Charles Schwab is the largest brokerage firm with approximately $10 trillion in assets under management (AUM). This puts it slightly ahead of the next Vanguard. Fidelity and JP Morgan are well ahead of 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 top brokerage, having a large number of assets under management or a large number of clients are helpful signs. They show that many people trust the firm with large amounts of money. Factors such as fees, investment products and availability are also important.

Together, these leading brokerage firms control $30 trillion

Charles Schwab and Vanguard are leading when it comes to AUM. Currently, Charles Schwab controls $9.92 trillion, while Vanguard manages $9.30. With 51.5 million accounts, Fidelity leads in terms of number of customers.

Here is a ranking of some of the best companies:

Data source: Motley Fool Ascent’s research

Choosing the right broker for you

It’s reassuring to know that a brokerage firm has a reasonable amount of funds under management and a solid client base. But what’s more important when you choose a stock broker is to find one that suits your investment needs.

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

Why are you investing?

There are many different reasons to invest and ways to do it. It’s much easier to compare companies if you have a solid idea of ​​what you need and what type of investor you are.

For example, if you’re investing for your retirement, look for one of the best brokerages for IRAs. These brokerages will likely have more IRA investment options, lower fees, and special retirement assistance. If you are an active investor, you will have different requirements than a buy-and-hold investor.

What kind of assets do you want to buy?

Consider the types of funds or assets you want to buy. There’s no point in opening an account only to discover that you can’t buy the investments you’re interested in. Some companies stand out with certain products, such as margin trading or crypto. Others may offer low fees for certain funds.

If you like mutual funds, JP Morgan Self-Directed Investing stands out because it does not charge commissions on mutual funds. It also currently pays out a generous bonus for new customers. Click here to learn more about what this low-fee brokerage has to offer and open an account.

What fees are you willing to pay?

Many brokerages offer low-cost (or no-fee) trading these days. But there are always some fees somewhere; After all, stock brokers need to make money. And fees can deplete your investment portfolio; especially if you don’t know what you’ll be charged for.

Common fees to be aware of include fees for trading less common asset types or deposit or withdrawal fees. You may need to keep your balance above a certain amount to avoid monthly maintenance fees.

You may decide that you are comfortable paying for certain services. For example, you may choose to pay a little more for a company that has branches where you can talk face to face.

What investment features do you need?

If you prefer to do things through your phone, try different trading apps to find the one that’s most intuitive for you. Similarly, if you like to use a desktop computer, you will find that some brokers have more useful platforms than others.

I love having access to a wealth of research, and this is something some brokers definitely excel at more than others. Other people may want multiple charting tools or advanced order types. The trick is to understand which features are most important to you so you can shortlist the right brokers.

Managed assets can only tell you so much

There are over 3,000 securities firms in the United States. The largest ones manage trillions of dollars and have millions of customers. This can give a certain degree of confidence when choosing a brokerage. But this is only part of the picture.

Look for a company that will work well for you. This means a brokerage firm that 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 money.