Originally company was set up as discount broker. The company started to operate in the mid 70s and trades were closed by phone. The process was inconvenient and unproductive. Company was immediately looking for improvement and implemented system for automate trade clearance and settlement. In the mid 80s company introduced PC software for on line trading using dial up connection and later automated voice-response telephone service. When internet emerged in 90s Schwab started to work on Interned brokerage platform. In 2000 Schwab acquired CyberTrader a direct access broker with their unique software described as easy to use advanced technology platform with access to many markets. That software became the engine for new Schwab's trading platform StreetSmart Pro. At 2001 Schwab was operating over 13 millions online accounts and ranked as number one discount broker. Most of the business was done online.
2. What is the "New Schwab" …show more content…
Investors started to look more for safe investment rather than high return and started to seek the help of professional advisors more. Analyst saw Schwab branch staff underqualified (they were originally taken as order takers) and necessary to change with more experienced and more expensive financial advisors. As a result company launched an alternative for investment research, Schwab Equity Ratings®, and two new advisory services for affluent investors, Schwab Private Client and Schwab Advisor Network. Schwab Advisor WebCenter was introduced (an advisor-branded website development and hosting service for independent investment advisors working with Schwab