Anyone have a Charles Schwab referral code to share?

Thread Starter

dl324

Joined Mar 30, 2015
11,928
Looking for a referral code for Schwab so I can get a sign up bonus. Anyone have one they're willing to share?
 

jpanhalt

Joined Jan 18, 2008
10,533
When I saw that "promotion," it was almost enough to make me change brokers. And, I may still do that.

Ethics is not part of a broker's lexicon, but Schwab (and most others) still "solicit" trades. ("Solicit" is used in the technical sense. That distinction played a big part in resolution of some of the shenanigans involved in the 2008-2009 melt down.) In other words, if my broker recommends something to me, I expect that broker/brokerage to accept at least some fiduciary responsibility. Unfortunately, that may not be the case. Similarly, if I were to recommend a brokerage to someone, I would not do so for personal gain.

Let's say your physician refers you to another physician for specialty care. Would you be happy if that other physician paid a "finder's fee" to your doctor for the referral? That is not considered ethical in any jurisdiction in the US.

Note that the original notice did not include the section about a current client who made a qualifying deposit of new funds:
1579622193917.png

At a minimum, I believe the transition should be in the open. That is, Schwab should tell its new client who the referrer was and what that person got paid for the referral. The current offer is modified to include new funds by existing clients. That is a small improvement but doesn't eliminate the need for more transparency.
 

Thread Starter

dl324

Joined Mar 30, 2015
11,928
In other words, if my broker recommends something to me, I expect that broker/brokerage to accept at least some fiduciary responsibility. Unfortunately, that may not be the case.
That has never been a legal requirement, so it's not a common practice for brokers. I don't know how they make money now. In the past, they made money by encouraging clients to churn. My first broker usually made good recommendations. The rest were just in it for the money; which they made regardless of whether you did. With free trading, I don't know how they make money.
 

Thread Starter

dl324

Joined Mar 30, 2015
11,928
Go for it
Thanks. Didn't want to move to Schwab, but they're acquiring TD Ameritrade (who acquired my Scottrade accounts). I'm planning to do a self transfer before the deal closes so I get a signup bonus. They're the only brokerage I know of that requires a referral from an existing client for the bonus.
 

jpanhalt

Joined Jan 18, 2008
10,533
That has never been a legal requirement, so it's not a common practice for brokers. I don't know how they make money now. In the past, they made money by encouraging clients to churn. My first broker usually made good recommendations. The rest were just in it for the money; which they made regardless of whether you did. With free trading, I don't know how they make money.
"Solicited" trades are definitely in a different category from client initiated "non-solicited" trades, which is why that fact is so stated on statements. A fiduciary responsibility per se is not implied, which I why I said "some" responsibility. That distinction cost the banks involved in the "auction rate securities" debacle a lot of money. If you have doubts, search on the term ("ARS" and a student loan version, SARS) and lookup the complaints filed by the attorney generals of NY and Massachusetts during that period. In fact, their discovery was even put on the Internet. I don't know whether that is still accessible.

In brief,the banks involved were in a conspiracy to unload "toxic paper" on consumers as distinct from institutional accounts. Consumers got refunds about a year later. I haven't followed what happened for the institutional investors, but TI was on the hook for $1 billion and the Bank of Canada, as I recall, had about $10 billion. I doubt they took it lying down.
 

jpanhalt

Joined Jan 18, 2008
10,533
You are right. I simply read it wrong. I thought it was a referral bonus to the referrer. Offering incentives for opening accounts to the account holder is neither new nor problematic.

I was a little soured when Schwab bought the USAA investment business. I liked USAA.

Sorry.
 

wayneh

Joined Sep 9, 2010
16,402
You are right. I simply read it wrong. I thought it was a referral bonus to the referrer. Offering incentives for opening accounts to the account holder is neither new nor problematic.
I think I've seen enforced sharing, too, where both parties get a similar "gift". Maybe not for brokerage accounts though.
 

Analog Ground

Joined Apr 24, 2019
420
You are right. I simply read it wrong. I thought it was a referral bonus to the referrer. Offering incentives for opening accounts to the account holder is neither new nor problematic.
Real estate agents are the ones getting referral fees. The rest of the world does it under the table.
 

jazzblues

Joined Jun 6, 2020
0
Looking for a referral code for Schwab so I can get a sign up bonus. Anyone have one they're willing to share?
OP / dl324: did you manage to get a code and open and account with Schwab? If yes, would you mind doing the same favor? I’m looking for a code to open an account as well. Thanks in advance.
 

Thread Starter

dl324

Joined Mar 30, 2015
11,928
OP / dl324: did you manage to get a code and open and account with Schwab? If yes, would you mind doing the same favor? I’m looking for a code to open an account as well. Thanks in advance.
Yes I did. The code in post #2 should still work.
 

jazzblues

Joined Jun 6, 2020
0
Yes I did. The code in post #2 should still work.
dl324. Thanks for the swift response and taking the time. Unfortunately, the above code link did not work for me. The Schwab page that opens up when you click on it does say that your friend has shared a referral code and you can click on it to start an application. But for some reason it didn’t work. I’m guessing that Schwab has a way to ensure that referral links aren’t being reused. Just a guess.

Which brings me back to my previous Qs. Could you create a new referral code if that’s not too much to ask? :)

Either ways, thanks again!
 

Thread Starter

dl324

Joined Mar 30, 2015
11,928
DL you are awesome! Used the code you provided. Account now open. Now on to completing the requirements. Thanks much!!!
Not sure why you couldn't use the code I used. I generated a referral code twice and it was the same...

I hope you don't live to regret opening an account. Schwab is the only brokerage I'm aware of that charges a fee for partial account transfers ($25). But, most other brokerages will pay ACAT fees for closing another account if you ask.

So far I'm not impressed with their customer service.
 

jpanhalt

Joined Jan 18, 2008
10,533
It appears you independently decided to open a Schwab account. If not, get the referral code from the person who referred you. Is soliciting a code here from someone who didn't refer you honest?

Frankly, I think it is a stupid promotion. Why not give whatever amount to someone, anyone, who adds a certain amount of new money? I currently have a lot of money, for me, in Schwab. It is such promotions that may make me change. In the meantime, interest on cash or equivalents is negligible compared to Ally, Synchrony, Capital One, Goldman, and several other banks. Chuck, are you reading this?
 
Last edited:
Top