerage, wealth management and banking platform. The company’s monthly activity report, released on November 13, showed record October core net new assets, continued account growth and elevated trading volumes. The figures indicate that Schwab continues to attract substantial client capital while benefiting from sustained participation across equity and exchange-traded fund markets.

Record Asset Gathering Strengthens Schwab’s Client Franchise

Schwab generated $66.5 billion in core net new assets during October, an increase of 50% compared with the same month in 2025. The result represents a record for October and demonstrates the company’s continued ability to attract client funds across its brokerage and advisory businesses.

Total client assets stood at $13.27 trillion as of October 31, up 12% year over year, although relatively unchanged from September. The distinction between asset gathering and market performance is important. Schwab reported $65.9 billion in total net new assets, while net market losses reduced client assets by approximately $131.7 billion during October. This explains why strong inflows did not translate into higher month-end assets.

Assets receiving ongoing advisory services also expanded. Investor Services assets increased 18% year over year to $953.9 billion, while Advisor Services assets rose 15% to approximately $5.89 trillion. These figures underline the importance of Schwab’s relationships with both individual investors and independent financial advisers.

Brokerage Expansion and Trading Activity Support Revenue Opportunities

Schwab opened 409,000 new brokerage accounts during October, marking the eighth consecutive month in which new account openings exceeded 400,000. Active brokerage accounts reached approximately 40.37 million, 6% higher than a year earlier. Banking accounts increased 13% to 2.45 million.

Daily average trades reached approximately 10.58 million, representing a 23% annual increase. Schwab attributed the activity primarily to strong client engagement in equities and ETFs. Net ETF purchases reached $37 billion during October, compared with $27.8 billion in September. Conversely, net mutual fund selling increased to $18 billion from $12.7 billion.

The figures suggest that clients continued reallocating capital across investment products rather than withdrawing from market participation. For Schwab, sustained trading and account activity support its transaction-based business and reinforce the scale of its brokerage platform.

Record Margin Balances and Declining Sweep Cash Require Attention

One of October’s most notable developments was the increase in client margin borrowing. Margin balances reached a record $196.7 billion, rising 75% from year-end 2025 and 86% compared with October 2025. The monthly increase was 5%.

Higher margin balances can support Schwab’s lending-related revenue, but they also indicate greater use of borrowed funds by clients. The development makes market volatility, collateral values and client repayment capacity important considerations for monitoring the business.

Meanwhile, transactional sweep cash declined by $7 billion to $485.8 billion. Schwab attributed the reduction to elevated client net purchasing activity and seasonal advisory fee payments, partially offset by strong asset gathering and increased short-credit balances associated with certain long/short strategies. Average interest-earning assets remained relatively stable at $452.8 billion.

What Schwab’s October Results Signal for Its Next Phase

Schwab’s October report presents a business with strong asset gathering, expanding client relationships and sustained trading activity. However, market losses, lower sweep balances and rapidly increasing margin borrowing create a more complex operating picture. For institutional investors and internationally diversified wealth holders, the relevant indicators are whether Schwab can sustain asset inflows, maintain client engagement and manage the balance between lending growth and liquidity-related balances. The next monthly reports will help determine whether October represents durable operating momentum or a period of unusually strong market participation. For a confidential discussion regarding global brokerage relationships and cross-border wealth structures, contact our senior advisory team.