Charles Schwab has launched a new program called Advisor ProDirect to support smaller advisors who want to transition to an independent model. The program is designed for advisory practices managing between $50 million and $300 million in assets. Shawnette Gauer of Schwab Advisor Services (SAS) said the program focuses more on an entrepreneurial mindset and openness to coaching rather than just the assets under management (AUM) figure.
The fee-based program will provide additional resources for advisors who want to run their own businesses independently, complementing Schwab’s existing custody offerings. The service will cost advisors $5,250 per quarter or $21,000 annually, with an initial one-year membership that renews quarterly. Schwab says this platform is aimed at supporting smaller advisors or those transitioning from broker-dealer firms who want to break into the RIA space.
“With client demands evolving rapidly, many advisors see the RIA model as their best path forward, but they face a complex array of choices for every aspect of their business,” said Brad Losson, head of enterprise solutions at Schwab Advisor Services. “That complexity can hold them back.
Advisor support for independence journey
Schwab Advisor ProDirect is our answer: a program built to ease their journey, optimize their operations, and help them thrive over the long term.”
Advisors in the program will have access to a consulting team to strengthen their growth potential, a community of like-minded advisors, and support tailored for growth-oriented advisors. “This program provides firms with the support needed to help elevate their strategy, brand, and client experience from day one,” added Gauer. Schwab says the program follows a structured, four-phase approach to help advisors develop their firms:
Phase I – Launch: High-touch assistance for streamlining business and operations planning during the transition to independence.
Phase II – Learn: Connecting with dedicated Schwab consultants who offer expertise, focus, and ongoing mutual accountability. Phase III – Connect: Exclusive membership in a community of growth-focused peers and access to curated solutions from Schwab and third-party providers. Phase IV – Grow: Continuous coaching and support to implement the Guiding Principles for Advisory Firm Success, developed from nearly 20 years of Schwab’s RIA Benchmarking Study research.
While the program offers the promise of greater independence for sub-$300-million stockbrokers, the accompanying fees may realign the competitive dynamics among financial advisors and custodians. As this initiative unfolds, stakeholders will be closely watching the balance between opportunity and cost, and how Schwab’s new leadership navigates through this transformative period for the RIA industry.