Charles Schwab, the world's top discount and Web broker, said yesterday it would buy 147-year-old money management firm US Trust for $2.7 billion (€2.63 million) in stock to create a full-service brokerage.

The move will enable San Francisco-based Schwab to offer high-end investment advice and trust services after a 25-year history as a discounter. Schwab recently faced increasing competition as Wall Street firms Merrill Lynch and Morgan Stanley Dean Witter introduced discounted Internet trading last year.