The concept of investing for future gains has been around since the beginning of times, but it has become even more crucial now due to the unstable economic and financial situation of the world today. Among other forms of investment-like savings, investing in stocks, ETFs, REITs and funds through brokerage firms for future quality of living is a smart way to stay above the tides of this ever-changing economic era.
However, it isn’t just enough to invest in any stock brokerage in the U.S. You should only invest with brokerage firms that have lowered risks, give better rates, able to provide minimal commissions, have reliable software and app, and provide the most holistic customer services. Only the best of the best brokerage firms, typically the largest ones, can offer you these features, at least in our philosophy. So, let’s get started. Below are the top 10 largest investing brokerages in the USA, which also qualify as our top 10 best stock brokers.
Why Invest your money through brokerages?
The most obvious benefit of investing in the stock market as a whole, whether through stock brokerage firms, robo-advisors, or other form of investing – is that you will always be financially secured, in the long term.
Investing money in the stock market through discount brokerage firms specifically makes sure that you are paying minimal fees and able to trade actively without slashing into your long-term profits. Choosing the top 10 largest stock brokerages ensures that your money is safe and secured while doing so.
Largest (and Best) Brokerage Firms in the USA
The largest broker firms usually have the best means to offer you the best of services compared to the small ones with few clients and minute capital. This is why the largest brokerage firms should be your go-to for stock investments.
Here are top 10 of the largest and arguably the best brokerage firms in the USA:
If you want to work with a trustworthy, dependable financial institution, then consider getting a membership at TD Ameritrade. TD Ameritrade was founded as Ameritrade in 1971 before it acquired its competitor, TD Waterhouse from Toronto-Dominion Bank, in 2006. The companies merged and then became renamed as TD Ameritrade, with Toronto-Dominion Bank keeping about 40 percent minority stock as ownership.
In October 2020, TD Ameritrade was acquired by Charles Schwab in a $22-billion stock deal that gave Toronto-Dominion Bank (TD Bank) 13 percent minority stock ownership in Charles Schwab. As of early 2020, TD Ameritrade had more than 12 million customer accounts and client assets of about $1.2 trillion. In fiscal 2020’s second quarter, the company executed an average of 2.1 million daily average revenue trades per day. In fiscal 2018, the company derived 33.3% of its revenues from fees, commissions, rates, and charges. 28.5% of its revenues came from its bank deposit account program; 25.5% of revenues from interest, 9.7% from investment product fees while the remaining 3% came from other sources.
Many different investment choices are available to you when you become a member of this brokerage firm. Besides, TD Ameritrade provides commission-free trade in common stock, ETFs, options, and money market securities online through their website. This way, you won’t need to worry about incurring additional expenses when it comes to buying and selling securities. It is probably these extra benefit features that draw millions of clients to them from all over the world.
For more information, read our TD Ameritrade Review.
Fidelity Investment Inc. was founded as Fidelity Management & Research (FMR) by Edward C. Johnson II in 1946. The company continued to evolve and expand until it started offering 401(k) products in 1982 and started offering computerized stock trading in 1984. In 2011, Fidelity changed its old name from Fidelity International to Fidelity Worldwide Investment, what it is now known as today.
Fidelity Investments has investor centers in over 140 locations throughout the US. As of Q2 2019, Fidelity had $8.3 trillion assets under administration and $3.3 trillion total discretionary assets with over 75 million customer accounts. With no minimums and no expense ratio, Fidelity is one of the best brokers available.
With its online presence, Fidelity offers its clients access to their portfolios through their mobile phones. A major drawcard for this brokerage firm is its high percentage of client retention and satisfaction. One reason why Fidelity has a high customer satisfaction rating is because it keeps its clients informed and up to date with the market. When it comes to finding the best brokerage firm in the USA, Fidelity is definitely one of the top picks.
Charles Schwab has been a leader in the investment banking industry for several decades. Founded in 1973 by Charles B. Schwab, the company offers an extensive range of investment products and services. Among the most important investments offered by the company is its successful discount brokerage business. As a low-priced leader offering low-cost stock transactions, Charles Schwab has earned a reputation as a great source of solid investment advice.
As of Q2 2019, it had $3.3 trillion in client assets, making it is the third-largest asset manager in the world, behind BlackRock and Vanguard. Of course, it should be more now since it has acquired TD Ameritrade. Charles Swab currently has 345 branches, primarily in the United States and the United Kingdom.
With millions of client accounts and a strong reputation, the company has earned positive feedback from both its clients and its investors. With the support of its dedicated expert stockbrokers, customers can earn profitable returns every time. The company maintains a strong reputation in the investment banking industry for its low-fee stock trading and research services.
