Biggest Brokerage Firms in the US

The US is home to a vast array of brokerage firms, each with its own unique strengths and offerings. Fidelity Investments, for example, is one of the largest online brokerages in the country, with over 27 million customer accounts.

Fidelity's size and scale are a testament to its long history of providing reliable and affordable investment services. Founded in 1946, Fidelity has grown to become one of the most trusted names in the industry.

Charles Schwab, another industry giant, has been in business since 1971 and now boasts over 12 million client accounts. Schwab's commitment to low fees and exceptional customer service has made it a favorite among individual investors.

TD Ameritrade, meanwhile, has built a reputation for its innovative trading platforms and extensive research resources. With over 11 million client accounts, TD Ameritrade is a force to be reckoned with in the world of brokerage firms.

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To choose the best online broker, you should start by considering the key factors that our team focuses on when evaluating brokerage accounts. These factors include fees, account minimums, and promotional offers.

Our team at NerdWallet thoroughly researches and tests each broker's stock trading capabilities through real accounts, ensuring we can report on every aspect of the user experience. We also collect data directly from providers through detailed questionnaires and conduct first-hand testing and observation.

NerdWallet's comprehensive review process evaluates and rates the largest U.S. brokerage firms by assets under management, along with emerging industry players. We score each online broker against a set of criteria that factors in both the features offered and the actual user experience of using those features.

Here are some key factors to consider when choosing an online broker:

Our selection process is thorough and rigorous, involving months of research and hands-on testing. We have a team of full-time investing writers and editors who extensively test each broker's stock trading capabilities through real accounts they open and fund to place trades.

We collect data directly from providers through detailed questionnaires and conduct first-hand testing and observation through provider demonstrations. This helps us get a comprehensive understanding of each broker's features and user experience.

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We score each online broker against a set of criteria that factors in both the features offered and the actual user experience of using those features. This includes how easy it is to sign up for and fund a new account.

Our proprietary assessment process evaluates over 20 factors, including online broker fees, tools, research options, customer service, educational content, and more. We also consider the experience of actually using the features offered by each broker.

Here's a breakdown of the key factors we consider when evaluating online brokers:

Our comprehensive review process aims to provide an independent assessment of providers to help you make informed decisions about which broker will best meet your needs. We strive to provide accurate and unbiased information to help you choose the right online broker for you.

SoFi Active Investing is a solid option for investors who already use other SoFi products, such as its bank or loan accounts. This is because the broker offers a few unique features that are rare in the industry.

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SoFi's stock/ETF trades cost $0, making it an attractive choice for beginner stock traders. Options trades are also free. The broker's platform is browser-based and available as a mobile app.

One of the standout features of SoFi Active Investing is its IPO access, which can be a game-changer for investors who want to get in on the ground floor of new companies. Additionally, users get complimentary access to financial advisors and can see the investment holdings of well-known traders.

SoFi's research and data offerings may fall short of the competition, but its low fees on uninvested cash make up for it – it pays only 0.01%. This means you can keep more of your money in your account.

Here's a quick rundown of SoFi Active Investing's key features:

Reliability is a top concern when selecting a broker. Some brokers have been around for decades, while others are relatively new to the scene.

New brokers may be unproven in various stock market scenarios. If you're concerned about this, consider investing with a large institution.

Regulated by the Securities and Exchange Commission and members of a self-regulatory body, such as the Financial Industry Regulatory Authority, can give you peace of mind.

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A firm is essentially a business that offers financial services, such as buying and selling stocks, bonds, and other securities.

In this case, a brokerage firm is a type of firm that specializes in buying and selling securities, including stocks, bonds, shares of mutual funds or index funds, and other securities.

To understand what a firm does, let's break it down further. A brokerage firm offers accounts that are used to buy and sell securities, which can include stocks, bonds, and more.

A brokerage firm's primary function is to facilitate the buying and selling of securities on behalf of its clients, making it an essential part of the financial industry.

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When selecting a brokerage firm, it's essential to consider the size and scale of the company. Charles Schwab is the largest brokerage firm by assets under management (AUM), with $10.31 trillion in assets as of the end of November 2024.

This massive size can be a significant factor in choosing a brokerage firm, especially for investors with large portfolios. Charles Schwab's size and scale can provide a sense of stability and security.

However, it's worth noting that Vanguard is the only other brokerage firm with AUM close to Charles Schwab's. Vanguard managed $10.10 trillion in assets at the end of 2024.

