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 on the list. This is far 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 large brokerage firm, having a lot of assets under management or a good number of clients are useful signs. They show that many people are entrusting the company with large sums of money. Factors such as fees, investment products and usability are also important.

Together, these large brokerage firms control over $30 trillion.

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

Here’s how some of the biggest companies stack up:

Data Source: Research from The Motley Fool Ascent

Choosing the Right Brokerage for You

It is reassuring to know that a brokerage has a decent amount of funds under management and a solid customer base. But when choosing a stock broker, what matters most is finding a brokerage that meets your investment needs.

In addition to SIPC insurance, which is non-negotiable, here 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 clear idea of ​​what you need and the type of investor you are.

For example, if you’re investing for retirement, research one of the best brokerages for IRAs. These brokerages will likely have more IRA investment options, low fees, and specific retirement assistance. If you are an active trader, your requirements will be different 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 opening an account only to find out you can’t buy the investments you’re interested in. Some companies stand out for specific products, like margin trading or crypto. Others might 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 commissions. It is also currently paying a generous bonus to 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?

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

Common fees to watch out for include fees related to trading less common types of assets or depositing or withdrawing money. You may need to keep your balance above a certain amount to avoid monthly maintenance fees.

You might decide that you are comfortable paying for certain services. For example, you might prefer to pay a little more for a company that has branches where you can speak 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 works most intuitively for you. Likewise, if you like to use a desktop computer, you’ll find that some brokerages have more usable platforms than others.

I like being able to access lots of research, and this is definitely an area that some brokerages excel at more than others. Other people may want lots of graphical tools or advanced command types. The trick is to understand which features are most important to you so you can shortlist the right brokerages.

Assets under management don’t tell you much

There are more than 3,000 title companies in the United States. The largest of them manage billions of dollars and have millions of customers. This can provide a certain level of confidence when choosing a brokerage. However, this is only part of the picture.

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