Charles Schwab Has $9.92 Trillion in Assets Under Management. How Does Your Brokerage Compare?

Charles Schwab is the biggest brokerage with almost $10 trillion in assets under management (AUM). That puts it slightly ahead of Vanguard, which is next in line. It's far ahead of Fidelity and J.P. Morgan Self-Directed Investing. Charles Schwab manages more funds than the combined GDPs of Germany and Japan.

If you want to open an account with a top brokerage firm, having a lot of assets under management or a good number of clients are useful signs. They show that a lot of people trust the firm with large amounts of money. Factors like fees, investment products, and useability matter as well.

Together, these top brokerage firms control over $30 trillion

Charles Schwab and Vanguard are way out in the lead when it comes to AUM. Right now, Charles Schwab controls $9.92 trillion, while Vanguard manages $9.30. With 51.5 million accounts, Fidelity leads the pack in terms of number of clients.

Here's how some of the top firms stack up:

Choosing the right brokerage for you

It's reassuring to know a brokerage has a decent amount of funds under management and a solid client base. But when you're choosing a stock broker, what matters more is finding a brokerage that suits your investment needs.

In addition to SIPC insurance, which is non-negotiable, here are some factors to consider.

Why are you investing?

There are so many different reasons to invest and ways to do it. It's much easier to compare firms if you have a solid idea of what you need and what type of investor you are.

For example, if you're investing for your retirement, look for one of the best brokerages for IRAs. These brokerages will likely have more IRA investment options, low fees, and retirement-specific help. If you are an active trader, you'll have different requirements from a buy-and-hold investor.

What types of assets do you want to buy?

Think about the types of funds or assets you want to buy. There's no point in opening an account only to discover you can't buy the investments you're interested in. Some firms stand out for specific products, such as margin trading or crypto. Others might offer low fees on certain funds.

If you like mutual funds, J.P. Morgan Self-Directed Investing stands out because it doesn't charge commissions on mutual funds. It also pays a generous bonus for new customers right now. Click here to learn more about what this low-fee brokerage has to offer and open an account.

What fees are you willing to pay?

Many brokerages offer low-cost (or no-cost) trading these days. But there are always some fees somewhere -- stock brokers have to make money, after all. And fees can eat into your investment portfolio -- especially if you aren't aware of what you'll be charged for.

Common fees to watch out for include charges to trade less-common asset types, or to deposit or withdraw money. You might have to keep your balance above a certain amount to avoid monthly maintenance fees.

You might decide you're comfortable paying for certain services. For instance, perhaps you prefer to pay a bit extra for a firm that has branches where you can talk to someone face to face.

What investing features do you need?

If you prefer to do things via your phone, try out different investment apps to find the one that's most intuitive for you. Similarly, if you like to use a desktop, you'll find some brokerages have more usable platforms than others.

I like to be able to access a lot of research, and that's certainly something that some brokerages excel in more than others. Other people might want a lot of charting tools or advanced order types. The trick is to understand what features are most important to you so you can shortlist the right brokerages.

Assets under management only tell you so much

There are over 3,000 securities firms in the U.S. The biggest ones manage trillions of dollars and have millions of customers. That can give a certain degree of confidence when you're choosing a brokerage. However, this is only part of the picture.

Look for a firm that will work well for you. That means a brokerage that has the right accounts for you, trades the assets you want to buy, and offers platforms that you find easy to use. Don't be afraid to test out different platforms before you deposit funds.