Here are the top 5 largest brokerage firms by AUM, based on the data from the end of 2024:

The size of a brokerage firm can impact the services and tools available to investors. Larger firms like Charles Schwab and Vanguard often have more resources and a wider range of investment options.

To start trading with an online broker, you'll need to open a brokerage account, which typically takes just a few days.

After you've opened the account, you'll need to initiate a deposit or fund transfer, which can take a few days to process, though certain circumstances may extend the timeframe.

Several of the brokerage firms on our list will allow you to begin trading before your deposit clears.

This is a huge plus, as it lets you start trading sooner rather than later.

Here's a breakdown of the estimated onboarding time for some of the top brokerage firms:

Charles Schwab is the largest brokerage firm by assets under management, managing $10.31 trillion in assets as of the end of November 2024. Vanguard is the only other brokerage with AUM close to Charles Schwab's.

Fidelity boasts the most active brokerage accounts among major firms for which data is available, with 51.5 million. This is a significant increase from 38.7 million in Q4 2023, representing a 33% growth.

Here's a list of the top 4 brokerage firms by assets under management:

Charles Schwab, the largest brokerage firm in the US, has a staggering $9.41 trillion in assets under management. Vanguard comes in second with $8.6 trillion, and Fidelity Investments ranks third with $5.3 trillion.

The top brokerage firms in the US are also measured by the number of customer accounts they have. According to the latest data, Charles Schwab has 35.6 million customer accounts, followed by Vanguard with over 50 million, and Fidelity Investments with 51.5 million.

Here's a breakdown of the top brokerage firms in the US, ranked by assets under management and number of customer accounts:

JP Morgan, ranking fourth, has a significant presence with $3.7 trillion in assets under management and 82 million customer accounts.

Fidelity is one of the largest and most well-established brokerages, with assets under management of $5.8 trillion and 51.5 million active brokerage accounts. It has a wide selection of mutual funds and exchange-traded funds (ETFs), as well as access to international markets and fractional share investing.

Fidelity offers commission-free stock, ETF, and options trades, with a standard 65-cent-per-contract fee for options trades. There are no minimums to open a retail brokerage account, including individual retirement accounts (IRAs).

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Fidelity has been around since 1946, when it was founded by Edward C. Johnson II as an investment advisor to the Fidelity Fund. Today, it operates as a major brokerage firm with investor centers in over 140 locations throughout the US.

Here are some key facts about Fidelity:

Fidelity's customer support is available 24/7, making it a great option for those who need help outside of traditional business hours. Its high interest on uninvested cash is also a perk for those who want to earn more on their idle funds.

Charles Schwab is one of the largest brokerage firms in the U.S. with $9.41 trillion in assets under management. It has 35.6 million active brokerage accounts.

Charles Schwab was founded in 1971 and is based in San Francisco. It operates Schwab Bank, one of the largest banks in the U.S., which allows its brokerage clients to link their trading accounts with a checking account.

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The firm offers a variety of investment products, including stocks, mutual funds, exchange-traded funds (ETFs), money market funds, fixed-income products, options, futures, insurance, and annuities. Clients can also invest in Schwab's proprietary products and other third-party investments.

Charles Schwab has a strong reputation for quality research, 24/7 customer support, and a large trading platform selection. It offers four free trading platforms and three high-quality mobile apps that cater to different types of investors.

Here are some key features of Charles Schwab:

Charles Schwab's low interest rate on uninvested cash in your portfolio is one of the broker's only drawbacks, paying only 0.01% interest on uninvested cash.

In October 2020, Charles Schwab acquired TD Ameritrade in a deal worth $22 billion, forming one of the biggest online brokerages with nearly $6 trillion in client assets from 28 million brokerage accounts.

Charles Schwab is the largest brokerage firm by AUM, managing $10.31 trillion in assets as of the end of November 2024.

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Robinhood is a popular online brokerage firm that has disrupted the industry with its easy-to-use app-based platform, offering zero-commission trades on stocks, ETFs, and options.

Robinhood's customer support has improved over the years, but accessing phone support still requires requesting a call back through the app.

With a total of 24.8 million active brokerage accounts and $200 billion in total customer assets, Robinhood has made a significant impact on the investment industry since its founding in 2013.

One of the key features of Robinhood is its high interest on uninvested cash, which is a major draw for traders looking to earn more on their idle funds.

