Charles Schwab Q3 earnings

Shares of Charles Schwab jumped on Tuesday after the brokerage giant said its client assets reached a record high this quarter, in its first earnings report since dropping commission fees.

Schwab jumped as much as 4% after reporting total client assets reached a record of $3.77 trillion at the end of the third quarter.

Earlier this month, shares of Schwab tanked when the broker announced it would offer commission free online trading in U.S. stocks, exchange-traded funds and options. Investors worried the lost commission revenue, which fed about $90 million to $100 million in quarterly revenue, would pressure margins.

But Schwab is betting the lost fee revenue can be made up for in new assets for the firm. The company said clients brought in $56.6 billion in new assets in the third quarter. The firm added 363,000 new brokerage accounts in the quarter, bringing the total number of accounts to 12.1 million.

“We eliminated online trade commissions for stocks, ETFs, and options listed on U.S. or Canadian exchanges, a move that represents another significant investment in bringing ever greater value to our clients,” said Schwab CEO Walt Bettinger in a press release. “This action is consistent with the principles on which our company was founded, helping realize Chuck Schwab’s vision of making investing accessible to all.”

Rival brokerage firms Interactive Brokers, TD Ameritrade and E-Trade took the same step in dropping commissions this month, escalating the brokerage-fee wars.

Schwab reported third-quarter earnings that beat analysts’ expectations. The company reported earnings per share of 70 cents, compared to the 64 cents expected by Wall Street, according to Refinitiv. Revenue came in at $2.711 billion, topping expectations of $2.644 billion.