How AI Stock Market Predictions Enable Better Trading for Charles Schwab Investors

This premium article on stock market predictions for Charles Schwab investors was written by Jessica Kremer – Analyst at I Know First.

Summary

  • During Q2 2020, Charles Schwab has been able to add new accounts and increase its daily average trades
  • The company stands out from its competitors since it offers trading in multiple global markets, and the implementation of fractional trading only further elevates their position as a leading brokerage.
  • I Know First can provide Schwab investors with multiple stock forecasting options, including custom stock market predictions for individual portfolios
(Source: Schwab.com)

Charles Schwab Corporation is a savings and loan holding company. The company provides investors with financial advisory services such as wealth management, securities brokerage, and banking. They also serve as a brokerage, where investors can access multiple investment products, as can be seen above. The large diversity of accounts and products ensures that all customers will find the perfect investment opportunity.

Charles Schwab Recent Success

The company had a mixed Q2, with results released on July 15, 2020. The company was able to realize a growth in daily active trades, up 126% from last year, at 1.62 million DARTS. This is an increase from the 1.54 million daily active trades in the first quarter of 2020. The brokerage also added 1.6 million new accounts. This includes the 1.1 million USAA accounts obtained from the sale of USAA’s portfolio to Schwab. Excluding the USAA accounts, the broker added 552,000 new accounts in the second quarter. All in all, Schwab now manages a record $4.11 trillion in clients assets from 14.1 million accounts.

Despite this success, the company also missed earnings estimates. As reported by CNBC, earnings came in at 48 cents per share, below estimates of 53 cents per share. Revenue also fell short of estimates, with the company making $2.45 billion in the second quarter in comparison to forecasts of $2.49 billion. However, these missed estimates may come as a result of the elimination of the platform’s trading fee. The company claimed in October that cutting trading fees to zero would cost the company up to $100 million in quarterly revenue. Despite the short term losses, this was a significant move to make. This move set the trend for other online brokerages to eliminate their trading fees – rendering Chalres Schwab a leader in the industry. 

How Charles Schwab Stands Out From Competitors?

(Source: InvestorJunkie.com)

Charles Schwab stands out from other online brokerages due to its strong online presence and vast amount of trading and account options. The age and reputation of the platform recruits more experienced investors than newer competitors. The platform also provides investors with a plethora of educational material, making the platform attractive to novice investors as well. Additionally, a comparison of Schwab with its top competitors demonstrates it to hold the lowest trading fees for various products. Schwab also recently acquired TD Ameritrade, which may have resulted in their missed earnings. The combination of the two companies resources will also only further entice more investors to use Schwab. 

(Source: Visual Capitalist)
(Source: Schwab.com)

Charles Schwab recently implemented fractional trading. This new service is particularly attractive to more novice investors, who may not have the skills and knowledge to trade more unstable stocks.  This development no longer renders price a significant factor in the decision to purchase a stock; instead, fractional trading allows Schwab investors to now focus on the valuation of the stock, instead of its price. All in all, this would allow Schwab investors to further diversify their portfolios, making the brokerage more competitive than ever. In addition to fractional trading, Charles Schwab also offers various global indices. Fractional trading, as well as a larger array of trading options, renders Charles Schwab a unique brokerage that attracts a wide variety of investors.

How Our AI Produces Accurate Stock Market Predictions?

Despite the past success of Charles Schwab as a brokerage, both private and institutional investors can benefit from our proprietary developed AI algorithm. Our algorithm generates predictions on expected price movement. It then estimates the relative magnitude of the price change. Our model is 100% empirical, meaning it is not subjected to human bias, but instead based on historical data. The algorithm is also self-learning, and uses over 10 years of stock market data to constantly evolve, recalibrate, and enhance itself. Whether a private or institutional investor, using our algorithm would provide an objective and statistically driven decision, helping all investors be more confident in their decisions. 

How Good I Know First AI Algorithm Is for Fractional Trading?

I Know First provides investors with stock market predictions for various companies in multiple industries. With Schwab’s new fractional trading, many investors who purchase stock in Apple, Netflix, or other blockbuster companies, could benefit from our forecasts. Our Apple evaluation report demonstrates the success of our algorithm in casting predictions for these companies. As can be seen below, our stock market predictions provide investors with high hit ratios, earning a 100% hit ratio for the year forecast. Similarly, regarding our Tesla evaluation report, we can see that our predictions performed extremely well, earning a 100% hit ratio for the year long forecast. All in all, our algorithmic modeling ensures investors make the most objective and informed decisions, allowing Schwab investors to earn greater profits. 

stock market predictions hit ratio
stock market predictions hit ratio

Why Schwab Investors Can Benefit from AI-powered Stock Market Predictions?

Many investors on Charles Schwab trade ETFs, since Investors Daily rated the platform as the #1 ETF trading tool choice. I Know First provides a ETF forecast package for both long and short time horizons. This 1 month long forecast, predicted on June 28, 2020, saw a 100% hit ratio. I Know First’s return average reached 11.88%, while the S&P 500 average only reached 8.29%.

stock market predictions

In addition to ETF forecasting packages, I Know First provides packages for multiple country indices for both short and long term. Regarding the graphic below, it is evident that much of the profit to be made off of the stock market is held in global trading indices. By utilizing I Know First’s algorithm forecasting, Schwab investors would have the confidence and knowledge to invest in foreign markets. As such, I Know First provides forecasts for US, Canadian, Brazilian, Israeli, Chinese, and many other markets. 

One example of the success I Know First has had predicting foreign markets can be seen with the Brazilian stock forecast. The below 3-day forecast, issued on July 19, 2020, also earned a 100% hit ratio. Our average beat out the country index average by 4.23%. 

stock market predictions

Additionally, regarding our Best Brazilian stocks evaluation report, we can further see the success of our algorithm. Our forecast consistently produced greater returns than the market index, as can be seen below. 

stock market predictions for BOVESPA

Which Stock Market Predictions Are Available to Charles Schwab Investors?

I Know First can offer Schwab users three different package options depending on their portfolio preferences. These packages would provide investors with objective and empirical information, allowing them to make more informed decisions. Our first package option includes our existing packages. Our existing forecasts come in different packages, with some being industry specific while others are not. For more information about our existing packages, click here

Additionally, I Know First can generate personalized stock forecasts that can be tailored to specific portfolio requirements and individual investors requests. In this instance, I Know First will provide the investor with predictions for the individual stocks in his or her portfolio.

Conclusion

Charles Schwab is a highly successful company with a distinguished platform from competitors. Despite its past success and investor materials, Schwab investors can still profit off of I Know First’s algorithm forecasting. I Know First offers forecast packages in multiple trading avenues which Schwab investors participate in, such as ETFs and various global markets. Our forecasting would then provide these investors with data-based predictions instead of human-conducted analytics. These forecasts can serve as indicators to support an investment decision or provide a second opinion to stakeholders. Overall, our forecasts in conjunction with Schwab’s already successful platform will allow investors to be more confident in their decisions.

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Please note-for trading decisions use the most recent forecast.