Schwab CEO: 'Absolutely Open' to Event-Based Prediction Markets

Rick Wurster, President and CEO of The Charles Schwab Corporation, joins Bloomberg Businessweek Daily to discuss the firm's latest earnings report, adding that Schwab is "absolutely open" to adding a prediction market feature to its platform "within the context of an investment portfolio." Wurster says that at the moment, prediction markets aren't high on the list of client wants and needs, and also says that as trading and client volume remains robust, Schwab isn't seeing undue geopolitical concern from clients. Wurster speaks with Carol Massar and Tim Stenovec.

Charles Schwab Corp. reported a surge in average daily trading volume in the fourth quarter as retail investors sought to take advantage of the end of a strong year for the stock market.

Total net new assets for the quarter totaled $158.2 billion, more than the $144 billion projected, and daily average trading volume jumped to 8.27 million, up 31% from a year earlier. Still, net revenue of $6.34 billion missed Wall Street analyst expectations of $6.37 billion for the last three months of the year. Adjusted earnings totaled $1.39 a share, matching analysts’ projections.

“Clients are conducting more of their financial lives at Schwab, with record engagement across wealth management, trading and banking,” Chief Executive Officer Rick Wurster said in a statement Wednesday.

Wurster has officially occupied Schwab’s top job for a little over a year, after taking the reins at the beginning of 2025. During the year, Schwab customers looked to the brokerage for guidance as they saw markets whipsaw in response to US President Donald Trump’s trade war and geopolitical uncertainty. Wurster’s advice to clients was largely to stay the course, though he observed customers “buying dips and selling rips” during points of volatility.

The CEO also has had to reckon with the rise of prediction markets, and how the wagers on everything from presidential elections to sports may impact a consumer’s financial decisions. Wurster said Wednesday in an interview with Bloomberg Television that he would be “absolutely open” to having event-based prediction markets on Schwab’s platform, as long as the wagers are rooted in forecasting things such as employment or inflation.

“That makes sense within the context of an investment portfolio,” he said. “It is not high on our clients’ list of things they want us to innovate for them, so we have focused our innovations in other areas that are of more interest to clients.”

Schwab isn’t interested in ever offering sports gambling though, Wurster said.

“Our mission as a firm is to make clients better off in their financial life,” he said.

Schwab’s total client assets for the fourth quarter came in at a record $11.9 trillion.

Given Schwab’s record volumes last year, the firm’s “2026 scenario does allow for a slight pullback in volumes to roughly 7.4 million daily average trades for the full year,” Chief Financial Officer Michael Verdeschi said on a conference call with analysts Wednesday.

“This level aligns more closely with volumes observed in early 2025,” and would lead to total revenue growth of 9.5% to 10.5% this year, he said.

In November, the firm acquired a marketplace for buying and selling shares of private companies for around $660 million, expanding into an offering that retail investors have more recently requested given how many companies are staying private for longer. Morgan Stanley bought a similar company in late October.

Schwab shares rose 1.5% at 2:50 p.m. in New York. They’ve gained 27% in the past 12 months, more than the 6% increase in the S&P 500 Financials Index.

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