The borrowing surge reflects an unprecedented spike in customer leverage used to fund tax-efficient portfolios. By creating institutional-grade offerings internally, the firm aims to formalize a trading behavior that clients have previously managed through personal margin loans to offset taxable gains.
Tuesday, October 20, 2026
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Schwab Margin Loans Hit Record $188B on Tax-Aware Demand
Business5 days ago
The broker is expanding its product line with specialized tools for high-net-worth clients to better manage their capital gains obligations. Charles Schwab's margin loan balances hit a record $188 billion this quarter, a 93% increase from a year ago, as retail investors adopt long-short strategies typically used by millionaires to minimize tax bills. To capture this demand, the company is developing its own proprietary versions of these tax-aware products.
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