For more information, read our Charles Schwab Review.
Interactive Brokers LLC (IB) is an American multinational brokerage firm. Interactive Brokers is the largest electronic brokerage and trading firm in the US, with it executing about 1,746,000 trades per day. The company brokers stocks, options, futures, EFPs, futures options, forex, bonds, and funds. Interactive Brokers serves 720 thousand client brokerage accounts, with $170.1 billion in customer equity. The group has $75 million intangible assets, including $24 million in computer equipment.
Between 1993 and 1994, the corporate brokerage group called Interactive Brokers Group was created, and its subsidiary, Interactive Brokers LLC, was formed to control its electronic brokerage. But before that, the initial organization was first created as a market maker in 1977 under the name TP & Co., and later renamed Timber Hill Inc. in 1982.
Interactive Brokerage provides several useful tools for making trade decisions and analyzing market data. The site provides a great forum where you can interact with other traders and get advice on how to trade. There are even “real” trades and trends available so you can be a pro trader as soon as possible. Interactive Brokers also provides customer service that will respond to any questions that you may have and help you get started in no time.
For more information, read our Interactive Brokerage Review. Or maybe a Interactive Brokers vs TD Ameritrade Comparison Review.
With about $6.2 trillion in global assets under management as of January 2020, Vanguard is one of the top brokerage firms in the United States. They also have a very large and diversified investment portfolio. With about $6.2 trillion in global assets under management, as of January 31, 2020. Vanguard was founded by John C. Bogle in 1975 as a new fund division at Wellington Management Company.
If you are looking for high-quality, low cost, automated, online managed investment programs, then you should check out Vanguard. They also offer a stellar list of low-cost, high quality, ETFs, and mutual funds from various asset categories, including stock, bond, currency, commodity, and real estate.
Vanguard offers investor education programs through e-books, audio, video, and a comprehensive website. In addition to their investor education programs, Vanguard offers a wide range of tools that help investors and managers track their investments and manage their portfolios effectively. Vanguard also provides technical assistance through phone, chat, and e-mails. By utilizing Vanguard products, your investing education should become easier and more profitable over time.
For more information, read our Vanguard Review. For a comparison review, check out this articles:
- Vanguard vs Charles Schwab Comparison Review
- Vanguard vs Fidelity Comparison Review
- Vanguard vs TD Ameritrade Comparison Review
Robinhood is perhaps the youngest in our top 10 brokerage firm list, but it is definitely not insignificant. With 13m reported users and a planned 2021 IPO (which may be delayed due to the public backlash when Robinhood stopped buying orders for GameStop), it is definitely a familiar name.
The brokerage has over 40m visitors to its website monthly (estimated), is very popular in social media, has massive search volumes in google of people looking for it, and was awarded as the most innovative company by Fast Company in 2015.
The firm employees more than 1,200 employees and boasts a revenue of more than 180m in Q2 of 2020, doubling up from its previous quarter.
In 2021 and well into 2022 so far, Robin Hood has lost a lot of its popularity. Its involvement will limiting trades on GME, regarded by many as interupting a social movement, together with a sliding market particularly on Tech and IPOs, made its stock decline heavily. This negative view of the company and its stuck may change now that FTX’s owner bought a stake in it.
For more information, read our Robinhood Trading Platform and App Review 2021 For a comparison review, check out this articles:
Conclusion – USA Brokerage Firms
Choosing a reliable and secure business partner to work with for the long term is difficult, and in the same fashion – choosing the best stock brokerage firm which you will be investing through for years to come. Each USA stock broker has its own pros and cons and they all claim to be the best brokers around for 2022.
Our comparison of the top 10 brokerages didn’t focus on which company is cutting itself thinner in terms of commissions and fees because we don’t feel that’s the main area worth comparing. Instead, we focused on the largest brokerage firms which have a long history of positive reviews from clients and seem financially sturdy to be to be too big to fail, just like a bank.
It’s true that brokerage fees are extremely important and will mean a lot, especially considering the compounding interest concept, but what’s more important is to have a broker that you can trust in every way:
- Bugless software to allow you to execute orders quickly and efficiently.
- Multi-device support so you can trade on the go.
- As close as possible to 24\7 readily available support to assist you with any problem in REAL TIME.
- Coherent and friendly terms and conditions.
- Wide variety of instruments to trade, as well as derivatives.
- Providing access to multiple markets outside of your domestic market with easy and fast currency exchange (although not a proper “currency broker“, i.e. they would not serve customer who are simply interested in obtaining access to currencies)
The top 10 largest brokerage firms enable all of that and hence we believe are the best online brokerages for 2022. Please note we do not offer non-USA selections, for that you can visit this brokerage list.