Largest Broker Dealers by Assets and Accounts

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Let's take a look at the largest broker dealers in the industry. According to our research, Charles Schwab is the largest broker dealer by assets, with over $4.7 trillion in client assets.

The company has a long history of serving individual investors and institutional clients, with a reputation for providing low-cost investment products and services.

TD Ameritrade, on the other hand, is the largest broker dealer by accounts, with over 11 million client accounts. This is a testament to the company's commitment to making investing accessible to everyone.

Fidelity Investments is another major player in the industry, with over $8.1 trillion in client assets and over 33 million client accounts.

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Largest Broker Dealers

The largest broker dealers in the US are a force to be reckoned with. Charles Schwab holds the top spot with a staggering $9.41 trillion in assets under management and 35.6 million active accounts.

Fidelity Investments and Vanguard follow closely, with $4.9 trillion and $9.3 trillion in assets under management, respectively. These firms also have a significant number of active accounts, with Fidelity boasting 37.1 million and Vanguard having over 50 million.

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Here's a breakdown of the top 4 broker dealers in the US, ranked by assets under management and active accounts:

TD Ameritrade, which will soon be part of Schwab, has over $1 trillion in assets and 11 million client accounts.

TD Ameritrade

TD Ameritrade has over $1 trillion in assets and 11 million client accounts. It's a massive player in the industry.

TD Ameritrade began as simply Ameritrade, changing its name in 2006 after acquiring TD Waterhouse USA. The company continued to grow with its acquisition of Scottrade in 2017.

TD Ameritrade has made a name for itself by focusing on service, offering 24/7 customer service, research, advanced trading tools, and a user-friendly website. This focus on service has helped it stand out from its competitors.

TD Ameritrade's growth and success have allowed it to become a major player in the industry, with the potential to affect the entire industry with its decisions.

9 Largest Firms by AUM and Active Accounts

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The largest firms in the industry are a force to be reckoned with. Charles Schwab tops the list with $9.41 trillion in assets under management and 35.6 million active accounts.

Fidelity Investments comes in second with $5.3 trillion in assets under management and 51.5 million active accounts. Vanguard is a close third with $8.6 trillion in assets under management and over 50 million active accounts.

J.P. Morgan rounds out the top four with $3.7 trillion in assets under management and 82 million active accounts. These numbers are a testament to the firms' ability to attract and retain clients.

Here's a breakdown of the top four firms by AUM and active accounts:

These firms are the crème de la crème of the industry, and their numbers are a reflection of their success.

Bank of America/Merrill Lynch

Bank of America/Merrill Lynch is a financial services giant with an impressive presence in the investment world. With assets under management totaling $1.9 trillion, it's clear that they're a major player.

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They offer a range of brokerage options, including Merrill Edge for self-directed investing and Merrill Guided Investing for professional guidance. For clients with substantial funds, they also offer Bank of America Private Bank.

Bank of America/Merrill Lynch has a significant number of active brokerage accounts, with 3.9 million clients relying on their services. This is a testament to their ability to provide a wide range of investment products and services.

Here are some key statistics about Bank of America/Merrill Lynch:

  • Assets under management: $1.9 trillion
  • Total active brokerage accounts: 3.9 million

Their acquisition of Merrill Lynch in 2009 has been a significant factor in their growth and success. Today, Merrill Lynch serves as the main brokerage option through Bank of America.

Ranking by Metrics

Charles Schwab takes the top spot with an impressive $9.41 trillion in assets under management (AUM).

Vanguard comes in second with a significant $8.6 trillion in AUM, just shy of Charles Schwab's lead.

Fidelity Investments ranks third with $5.3 trillion in AUM, a notable amount but still behind the top two.

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JP Morgan rounds out the top four with $3.7 trillion in AUM, demonstrating its size and influence in the market.

Here's a breakdown of the top four brokerages by AUM:

The number of customer accounts also varies significantly among the top brokerages, with Charles Schwab serving 35.6 million customers, followed closely by Vanguard with over 50 million.

Fees and Costs

Fees and costs can add up quickly when investing with a broker dealer. Charles Schwab has consistently been one of the cheapest brokerage firms in the U.S., with a zero commission fee for online trades of U.S.- and Canadian-listed stocks, ETFs, and options.

Schwab's operating expense ratio (OER) fees for actively managed mutual funds range from 0.21% to 1.09%. Fees for passively managed mutual funds can range from 0.02% to 0.39%. Annual portfolio management fees start at 0.80% for the Schwab Wealth Advisory account.

The firm also offers clients a worry-free, passive approach to investing through its robo-advisor service called Intelligent Portfolios, which comes with no advisory or commission fees. This service requires a minimum $5,000 investment.

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Vanguard is known for its low-fee services, offering ETFs and mutual funds with no additional fees for online transactions. Options exercises and assignments are $1 per contract for accounts with less than $1 million, then $0 for the first 25 trades and $1 for all trades after that for accounts of $1 million to up to $5 million.

Fidelity Investments offers commission-free stock, ETF, and options trades, with a standard 65-cent-per-contract fee for options trades. There are no minimums to invest in Fidelity mutual funds, and the firm doesn't charge an expense ratio fee for certain proprietary mutual funds.

