Schwab CEO Rejects 'Gambling' Model of Robinhood and FanDuel

Firm focuses on financial planning and advice to attract younger investors

Feb. 4, 2026 at 6:23pm

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Charles Schwab CEO Rick Wurster says the firm is 'winning' with Gen Z investors by rejecting the 'gambling' model of trading apps like Robinhood and FanDuel. Schwab is doubling down on traditional financial planning and advice-led strategies to attract younger clients, who now make up one-third of the firm's new households. Wurster is also skeptical of the rise of prediction markets, seeing them as too closely tied to gambling.

Why it matters

As fintechs increasingly embrace gamification and prediction markets to drive user engagement, Schwab's more conservative approach highlights a philosophical divide in the industry. The firm's focus on long-term financial planning could appeal to younger investors seeking stability over short-term speculation.

The details

Schwab CEO Rick Wurster told Yahoo Finance that the firm is 'winning with the young client' by rejecting the 'gambling' model of trading apps like Robinhood and FanDuel. Instead, Schwab is doubling down on traditional financial planning and live coaching from thousands of traders. Wurster said Gen Z investors are 41% more likely to start investing before age 21 compared to previous generations, and they made up one-third of Schwab's new client households last year. The firm has also brought down its average client age by 10 years over the last decade through this approach.

  • Schwab ended 2025 with a 'strong finish', delivering $164 billion in core new assets in the fourth quarter.

The players

Rick Wurster

The CEO of Charles Schwab, who is leading the firm's strategy to attract younger investors through financial planning and advice rather than gambling-style trading.

Robinhood

A fintech company that has embraced the gamification of trading to attract younger users, which Schwab CEO Wurster is critical of.

FanDuel

A sports betting and fantasy sports company that Schwab CEO Wurster also cited as an example of the 'gambling' model that Schwab is rejecting.

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What they’re saying

“People generally don't get better off in their financial life via gambling. So that's something we're hesitant to do.”

— Rick Wurster, CEO, Charles Schwab (Yahoo Finance)

“We're winning with the young client”

— Rick Wurster, CEO, Charles Schwab (Yahoo Finance)

The takeaway

Schwab's rejection of the 'gambling' model embraced by some fintechs highlights a key philosophical divide in the industry. By focusing on traditional financial planning and advice, Schwab is betting that younger investors will prioritize stability and long-term growth over short-term speculation.