Charles Schwab announced that it will discontinue its Schwab Intelligent Portfolios Premium service, effective December 18 2025. The premium tier, which combined automated portfolio management with human advisory support, will no longer accept new clients and will be phased out for existing customers by the first quarter of 2026.
The decision follows a period of modest adoption and limited profitability for the premium offering. Schwab’s leadership has emphasized a strategic focus on its core brokerage and wealth‑management businesses, where it sees higher margin opportunities and stronger growth prospects. By eliminating the premium tier, the firm can reallocate technology, sales, and support resources to its core brokerage platform and to high‑net‑worth initiatives such as the upcoming Forge Global acquisition and the iRebal platform for institutional advisors.
While the premium tier represented a small share of Schwab’s overall digital advisory assets, its discontinuation signals a broader industry trend of firms consolidating or exiting hybrid robo‑advisor models that struggle to scale and compete with pure‑play platforms. Schwab’s stand‑alone Schwab Intelligent Portfolios will remain available, offering a fully automated, low‑cost alternative for self‑directed investors.
CEO Rick Wurster said the move reflects Schwab’s commitment to “strengthening organic growth trends and increasing adoption of wealth solutions.” CFO Mike Verdeschi added that the firm is “reducing higher‑cost bank funding and returning excess capital to shareholders,” underscoring a focus on cost discipline and shareholder value.
The phase‑out aligns with Schwab’s broader strategy to deepen its high‑net‑worth and alternative‑investment capabilities. The firm’s planned $660 million acquisition of Forge Global and the transition of its Institutional Intelligent Portfolios to iRebal by Q4 2025 illustrate a concerted effort to streamline advisory technology and concentrate on higher‑margin, high‑growth segments.
For clients currently enrolled in the premium tier, Schwab will provide transition assistance to the standard Schwab Intelligent Portfolios platform, ensuring continuity of service while the firm reallocates resources to its core brokerage and wealth‑management businesses.
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