Charles Schwab is testing a controlled connection between traders’ AI models and its systems, keeping authentication under the brokerage’s control and barring the model from moving client funds.
Schwab outlined the limited trial at its Thursday, Oct. 15, Fall Business Update. The initial phase lets traders connect one AI model to Schwab’s Model Context Protocol (MCP) layer.
MCP is an open protocol that links AI applications with tools and data. What an application can access depends on what the connected system makes available.
Schwab manages authentication for the connection. It does not permit the model to move money in client accounts. The brokerage also blocks unauthorized agents that try to sign in on behalf of clients.
The pilot provides access through a channel Schwab controls, while the restriction on agent sign-ins addresses attempts to enter through a client’s account. Its client assets stood at $13.33 trillion as of Sept. 30.
Schwab plans to extend the pilot to more clients and AI models in the coming months.
