Schwab Aims for Active Traders
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In an effort to benefit from the growing number of active online traders, sector leader Charles Schwab Corp. Wednesday acquired CyBerCorp Inc.
CyBerCorp provides a number of Internet-based tools and services for active online investors. Schwab will exchange 13.7 million shares for all outstanding CyBerCorp equity in a deal valued at $488 million. The deal has already been approved by both companies' boards and is expected to close by the end of the first quarter.
Philip Berber, founder of Austin, Texas-based CyBerCorp, will continue with the firm as chairman, while Schwab's Jim Hackley will become chief executive.
David Pottruck, Schwab president and co-chief executive officer, said the acquisition will give investors new technology that has historically been available mainly to institutions.
Schwab also announced a new commission schedule, aimed at reducing trading costs for active investors. Customers with 30 or more qualifying trades per quarter will see their commissions drop $10 to $19.95. Those with 60 or more trades a quarter will pay only $14.95. Customers must also have at least $50,000 in assets with Schwab to qualify for the reductions.