Schwab CEO claims the company is attracting Gen Z by steering clear of the 'gambling' approach used by Robinhood and FanDuel

Charles Schwab Maintains Distance from Gamified Trading

While fintech platforms such as Robinhood (HOOD) and FanDuel are embracing game-like features to appeal to younger investors, Charles Schwab (SCHW) is steering clear of the digital betting trend.

“Gambling rarely leads to improved financial well-being,” Schwab CEO Rick Wurster shared with Yahoo Finance. “That’s why we’re reluctant to pursue that direction.”

Wurster emphasized that Schwab intends to leave gambling-focused ventures to companies like Robinhood and FanDuel, the latter of which did not respond to a request for comment.

Gen-Z Fuels Schwab’s Growth

Despite skepticism toward casino-style investing, Schwab’s expansion remains robust. According to Wurster, Gen-Z investors are 41% more likely to begin investing before turning 21 compared to older generations, and they represented a third of Schwab’s new client households last year.

By prioritizing comprehensive financial planning and offering live coaching—both in-person and online—Schwab has managed to lower its average client age by ten years over the past decade.

“We’re succeeding with younger clients,” Wurster noted, adding that there’s no need to offer sports betting to attract them.

Approach to Prediction Markets

Wurster’s cautious outlook also applies to the growing prediction market sector, which he divides into three categories. First, he mentions markets that provide probabilities for various outcomes—data Schwab may eventually incorporate into its services. Second, he recognizes markets tied to economic indicators like inflation or employment, which can be used as legitimate hedging tools. Lastly, he points out that the majority of the market—about 95%—is driven by sports betting, which does not align with Schwab’s mission.

When asked whether betting on economic data differs from making a random wager, Wurster candidly admitted that both involve an element of chance.

Steady Performance on Wall Street

Currently, Schwab’s prudent strategy is resonating with investors. Over the past year, Schwab’s stock has climbed approximately 27%, outpacing the S&P 500 (^GSPC), which rose nearly 14% in the same period. Although Robinhood’s shares surged over 53%, Schwab’s consistent growth continues to appeal to long-term investors.

JPMorgan analyst Kenneth Worthington recently reaffirmed an Overweight rating for Schwab, increasing his price target to $128. The company closed 2025 on a strong note, bringing in $164 billion in new core assets during the fourth quarter alone.