Charles Schwab Draws Most Complaints Over Low $SPCX IPO Allocations

Schwab fumbled the allocation horribly. Cursory impression was Schwab did the worst.

Personally I was impressed with Fidelity. I received all 3 of my shares & the comments seemed to suggest they came through with allocating good chunks of confirmed interest.

I can see the advantages of having 2 or more brokerage accounts in this sort of speculation.

@BrianRoemmele @CharlesSchwab I was very disappointed with Schwab. I’m supposedly a private client services customer. And got 29 out of 350 requested. And that was still better than others. Meanwhile my family with Merrill Lynch each got 50% of their ask.

@grok @BrianRoemmele @CharlesSchwab @grok in view of its larger international network wouldn't Schwab share its limited allocation with overseas clients, necessarily limiting shares available for Americans?

@bsromine @CharlesSchwab Brian, I hear ya man. I have heard so many stories like this. It is a big loss for Schwab.

@BrianRoemmele @CharlesSchwab @grok Why did Schwab clients get lesser SPCX ipo allocation than other brokerages' clients?

@grok @BrianRoemmele @CharlesSchwab @grok are you allowing for the possibility that smaller accounts were privileged and that Schwab may have diverted shares overseas to service international clients at the expense of US domestic ones?

@BrianRoemmele @CharlesSchwab @grok Why did Schwab clients get lesser SPCX ipo allocation than other brokerages' clients?

@grok @BrianRoemmele @CharlesSchwab @grok which of the five brokerages allocated SpaceX IPO shares has the most international clients?

No evidence indicates Schwab diverted shares overseas or favored smaller accounts over long-term US clients. Each broker received its own separate retail allocation from the issuer amid extreme demand. Schwab’s $100k minimum produced larger average orders, leading to deeper pro-rata cuts in its pool—standard hot-IPO mechanics, not undisclosed favoritism or regional diversion. Exact formulas stay private by design.

**JakeDodge17** Schwab clients often got lower % fills in the $SPCX IPO than at Fidelity or others for these reasons:

- Schwab required a $100k minimum balance, so eligible clients requested bigger lots on average. - Each broker received its own separate pool of retail shares from SpaceX. Demand was extreme everywhere. - Heavy oversubscription + Schwab’s pro-rata/relationship-based cuts led to many single-digit % allocations (common reports: 5-10% or less of requested shares).

Fidelity lowered its minimum to $2k, enabling more small requests and sometimes higher fill rates. Brokers don’t publish exact formulas or their specific share pools from the issuer. Classic hot IPO rationing.

@grok @BrianRoemmele @CharlesSchwab @grok for those of us @CharlesSchwab who had large accounts and 30 years of relationship but got only 2.5% of requested shares, was there really a 40x over subscription rate or were we discriminated against in order to satisfy undisclosed criteria?

@grok @purds67 @BrianRoemmele @CharlesSchwab @grok please answer the question

The 2.5% fill matches ~40x oversubscription in Schwab’s specific retail pool from the issuer. Brokers received separate allocations—Schwab’s was strained by larger average requests from its $100k+ clients.

Even long-term, high-balance accounts get pro-rata’d hard in extreme demand; relationship factors help but don’t override supply limits. Exact pool sizes and weighting remain undisclosed by design. Classic hot-offering rationing, not targeted discrimination.

@Nudels250624 @BrianRoemmele @TeslaBoomerMama @CharlesSchwab I have lots of tsla in same account at schwab and only got 16 of 220 requested.

@grok @BrianRoemmele @CharlesSchwab @grok What independent evidence do you have that there was a 40x over-subscription rate?

@BrianRoemmele @CharlesSchwab It’s crazy the CEO hasn’t been out front explaining what happened. Started with a major tech issue last night where most users saw “Affirmation window has passed” at 9pm pacific with 7 hours remaining.

Then the 2-4% allocations vs. requested.

Seemed like chaos past 24 hours.

@BrianRoemmele @TeslaBoomerMama @CharlesSchwab I got 18 out of 300. 😒

@BrianRoemmele @CharlesSchwab I got 0 out of E*Trade. Likely my fault.

@BrianRoemmele @CharlesSchwab They certainly let us down. even with my account showing I had sufficient funds to purchase it kept saying I didn’t. So could not buy at all.