Schwab, Vanguard, Fidelity Among Trading Platforms With Technical Problems As Market Meltdown Intensifies

Multiple online brokerage platforms experienced problems Monday morning as markets continue to melt.

What To Know: Online brokerages including Charles Schwab Corp (NYSE:SCHW), Vanguard and Fidelity National Financial Inc (NYSE:FNF) were not working properly for thousands of users, according to data from Downdetector.com.

The website, which tracks outages, shows that Schwab, Vanguard and Fidelity were the most impacted, with thousands of users reporting issues. There were also some users reporting problems with trading platforms E-Trade and Interactive Brokers.

Schwab began experiencing problems shortly before the market open Monday, with the outage reports tapering off around 10:22 a.m. ET. The Downdetector reports for the other brokerages follow a similar trajectory.

Vanguard posted on X: “We recognize some investors are experiencing delays when logging in to their accounts. We are working diligently to restore functionality and apologize for any inconvenience.”

Fidelity told Bloomberg that some customers experienced “intermittent issues” earlier Monday and they are resolved.

"We are aware some customers experienced intermittent issues earlier today," a Fidelity spokesperson said in an emailed statement. "This is now resolved."

Benzinga contacted Schwab, Vanguard, Fidelity, E-Trade and Interactive Brokers for comment on the reported outages.

Schwab, which appeared to be dealing with the most widespread outage, posted on its website that some clients may have difficulty logging in to Schwab platforms “due to a technical issue.”

The technical difficulties come with markets facing heavy selling pressure as traders fear a hard landing could be on the horizon after the Federal Reserve left interest rates unchanged last week against a weakening labor market, which has sparked recession fears.

Check This Out: Market Turmoil: July Jobs Report, Geopolitical Risks Spark Stock Sell-Off As Traders Flee To Treasuries, Yen, Gold

Downdetector uses reports from multiple sources including end users to track digital outages.

Users were unable to login to their accounts, @KobeissiLetter said in a post on X: “Once again, Schwab’s platforms have crashed during a period of high volume.”

X user @idan_bg made a post suggesting the issues were not by coincidence: “This is a crime against retail investors because the hedge funds want to protect themselves!”

Another X user, @finleyriver1, said this is the fourth time that Schwab has been down in the last three months, adding that it was an “embarrassing” look for the company.

Broader market indexes are tumbling Monday morning while volatility spikes. The S&P 500 was down approximately 2.85% at the time of publication, while the Nasdaq Composite was down nearly 4% and the Dow Jones Industrial Average was down about 2.8%. The declines come after U.S. stocks registered their worst session since 2022 last week.

The SPDR S&P 500 (NYSE:SPY), which tracks performance of the S&P 500 Index, was down 2.98% at $517.08 at the time of publication, according to Benzinga Pro.

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