Who are the big 3 brokerages?


Editorial team Published on

The "Big Three" traditional brokerage firms in the United States are Vanguard, Fidelity Investments, and Charles Schwab.

Overview of the Big Three

  • Vanguard
    • Focus: Low-cost passive index investing and mutual funds.
    • Structure: Uniquely client-owned (owned by its fund shareholders).
    • Best for: Long-term buy-and-hold index fund investors.
  • Fidelity Investments
    • Focus: All-around retail investing, retirement accounts (largest 401(k) provider), and zero-expense ratio funds.
    • Strengths: Excellent customer service, robust digital platforms, and strong cash sweep options.
    • Best for: Beginners and well-rounded everyday investors.
  • Charles Schwab
    • Focus: Full-service brokerage, wealth management, and active trading.
    • Strengths: Integrated professional tools like thinkorswim (following the TD Ameritrade acquisition) and extensive physical branch access.
    • Best for: Active traders and those wanting robust research and advisory services.