The Retail Trading Boom Is Back. Charles Schwab Is Quietly Cashing In.

When investors look at the discount broker industry today, fresh new names like Robinhood (NASDAQ: HOOD) probably get more attention than established names like Charles Schwab (NYSE: SCHW). That likely makes sense, given that Charles Schwab is one of the oldest companies in the sector. However, it would be a mistake to dismiss this financial giant. Here's how Schwab is quietly benefiting from the retail trading boom that's underway.

Schwab's numbers don't lie

In May 2026, Charles Schwab's customers held accounts worth $13.1 trillion dollars. That's a huge sum of money. For comparison's sake, Robinhood's total platform assets amounted to "only" $344 billion. That's not meant to be a put-down to Robinhood, which is a much younger company and has achieved impressive things in a very short period of time. It is meant to show just how large Charles Schwab's business really is. In fact, it was one of the companies that helped Space Exploration Technologies (NASDAQ: SPCX) go public.

Image source: Getty Images.

It is easier to grow a small business, but that doesn't mean Charles Schwab isn't growing. The company's customer assets increased 27% year over year in May. That's a massive increase, helped along by rising stock prices and new accounts. According to the financial giant, "New brokerage accounts opened during the month totaled 461,000, an increase of 37% versus May 2025."

Every new account is a chance to earn more money from commissions, margin interest, and fee-generating services (from asset management services to the management fees earned from Schwab's own family of exchange-traded funds). On the trading front, the company hit a record daily average of 11.8 million trades in May. Margin loans, meanwhile, were up 38% from the end of 2025.

Schwab may be an old dog, but it still has some good tricks

To be fair, Robinhood's growth opportunity is larger than Schwab's. But, as noted, it is easier to grow from a smaller base. There's a problem with that, as growth-enamored investors often push valuations to extreme levels. Notably, Robinhood's price-to-earnings ratio is 54x, while Schwab's is a far lower 19x.

Schwab is an industry giant that is quietly cashing in on the current trading boom. And you can buy it for less than half Robinhood's valuation. If you are considering buying a broker, don't get so caught up in Robinhood's growth story that you miss out on the strong growth Schwab is experiencing today.

Charles Schwab is an advertising partner of Motley Fool Money. Reuben Gregg Brewer has no position in any of the stocks mentioned. The Motley Fool recommends Charles Schwab and recommends the following options: short September 2026 $95 calls on Charles Schwab. The Motley Fool has a disclosure policy.