Top Largest Brokerage Firms in the USA

The concept of investing for future gains has been around since time immemorial, 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 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 brokerage. You should only invest with brokerage firms that have lowered risks, give better rates, commissions, and general services. Only the best of the best brokerage firms, typically the largest ones, can offer you these features. So, let’s get started. Here is why you should invest in brokerage firms as well as the top brokerage firms you can find in the United States.

Why Invest?

The most obvious benefit of investing in stock through brokerage firms is that you will always be financially secured. You shouldn’t depend solely on your pension and savings for life after retirement because there are diverse factors that can affect your account without warning. Market conditions could change (inflation is a thing) and also, financial changes could impact your company (bankruptcy). 

Most retirees end up discovering late that the money that they had saved up isn’t enough to keep them financially secured for the rest of their lives. By investing in brokerage firms, you never have to be scared that you’d wake up one day after retirement with little or no money left. More so, high returns come with the investment. So, if properly managed, your investment would even continue to benefit your loved ones after you are gone. 

Largest Brokerage Firms in the USA

The largest 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 5 of the largest and arguably the best brokerage firms in the USA in no particular order.

TD Ameritrade

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

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. 

For more information, read our Fidelity Review. Or maybe a Fidelity vs TD Ameritrade Comparison Review.

Charles Schwab

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

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.

Vanguard Group

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

Conclusion

To choose a good service provider for investing in a brokerage for a pension account, the first thing that you have to keep in mind is to research thoroughly. You should find out what kind of business deals you are interested in. Once you have chosen a firm that fits all your needs, you can now compare the prices and the commission rates that you will be getting.

Compare the different types of investment options you are dealing with and also the rates that they are offering. Asides from these major brokerage firms there are so many others you can approach. The most important thing is to choose a brokerage firm that can provide you with full support for good investment returns.