Unlike 2020 and the first few months of 2021, the third quarter did not encounter significant market volatility. While investors were interested in entering the markets, Schwab did not witness growth in new brokerage accounts.

In July, the company opened 402,000 new brokerage accounts, down 19% from the prior month’s levels. In August, new brokerage accounts remained unchanged at 402,000.

Because of market normalization and relatively low volatility, Schwab’s trading revenues are expected to have been hurt in the quarter under review.

In general, we should be cautious about this stock.$Charles Schwab(SCHW)$