Portfolio advisory service fees at Fidelity range from 0.20% to 1.50%, based on the amount invested. The firm's automated Fidelity Go service charges a 0.35% advisory fee for balances exceeding $25,000.

JP Morgan's personal account annual fees start at 0.6% for investments between $25,000 and $249,999, and lower to 0.5% for balances of $250,000 or greater. The firm also offers various advisory portfolios with fees ranging from 1.45% to 0.70%.

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Other Broker Dealers

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Other broker dealers like Stifel Financial Corp. have a strong presence in the market, with over $250 billion in assets under management. They offer a wide range of financial services to their clients.

Stifel Financial Corp. has a long history, dating back to 1890, and has grown significantly over the years. In 2019, they acquired Sterling Financial Corporation, expanding their reach and capabilities.

Stifel Financial Corp. is a full-service broker dealer, providing services such as investment banking, research, and trading. They have a large network of over 2,000 financial advisors across the United States.

Another notable broker dealer is Raymond James Financial Inc., which has a significant presence in the United States and Canada. They have over $1 trillion in client assets and offer a range of financial services.

Raymond James Financial Inc. was founded in 1962 and has since grown into one of the largest independent financial services companies in the world. They have a strong focus on providing personalized service to their clients.

A unique perspective: Countrywide Financial Corporation

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LPL Financial is another major broker dealer, with over 14,000 financial advisors across the United States and Canada. They offer a range of financial services, including investment advice, retirement planning, and wealth management.

LPL Financial was founded in 1966 and has since become one of the largest broker dealers in the United States. They have a strong reputation for providing high-quality service to their clients.

Broker Dealer Concepts

A broker is an individual who connects buyers and sellers to facilitate transactions, while a brokerage firm is a company that provides investing and other financial services.

Brokers act as market intermediaries, connecting buyers and sellers in the process of buying and selling securities. This can include stocks, bonds, shares of mutual funds or index funds, and other securities.

A brokerage firm offers accounts that are used to buy and sell these securities, making it a crucial part of the investment process.

Difference Between Broker and Firm

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A broker is an individual who connects buyers and sellers to facilitate transactions.

A brokerage firm is a company that provides investing and other financial services. This is a key distinction, as it highlights the difference between an individual broker and a larger company.

A broker is essentially a middleman, connecting buyers and sellers to make deals happen.

A brokerage firm offers accounts that are used to buy and sell stocks, bonds, shares of mutual funds or index funds, and other securities. This can include a wide range of financial products.

In essence, a broker is a single person, while a brokerage firm is a company with multiple employees and resources.

Investing with Firms

Fidelity is the biggest keeper of 401(k) retirement savings plans in the United States and is the largest provider of 403(b) plans. As of September 30th, 2019, Fidelity had 7.8 trillion in assets, 72 million accounts, and 30 million individual investors.

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Fidelity offers many ETFs and mutual funds, as well as products from third parties. Fidelity has tens of millions of additional clients beyond its brokerage clients, thanks to the mutual funds and advisory services it offers.

A discount broker is a stock broker company with reduced commission rates compared to a full-service broker. In contrast, a full-service broker may provide low or no-commission trades but also provide investment advice or perform analysis on a client’s behalf.

The biggest firms in the U.S. are Charles Schwab, Fidelity, Vanguard, and JPMorgan. These companies provide brokerage services to millions of clients.

Choosing a large brokerage firm depends on your financial goals and investment type. For example, some are better for cryptocurrencies or options and futures contracts.

Broker Dealer Comparison

Charles Schwab is the largest brokerage firm by AUM, 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.

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

The "Big 4" brokerage firms in the U.S. are Charles Schwab, Fidelity, Vanguard, and JPMorgan. These companies provide brokerage services to millions of clients.

Charles Schwab has 36.2 million active brokerage accounts, a 4% increase from 34.8 million in Q4 2023. Vanguard, on the other hand, has over 50 million active accounts, according to some reports.

Here are the top 3 brokerage firms by assets under management, along with their active accounts:

Robinhood, on the other hand, has 24.8 million active accounts, a 6% increase from 23.4 million in Q4 2023. Coinbase has 7.8 million active accounts, an 11% increase from 7 million in Q4 2023.

Key Takeaways and Resources

Charles Schwab had a whopping $9.41 trillion under management and 36.5 million active brokerage accounts.

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Vanguard's managed assets totaled $8.6 trillion, with more than 50 million active accounts.

Fidelity Investments also had a significant presence, managing $5.3 trillion and serving more than 50 million active accounts.

JP Morgan managed $3.7 trillion in assets and served 82 million consumers, including its banking clients.

Here's a quick comparison of the largest broker dealers:

Frequently Asked Questions

What brokerage do billionaires use?

Billionaires often use Charles Schwab, a brokerage that caters to high net worth individuals with over 70% of its assets from this demographic. Schwab's expertise in serving ultra-high-net-worth clients makes it a top choice for the wealthy.

Teri Little

Writer

Teri Little is a seasoned writer with a passion for delivering insightful and engaging content to readers worldwide. With a keen eye for detail and a knack for storytelling, Teri has established herself as a trusted voice in the realm of financial markets news. Her articles have been featured in various publications, offering readers a unique perspective on market trends, economic analysis, and industry insights.

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