Schwab Raises Tax Strategy Minimum to $10M

The Charles Schwab Corporation is raising the account minimum for its tax-aware long/short separately managed accounts to $10 million starting 16 September 2026. The new threshold applies only to new accounts. Existing accounts will remain unaffected by the change.

The baseline minimum to fund these accounts was previously $1 million. Certain higher-leverage account setups previously required a $3 million minimum balance. In the second quarter of 2026, tax-aware long/short strategies contributed approximately 1% of company-wide revenue.

As of 30 June 2026, Schwab held $13.1 trillion in total client assets. Within Schwab Advisor Services, total client custodial assets stood at $5.7 trillion.

Other custodians have also adjusted rules for this strategy. Competitor Fidelity Investments previously raised its financing rate on existing long/short SMA accounts from 60 basis points to 152 basis points.