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Schwab to offer free robo-broker for newbies

Discount broker is weeks away from starting service aimed at nurturing new clients

Published Sun, Oct 5, 2014 · 09:50 PM

New York

CHARLES Schwab Corp is weeks away from introducing an automated investing service aimed at winning business from novice investors it does not currently serve, company officials told Reuters.

The service is being developed in-house and likely will be free, giving the San Francisco-based discount brokerage pioneer a leg up on a slew of upstart firms known as robo-brokers that charge management fees of 0.15 to 0.35 per cent of a client's assets.

It would position Schwab as the first conventional brokerage with its own robo-broker offering. In automated investing plans, clients fill out questionnaires about investment goals and risk tolerances. Their answers automatically determine the portfolios of …

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