Barclays Bank acquires UK business of Charles Schwab Europe

Barclays PLC today, 31 January 2003, announces that it has acquired Charles Schwab Europe, CSE. The acquisition brings together Barclays Stockbrokers, the UKs largest retail stockbroker, with CSE, an award winning execution-only broker, to create the leading market player in UK retail broking. The unaudited net tangible assets of CSE at the end of December 2002 amounted to 17m.

The CSE business has a client base of more than 150,000 accounts, and an award winning website. The business will be integrated with Barclays Stockbrokers, part of Barclays Private Clients, a process expected to take between six and nine months. The combined business will have over 500,000 execution-only client accounts.

During integration the services provided by CSE and Barclays Stockbrokers will remain largely unchanged in the interests of maximising service continuity for customers. Post integration the objective is to leverage the complementary strengths of the two businesses, bringing together Barclays Stockbrokers independent research and overseas dealing capabilities with CSEs stockbroker service, which is mainly distributed through the on-line channel.

Barclays Stockbrokers proposes to consolidate the two operations at its sites in Glasgow and Peterborough. Once integrated, it is expected that the CSE sites in Birmingham and Milton Keynes will close. It is anticipated that closure will take place during the second half of 2003.

Commenting, Bob Hunter, Chief Executive, Barclays Private Clients, said. Todays acquisition of Charles Schwab Europe furthers our strategic ambition of delivering world-class investment at great value. By combining the UKs largest stockbroker with the player offering the best on-line service in the country we will expand the breadth and quality of investment services that we can offer the customers of both organisations. At the same time we expect to achieve significant efficiency gains.

William Atwell, Executive Vice President, Schwab International, said. Were proud of what we have achieved since first establishing our presence in the United Kingdom in 1992. We are one of the UKs leading execution-only brokers and have won numerous accolades for our website and our customer service.

But we cannot ignore the fact that we are operating in a very difficult market. As we looked to the future it became clear that we could not achieve our market share goals in the UK without an acquisition or a significant investment in the expansion of our pound sterling services to a fuller offering integrated with banking. Ultimately we reached the difficult conclusion that such an investment did not make sense for our firm at this time. However, in line with our corporate strategy, we will continue seeking to aggressively grow our US dollar business in the UK and elsewhere.

In Barclays I am confident we have found the best new home for our pound sterling customers: a company that shares our passion for customer service and that will provide investors with the rich array of banking and investing services they deserve. Well work closely with Barclays Stockbrokers to ensure the transition is as seamless as possible for customers.

END

I have just had a letter informing me that my broker Barclays is going to merge with Charles Schwab. My first reaction was 'great' better service more products etc. But then I dug a little deeper and visited Schwabs web site.

http://www.schwab-worldwide.com/europe/

I have found that they charge nearly 10 more per deal than BSL. They have a yearly charge and a tiered pricing scheme rather than a flat rate. I deal a lot but do not like being pressured into dealing just to get a cheaper deal.

Their dealing interface is not as good as BSL's current setup.

Charles Schwab seem to be more interested in selling managed investment products rather than a dealing service. I hope than it is a beneficial merger and that some aspects of the Charles Schwab service will change also.

I use Barclays not because they are the cheapest, but because of their service which is excellent. Although the second the service declines or I have to pay any more than I am currently I will be seeking alternative providers.

Any thoughts from current Barclays Stockbroker clients or Charles Schwab clients?

I was a little P OFF with the change initially, but only buy and sell shares. I don't use CFD or T+ trades. Bs. seems to have setled down, though unless the stop loss mechanism comes into force I will change more of my dealing to Comdirect. I think I prefer Comdirect and its research features are VG.

mbbcat, are you spreadbetting? I only deal in shares and any problem on line has been sorted on the phone. Really pleased with the back office. The stop loss facility appeared this week. I have never used it, don't know how. I haven't spent much time on research since at first it was not as good as Schwab so I looked elsewhere. I'm not interested in funds but perhaps it's worth spendng some time researching their research. I'm really glad I transferred to Barclays, feel safe with them.