Here's a breakdown of Robinhood's trading fees:

Overall, Robinhood is a great option for high-interest on uninvested cash, trading via a streamlined mobile app, and options trading.

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Firstrade is a great option for traders who want to keep costs low. They charge no commission on stock and ETF trades, which is a significant advantage for frequent traders.

One of the standout features of Firstrade is their options trading platform. They offer a contract-free options trading experience, which is a rare find among brokers. This means you can trade options without incurring any additional fees.

Firstrade's Options Wizard is a valuable tool for traders who want to analyze strategies and potential gains and losses. It's a user-friendly feature that can help you make informed decisions.

If you're an international investor, Firstrade is a good choice. They accept clients from dozens of countries, making it easy to trade across borders.

Here are some key details about Firstrade's fees and features:

Keep in mind that Firstrade pays low interest on uninvested cash, so you may want to consider other options for your idle funds.

Online brokerages often offer promotions to attract new customers, such as a cash bonus on certain deposit amounts.

These promotions can be a deciding factor when choosing between two options, but it's essential to remember that a high commission over time can easily erase any initial bonus or savings.

You shouldn't choose a broker solely based on its promotional offer, but it can be a consideration if you're stuck between two options.

Online brokerages frequently change their promotions, so it's a good idea to regularly check for the best deals.

A cash bonus can be a nice perk, but it's not the only factor to consider when choosing a brokerage.

Bank of America/Merrill Lynch offers a wide range of financial services, including banking, credit cards, loans, and investment products. With assets under management of $1.9 trillion, they're one of the largest financial institutions in the world.

They acquired Merrill Lynch in 2009, and Merrill Lynch serves as the main brokerage option through Bank of America. Merrill Edge is a self-directed investing option, while Merrill Guided Investing provides professional guidance for clients.

Bank of America has a total of 3.9 million active brokerage accounts. For clients with substantial funds ($10 million or more), they offer Bank of America Private Bank, a premium service with personalized investment advice and wealth management.

Whether you're a seasoned investor or just starting out, Bank of America/Merrill Lynch has a brokerage option that suits your needs.

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When comparing the biggest brokerage firms, it's essential to consider several key factors.

To narrow down your options, start by looking at the trading costs, which can be a major consideration for active and high-volume traders. Many brokers offer commission-free trades of stocks and ETFs, making it easier to save money.

Other factors, such as access to a range of investments and the quality of the research, may be more valuable than saving a few bucks when purchasing shares. Consider what matters most to you in a brokerage firm.

Execution quality can be a crucial factor for active traders, especially those who trade large quantities of shares frequently.

Most casual stock traders won't notice differences in execution quality between brokers, as they tend to be relatively minor.

For our reviews, we look at each broker's self-reported execution quality, which is defined as the percent of a broker's orders that are executed at or better than the National Best Bid and Offer.

This metric is particularly important for active traders, as it can significantly impact their bottom line.

If you're new to investing, look for a brokerage that offers free educational resources, such as live webinars, thorough how-to guides, video tutorials, glossaries and more.

Having access to these resources can be a huge help in getting started with investing. Some brokers even offer on-call customer support teams, live chat functions, or clear and in-depth instructions on how to use investment products responsibly.

Free educational resources are a must-have for beginners. They can help you understand the basics of investing and make informed decisions.

Fractional shares are another great feature to look for, especially if you don't have much money to invest. They allow you to purchase stock or ETFs by the dollar amount, rather than by the number of shares.

Active traders may want a brokerage that offers highly customizable downloadable platforms with in-depth analysis tools. Some brokers even offer access to additional research and data for an extra cost, but only if you need it.

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A full-service broker offers a wide array of services and products, including investing and tax advice and regular portfolio updates.

Traditional full-service brokers can charge substantial fees and transaction costs that can erode long-term investment gains. They're like having a personal financial advisor, but at a higher cost.

If you have more money than time, a full-service broker may be for you. This is because they can provide a high level of service, including regular portfolio updates and investing advice.

None of the brokers on our list are full-service brokers; they are all discount online brokerage firms. They offer a more self-directed approach to investing, which can be a good option for those who are comfortable making their own investment decisions.

For most investors, it can pay to simply open a brokerage account at an online broker. These brokers allow you to buy stocks yourself through their websites or trading platforms, often with no fee or commission.

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