One of the first steps toward building your financial nest egg is choosing the right brokerage firm. Your brokerage can serve as the foundation of your investment journey, offering tools, resources, and services tailored to your financial goals.
For investors seeking reliable, feature-rich, and customer-centric brokers, Fidelity, Charles Schwab and Vanguard stand out as top choices. Each of these platforms offers distinct advantages tailored to different investing needs. Here’s an in-depth look at why these brokers are among the best options for 2025.
The largest brokerage firms by assets under management
| Platform | Assets under management, end of 2023 (trillions) | AUM, 2024 (trillion) | Change |
|---|---|---|---|
| Charles Schwab | $8.50 | $10.31 | 21% |
| Vanguard | $8.60 | $10.10 | 17% |
| Fidelity | $4.90 | $5.80 | 18% |
| J.P. Morgan Chase | $2.90 | $4.20 | 45% |
| Edward Jones | $1.80 | $2.20 | 22% |
| Bank of America/Merrill Lynch | $1.30 | $1.90 | 46% |
| Morgan Stanley | $1.15 | $1.60 | 39% |
| Coinbase | $0.20 | $0.27 | 37% |
| Robinhood | $0.10 | $0.20 | 96% |
| Ally Invest | $0.01 | $0.02 | 33% |
With so many options to choose from, it can be overwhelming. In this article, I will cover the top 3 firms.
Website: Visit Fidelity
Why Choose Fidelity: Fidelity has built a reputation for exceptional customer service, comprehensive investment options, and a commitment to providing low-cost investment solutions. Personally, I use Fidelity and have been a customer for several years.
- Key Benefits:
- Commission-Free Trading: Enjoy $0 commissions on stocks, ETFs, and options.
- No Account Minimums: Start investing with any amount.
- Research and Tools: Access industry-leading research and a wide array of educational resources.
- Retirement Planning: Robust tools to help manage and optimize your retirement savings.
- Ideal For: Long-term investors, retirement planners, and those seeking in-depth research tools.
Website: Visit Charles Schwab
Why Choose Schwab: Charles Schwab excels in offering a seamless investing experience with powerful tools and a client-first approach. Its platforms cater to both beginner and experienced investors.
- Key Benefits:
- $0 Commissions: Free online trades for stocks and ETFs.
- Robust Platforms: Options include the intuitive Schwab.com, the advanced StreetSmart Edge, and mobile apps.
- 24/7 Customer Support: Accessible, knowledgeable support whenever you need it.
- Extensive Investment Options: Access to stocks, bonds, mutual funds, ETFs, and more.
- Ideal For: Investors of all experience levels, especially those who value customer service and flexibility.
Website: Visit Vanguard
Why Choose Vanguard: Vanguard is synonymous with low-cost investing and a focus on long-term wealth building. It’s an excellent choice for investors prioritizing expense ratios and index fund investing.
- Key Benefits:
- Low-Cost Funds: Vanguard is a pioneer in low-fee index funds and ETFs.
- Focus on Retirement: Comprehensive IRA options and planning tools.
- Client Ownership: Structured as a client-owned company, profits are reinvested to benefit clients.
- Trusted Reputation: Decades of leadership in the investment space.
- Ideal For: Long-term, cost-conscious investors and those focused on retirement planning.
Factors to Consider When Choosing Among These Brokers
- Investment Goals: Schwab excels in versatility, Vanguard focuses on low costs, and Fidelity shines in research and education.
- Fee Structure: All three offer competitive fee structures, but Vanguard is the leader in low-cost funds.
- Platform Usability: Schwab’s advanced platforms are great for active traders, while Fidelity and Vanguard cater to a broader audience.
- Customer Support: Schwab offers 24/7 support, while Fidelity and Vanguard provide reliable assistance during business hours.
- Retirement Planning: Vanguard and Fidelity both offer robust retirement planning tools, with Schwab also providing comprehensive solutions.
Conclusion
Fidelity, Charles Schwab and Vanguard are leaders in the online brokerage industry for good reason. Whether you’re a new investor, a seasoned trader, or someone focused on retirement, one of these platforms is likely to meet your needs. Compare their features, costs, and tools to find the one that aligns best with your investing goals.
Data sources: Investor relations documents, SEC filings, and company press releases. Data for Vanguard, Fidelity, J.P. Morgan, Bank of America/Merrill Lynch, Morgan Stanley, Coinbase, and Ally Invest as of Sept. 30, 2024. Data for Edward Jones as of September 27, 2024. Data for Vanguard as of May 31, 2024. Data for Charles Schwab and Robinhood as of November 30, 2024. AUM for Morgan Stanley/E*TRADE represent assets from E*TRADE self-directed accounts as reported by Morgan Stanley Wealth Management