Bloomberg Businessweek: “Schwab Trading Volume Swells to End Strong Year for Markets”

Date: January 22, 2026
Hosts: Carol Massar & Tim Stenovec
Guest: Rick Worster, President & CEO, Charles Schwab Corporation

Episode Overview

This episode spotlights Charles Schwab's exceptional Q4 2025 results, highlighting the surge in trading volumes as retail investors capitalized on a strong market year. Carol and Tim speak with Schwab's CEO, Rick Worster, exploring Schwab’s record performance, client trends, innovations in trading, and industry outlook. The discussion ranges from prediction markets and private investments to the possibility of 24/7 trading.

Key Discussion Points & Insights

1. Record Quarter and Growth Drivers

[02:32–03:58]

• Schwab experienced a record-shattering Q4:

  • Earnings up 50% YoY.
  • Revenue up 22% YoY.
  • Net new client assets: $519 billion in 2025, with a record $163 billion in Q4 alone.

• Clients are consolidating more of their financial activities—trading, investing, banking, and lending—at Schwab, seeking a holistic approach.

• Schwab’s integrated platform results in higher client satisfaction and business growth.

  “When we do that, their satisfaction actually increases and our business grows. So it’s a win for them… and it’s a win for us.” —Rick Worster [03:43]

2. Prediction Markets vs. Gambling and Schwab’s Stance

[03:58–07:17]

• Tim and Carol press Rick on Schwab’s possible adoption of prediction markets.

• Rick distinguishes between financial prediction markets (e.g., making calls on inflation/employment numbers) and sports gambling (which he says is 95% of current “prediction market” activity).

• Schwab is open to financial prediction markets “in the context of an investment portfolio” but has deprioritized them, as customer demand is low and existing financial markets already serve this function.

  "Our mission as a firm is to make clients better off in their financial life… That’s the complete antithesis of what we do at Schwab.” —Rick Worster [05:06]

  • Schwab is not interested in sports gambling, citing its poor odds for customers.

  “We’ll leave the sports gambling… to the gambling houses, to the FanDuels, the DraftKings, and the Robinhoods.” —Rick Worster [05:39]

3. Innovation Priorities and Client-Led Innovation

[07:17–08:26]

• Schwab’s 2025 innovations focused on:

  • 24x5 active trading.
  • Enhanced mobile app for active traders and wealth clients.
  • New tax, trust, and estate capabilities, including a partnership with Wealth.com.
  • Advisor-focused improvements.

• Prediction markets ranked low in Schwab’s client surveys; practical, wealth-growing features are prioritized.

  “When we go out and survey our clients about what they want from us, prediction markets is low on the list.” —Rick Worster [08:14]

4. Democratizing Private Market Access: The Forge Global Acquisition

[08:26–09:25]

• Discusses Schwab’s acquisition of Forge Global, giving retail clients access to private company investments, an asset class previously reserved for institutions and the wealthy.

• Schwab aims to "democratize" alternative investing, bridging the gap for everyday retail investors.

  “Our Forge acquisition was really about democratizing investments in alternatives. We're now going to be able to bring it to all of our investors... and allow them to participate in private markets.” —Rick Worster [08:53]

5. Market Volatility, Geopolitics, and Schwab’s Approach

[09:25–11:30]

• Carol shifts to breaking news affecting markets—a potential US-European deal relating to Greenland and NATO, causing a market rally.

• Rick is unfazed, noting the “geopolitical noise” is to be expected; Schwab excels by offering hands-on client support during volatile periods.

  “This is the kind of environment in which we thrive because we’re not just an investment app. We took 30 million calls last year… We’re in… communities with actual people to help coach our clients…” —Rick Worster [10:56]

6. The Future: 24/7 Trading

[11:30–12:56]

• On NYSE’s 24/7 trading plans: Schwab is open, already offers 24x5 stock trading.

• Notes that most trading still occurs during regular hours and that set hours create liquidity and tighter spreads (a benefit to clients).

• Warns that with 24/7 markets, there’s risk of losing market efficiency, though customer convenience is recognized.

  “The market hours are a feature, not a bug… By limiting the market hours, you draw people in at the same time and create a lot of liquidity so that spreads are tight and trading efficiency is very high.” —Rick Worster [12:24]

7. Closing Sentiments: Market Optimism

[12:56–13:09]

• Asked for a 10-second outlook, Rick expresses cautious optimism.

  “The economy is on strong footing. Market’s been up three years in a row. Unless something changes, things look pretty good.” —Rick Worster [13:02]

Notable Quotes & Memorable Moments

• On the distinction between prediction markets and gambling:

  “Less than 5% of people who go on to one of these gambling apps take out more money than they put in… That’s the complete antithesis of what we do at Schwab.” —Rick Worster [05:06]

• On innovation priorities:

  “All of those are things that we think are far more impactful to our clients’ ability to grow their wealth than prediction markets.” —Rick Worster [07:49]

• On democratizing private investments:

  “We’re thrilled to bridge that gap and excited for what that could mean for our clients’ wealth.” —Rick Worster [09:11]

• On weathering volatility:

  “Whatever markets and geopolitics bring, we’re going to be ready for it and it’s going to help us distinguish what we stand for here at Schwab, which is helping our clients grow their wealth.” —Rick Worster [11:18]

Timestamps for Key Segments

• [02:32–03:58] — Schwab's record quarter and client trends
• [03:58–07:17] — Prediction markets vs. gambling, Schwab stance
• [07:17–08:26] — Innovation focus areas
• [08:26–09:25] — Access to private markets via Forge Global
• [09:25–11:30] — Volatility, geopolitics, market outlook
• [11:30–12:56] — 24/7 stock trading: possible and pitfalls
• [12:56–13:09] — Optimistic 2026 outlook

Tone & Takeaway

The episode maintains an upbeat, insightful tone—Rick Worster is candid about trends, strategic priorities, and realistic about hype topics like prediction markets and 24/7 trading. Schwab’s commitment to growth, innovation, and client-first ethics stands out. Key message: Schwab is experiencing growth by making complex financial products accessible and client experiences superior—while remaining conservative about speculative trends outside their values.