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.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.
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.Go for it
"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.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.
I won't get anything from the referral, in fact I won't even be advised whether it was used. The goodies all go to the new client.... Schwab should tell its new client who the referrer was and what that person got paid for the referral.
I think I've seen enforced sharing, too, where both parties get a similar "gift". Maybe not for brokerage accounts though.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.
But you are a "true-blue friend"!I won't get anything from the referral, in fact I won't even be advised whether it was used. The goodies all go to the new client.
Real estate agents are the ones getting referral fees. The rest of the world does it under the table.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.
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.Looking for a referral code for Schwab so I can get a sign up bonus. Anyone have one they're willing to share?
Yes I did. The code in post #2 should still work.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.
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.Yes I did. The code in post #2 should still work.
http://www.schwab.com/public/schwab/nn/refer-prospect.html?refrid=REFERAQ28HHPTCould you create a new referral code if that’s not too much to ask?
DL you are awesome! Used the code you provided. Account now open. Now on to completing the requirements. Thanks much!!!http://www.schwab.com/public/schwab/nn/refer-prospect.html?refrid=REFERAQ28HHPT
Make sure you do whatever they require to get a referral bonus.
Not sure why you couldn't use the code I used. I generated a referral code twice and it was the same...DL you are awesome! Used the code you provided. Account now open. Now on to completing the requirements. Thanks much!!!
http://www.schwab.com/public/schwab/nn/refer-prospect.html?refrid=REFERCGRWTDR9Looking for a referral code for Schwab so I can get a sign up bonus. Anyone have one they're willing to share?
by Jake Hertz
by Aaron Carman
by Jake Hertz