Charles Schwab manages $9.92 trillion in assets. What does your brokerage look like?

Charles Schwab is the largest brokerage firm with nearly $10 trillion in assets under management (AUM). This puts it slightly ahead of Vanguard, which is next in line. That’s well ahead of Fidelity and JP Morgan Self-Directed Investing. Charles Schwab manages more funds than the combined GDP of Germany and Japan.

If you want to open an account with a leading brokerage firm, having a large number of assets under management or a significant number of clients are useful characteristics. They show that many people trust the firm with a lot of money. Factors such as fees, investment products and ease of use also matter.

Together, these leading brokerage firms oversee more than $30 trillion

Charles Schwab and Vanguard lead the way when it comes to AUM. Charles Schwab currently controls $9.92 trillion and Vanguard has $9.30. With 51.5 million accounts, Fidelity leads by number of customers.

Here’s what some of the leading companies look like:

Data Source: Research by The Motley Fool Ascent

Choosing the right broker for you

It is good to know that the brokerage has a decent amount of funds under management and a solid client base. But when you’re choosing a stockbroker, it’s more important to find a brokerage that fits your investment needs.

In addition to non-negotiable SIPC insurance, there are some factors to consider.

Why are you investing?

There are so many different reasons to invest and ways to do it. It is much easier to compare firms if you have a clear idea of ​​what you need and what type of investor you are.

For example, if you’re investing for retirement, look for one of the best IRA brokerages. These brokerages will likely have more IRA investment options, low fees, and retirement benefits. If you are an active trader, your requirements will differ from those of a buy-and-hold investor.

What types of assets do you want to buy?

Think about the types of funds or assets you want to buy. There’s no point in opening an account only to find you can’t buy the investments you’re interested in. Some firms stand out with certain products, such as margin trading or cryptocurrency. Others may offer low commissions for certain funds.

If you like mutual funds, JP Morgan Self-Directed Investing stands out because it doesn’t charge mutual fund commissions. It also pays out a generous bonus for new customers right now. Click here to learn more about what this low commission brokerage has to offer and open an account.

What fees are you willing to pay?

Today, many brokerages offer low-cost (or free) trading. But there are always some commissions somewhere – after all, stockbrokers have to make money. And fees can eat away at your investment portfolio, especially if you don’t know what you’ll be charged for.

Common fees to look out for include fees for trading less common asset types or for depositing or withdrawing money. You may need to maintain a balance above a certain amount to avoid monthly service charges.

You may decide that you are comfortable paying for certain services. For example, you might prefer to pay a little more for a firm that has branches where you can talk to someone face-to-face.

What investment features do you need?

If you prefer to do things over the phone, try different investment apps to find the one that makes the most sense for you. Similarly, if you like to use a desktop, you will find that some brokerages have more user-friendly platforms than others.

I like to have access to a lot of research and this is definitely something that some brokerages excel at more than others. Other people may need a lot of charting tools or advanced order types. The trick is to understand which features are most important to you so that you can choose the right brokerages.

Assets under management speak volumes

There are more than 3,000 securities firms in the United States. The largest of them manage trillions of dollars and have millions of customers. This can give you some confidence when you choose a brokerage. However, this is only part of the picture.

Look for a firm that will work well for you. This means that the brokerage has the right accounts for you, trades the assets you want to buy, and offers platforms you find easy to use. Don’t be afraid to try different platforms before investing.