Charles Schwab has $9.92 trillion in assets under management. What does your brokerage company 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. This is 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’re looking to open an account with a top brokerage firm, having a lot of assets under management or a lot of clients is a helpful sign. They show that many people trust the firm with large sums of money. Factors such as fees, investment products and ease of use also come into play.

Together, these leading brokerage firms control more than $30 trillion.

Charles Schwab and Vanguard lead the way when it comes to AUM. Currently, Charles Schwab controls $9.92 trillion, and Vanguard controls $9.30. With 51.5 million accounts, Fidelity leads the way in terms of customer count.

Here’s how some of the leading companies are faring:

Data Source: The Motley Fool Ascent Research.

Choosing the right brokerage company for you

It’s nice to know that the brokerage company has a decent amount of funds under management and a solid client base. But when you’re choosing a stock broker, the most important thing is to find a brokerage that fits your investment needs.

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

Why are you investing?

There are so many different reasons to invest and ways to do it. It’s 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, find one of the best IRA brokerages. These brokerages will likely have more IRA investment options, low fees, and retirement-focused assistance. If you are an active trader, you will have different requirements than 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 that you can’t buy the investments you’re interested in. Some firms stand out with specific products, such as margin trading or cryptocurrency. Others may offer low fees on certain funds.

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

What fees are you willing to pay?

These days, 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 into 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 and for depositing or withdrawing money. You may have to maintain a balance above a certain amount to avoid monthly maintenance fees.

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 through your phone, try different investing apps to find the one that’s most intuitive for you. Likewise, if you prefer to use a desktop computer, you will find that some brokerages have better platforms than others.

I like to have access to a lot of research, and this is certainly something that some brokerages are more successful at than others. Other people may need 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 brokerages.

Assets under management tell you a lot

There are more than 3,000 securities firms in the United States. The largest of them manage trillions of dollars and have millions of clients. This can provide a degree of confidence when choosing a brokerage company. However, this is only part of the picture.

Look for a company that will work well for you. This means 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 test different platforms before you deposit funds.