I have also not had any big problems with Barclays Stockbrokers. Just a few niggles which got quickly sorted out. The website used to be aweful, but following the merger is very good. I have also found the service to be good too.
I trade about once a week thru them, usually on-line, occasionally by phone for small shares with a a low NMS. But I don't use their CFD service or limit orders, so maybe they have a problem in those areas.

this is dealing in shares - dread to think what would happen if there was margin invoolved as well!! :-(

ok there were occsional (& not so occasional) huicups with Schawb but were easily sorted normally - this lot seem to be competely hopeless & inept @ least in my experience.

Have tried complaining to the exchange & fsa but no joy so far

I'm really sorry to hear this mbbcat. Whenever I have a problem they are very helpful, do you ring Signature Services - 0845 310 5011? When buying or selling shares on line there is sufficient detail to decide whether or not I'm getting a good deal and I can go ahead or cancel. I always use a limit.

Angi.

You excited me with your post saying that Stop losses procedure had started on Barclays. Unfortunately, this feature is at the moment it is limited to the select few while testing it out. But its coming.

If you are interested in stop losses, have a look at Chapter 5, Managing Trades of Technical Analyses for Dummies by Barbara Rockefeller Published by Wiley Publishing. Inc..

The format of the book is helpful and the basis and techniques described are IMHO sensible.

Sorry to keep plugging this book unfortunately I have no financial interest in other than having purchased it.

One of the things I dont like about Barclays is their charges for ISA and PEPS I think as the majority of the processes are computerise now, they could be a little cheaper.

Exit or transfer fees are high.

Mind I would probably bleat if they paid me for using their accounts.

I also think when there was a cockup of some sort (Usually my fault) CSchwab seemed a little more generous.

Fred1new,

Thanks for the tip. When I transferred from Schwab Barclays agreed to an acceptable charge for ISAs and PEPs. I know they no longer need to reclaim tax paid on divis thanks to Gordon Brown but they still look after the portfolios and also pay interest on cash in the account. It might not be much but it's useful to keep some cash.

I know what you mean about Schwab "being a little more generous", and they were very charming whilst helping to right your mistakes but I won't forgive them for throwing in the towel.

It depends on what the towel was covering. :-)

Ref : Barclays Stockbrokers > Coming soon Advanced Stop Orders, Extended settlement T+10, and Read Time Level 2, also with Price Improver 95% of the time they beat LSE displayed price, plus if you trade more than 10 times per month all trade are 7.50, so with price improver you are 'at times trading for free' just the .5% stamp duty to consider.....
What a cracking service....
Nite t nite all..
Mike....

Sorry a 'typo' it's late! I ment 'Real Time Level 2'

I think it is >10 deals a quarter then 7.50. You can also almalgamate the trades from various accounts.

Sorry you are correct 10 trades per 1/4..

Been getting excellent service from Barclays they are getting good prices and dealing charges of only 7.50 is great, i have the stop loss system on my account but so far its not been triggered !

Their CFD service doesnt seem as good as others though so i am not signed up for that.

Level 2 might suggest that they are going to bring out a trading platform like etrade and TDW which would be cool.

Nickb

How did you manage to arrange a stop loss feature on your account.

If like me by trading to often!

fred i think they are rolling the stop loss feature out slowly to clients.

Like watching paint dry trying to trade with Barclays this am Verrrrry SLOW same at times Fri :o(((

Must be just me - been trying since MAY to get payments FROM the account ( yes for more than a month!) - no way this will work - stuffed up instructions, un-returned calls, payments that go out & mysteriously come back etc & if I dare to complain its another 2 hrs of music to coomit suicide to as they put me in call centre hell yet again & then its a feeble excuse - its the system stupid! - or some such we will call you back)NOT!) etc

& they have really got me - as I can't get cash out so I can't even fire them!

On the verge of suing them but they have bottemless pockets - so what to do?

seriously think they can not be trusted with anything

imo nag dyor etc

chartist2004

re post 21 may I ask where you saw that?

tia

mbbcat - I'll reply Tues, just got in after 14.5 hrs work so I bu****ed!
See ya later....