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Charles Schwab’s Zero-Fee Plan Pushes Assets to Record $4 Trillion

  • Discount broker’s trading revenue fell after free commissions
  • Fourth quarter earnings trimmed by acquisition expenses
A Charles Schwab location in New York.
A Charles Schwab location in New York.Photographer: Michael Nagle/Bloomberg
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Charles Schwab Corp.’s plan to eliminate trading fees pushed client assets to a record, surpassing $4 trillion and sending shares higher, even as the firm faced a decline in trading revenue.

Customers opened 433,000 new brokerage accounts in fourth quarter, bringing the total to 12.3 million, according to a statement issued Thursday. Trading revenue plunged 58% to $86 million in the period after the company introduced zero-commission trades.