In this piece, we will look at 15 Biggest Stock Brokerage Firms in the US. If you wish to skip our detailed on the diverse landscape of the fields related to stock brokerage, you can go directly to 5 Biggest Stock Brokerage Firms in the US.
The asset management market, where stock broking is a part, has been booming worldwide. The market hit about USD 421.22 billion in 2023 and is set to grow at a solid 12.5% CAGR from 2024 to 2032, reaching a whopping USD 1215.86 billion by 2032.
Asset management is all about smartly handling assets to bring in the big bucks while minimizing risks through slick development and disposal strategies. Businesses are loving asset management solutions for their perks like smoother operations, better resource use, and more profits. Integrating asset management software with hospital systems is a hot trend, helping to track staff and gear data for improved patient care and management. Cloud-based solutions are getting popular for creating one-stop asset hubs with easy access to info, maintenance records, and docs, boosting transparency and control.
Now, in the stockbroking market, things are looking bright too! A 12.2% CAGR is on the cards from 2023 to 2032, with a market value of USD 40.5 billion in 2022 and a projected USD 115.15 billion by 2032. Market dynamics in stockbroking are shaped by market swings, investor feelings, tech advancements, and digital changes. Stockbrokers are hopping on the tech train, using online platforms, mobile apps, and fancy trading algorithms to trade faster, smarter, and delight customers.
In similar context, banks have come a long way over the years, expanding their services beyond just the usual deposit and lending operations. They now offer a wide range of financial products and services, including wealth management, currency exchange, and investment banking.
In today's world, banks have become important players in the asset management and brokerage services market, adding these offerings to their diverse service mix. They cater to a variety of clients, from individuals to businesses and other institutional customers. The definition of a commercial bank has undergone significant changes in recent decades, reflecting the evolution of their services. Some of the top investment banks globally, like JP Morgan & Chase, Bank of America, Industrial and Commercial Bank of China Ltd., and Wells Fargo, have become key players in the financial landscape, with market caps of $554.98 billion, $283.49 billion, $239 billion and $206.67 billion, respectively, as of writing this article; their current market caps showcase their substantial influence and market presence.
With this, we will now head over to our list of 15 Biggest Stock Brokerage Firms in the US.
15 Biggest Stock Brokerage Firms in the US
A business executive discussing investment opportunities in a stock exchange office.
Methodology
To come up with this list of 15 Biggest Stock Brokerage Firms in the US, we conducted a thorough research, focusing on big asset management and investment advisory companies of the world, pertaining to various asset classes, including stocks and shares; our purpose of doing so is just to encapsulate interests of various readers looking for reliable institutions for stock investing, as well as other securities.
We ranked the companies based on their Assets under Management (AUM), as of 2023-year end.
With this, let’s now jump to our list of 15 Biggest Stock Brokerage Firms in the US.
By the way, Insider Monkey is an investing website that tracks the movements of corporate insiders and hedge funds. By using a similar consensus approach, we identify the best stock picks of more than 900 hedge funds investing in US stocks. The top 10 consensus stock picks of hedge funds outperformed the S&P 500 Index by more than 140 percentage points over the last 10 years (see the details here). Whether you are a beginner investor or professional one looking for the best stocks to buy, you can benefit from the wisdom of hedge funds and corporate insiders.
15th on our list of Biggest Stock Brokerage Firms in the US is DWS Group. DWS Group GmbH & Co. KGaA (Frankfurt:DWS.F) - DWS Investment Management Americas in U.S. context - does all sorts of things like managing portfolios, giving advice, and diving into stocks, bonds, and fixed income. DWS Investment Management Americas is all about lending a hand to clients worldwide. They're under the DWS Group GmbH & Co. KGaA (Frankfurt:DWS.F) umbrella and rocking a massive $974.26 billion in assets as of December 31, 2023. These guys are aiming high to be top-notch asset managers worldwide, and they're backed by 60+ years of experience with a killer rep in Germany, Europe, the Americas, and Asia.
In 2023, things were a bit of a mixed bag for them. Adjusted revenues took a little dip by 3% due to lower management fees linked to decreased assets under management. But hey, performance and transaction fees plus other revenues went up compared to the year before. Their profit before tax slightly dropped by 11%, and net income was 5% lower.
14. Geode Capital Management
Assets under Management: $1.16 trillion
Geode Capital Management is all about playing the numbers game in the stock brokerage world. They're your go-to for core beta exposures in different equity and niche asset classes. Geode keeps things simple and transparent for clients, focusing on delivering solid performance with careful risk management.
When it comes to their top guns in the portfolio, you'll find heavy hitters like Microsoft Corporation, Apple Inc., Amazon, NVIDIA Corporation, and Alphabet Inc. They're definitely playing with the big leagues!
LPL Financial Holdings Inc. (NASDAQ:LPLA) is this cool wealth management crew that does it all—they're an independent broker-dealer, RIA custodian, and handle third-party services for financial pros, RIA firms, and institutions.
In the 4th quarter of 2023, LPL Financial Holdings Inc. (NASDAQ:LPLA) pulled in a net income of $218 million, with diluted earnings per share at $2.85, a 28% drop from last year. They also saw total organic net new assets of $25 billion, showing an 8% growth rate for the year. LPL Financial Holdings Inc. is 13th on our list of Biggest Stock Brokerage Firms in the US.
Rowe Price Group, Inc. (NASDAQ:TROW), kicking it since 1937, is your go-to for nailing those long-term investment goals. T. Rowe Price Group, Inc. (NASDAQ:TROW) are all about top-notch investing; with a cool $1.45 trillion in assets under management by December 31, 2023, they've got millions of clients worldwide.
The financial deets from 2023 are looking pretty solid for them: Revenue stayed flat at US$6.46 billion compared to FY 2022, while Net income jumped up 18% to US$1.79 billion from FY 2022. Moreover, they smashed it with a profit margin of 28%, up from 24% in FY 2022, while EPS hit US$7.98, a boost from US$6.73 in FY 2022.
So, we've got Franklin Resources, Inc. (NYSE:BEN), making waves as a global investment pro serving clients in 155+ countries. These folks manage a cool $1.46 trillion in assets by December 31, 2023, up from $1.41 trillion in November 30, 2023, thanks to positive markets and net inflows.
But for the quarter ending December 31, 2023, their AUM showed some market magic too, backed by net outflows of $5.0 billion, pertaining to $10.8 billion of reinvested distributions. Franklin Resources, Inc. is 11th on our list of Biggest Stock Brokerage Firms in the US.
Morgan Stanley (NYSE:MS) is all about making your money work for you—whether you're an individual, a big institution, or even a government. They're like the financial matchmaker, pairing folks and entities with the capital they need to reach their dreams. Workplaces love them too, as they offer top-notch financial solutions for companies and their employees, blending personal advice with the latest tech.
In 2023, Morgan Stanley (NYSE:MS) Investment Management branch saw their assets under management boom by 12% to hit $1.46 trillion, thanks to market gains outweighing any outflows. The cherry on top? Their AUM shot up by 5.1% in the fourth quarter, making them the real deal in the stock brokerage world.
Invesco Ltd. (NYSE:IVZ) is a big shot in the investment world, dishing out a whole range of portfolio solutions. They're all about results, you know? When they checked their piggy bank recently, Invesco Ltd. (NYSE: IVZ) found they were sitting on a cool $1,585.3 billion in assets under management, a nice 2.8% bump from the month before.
Invesco Ltd. (NYSE:IVZ) snagged a sweet $5.1 billion in net inflows from the long-term game. But it's not all rainbows and unicorns—there were some outflows too, with $1.3 billion from non-management fees and $13.0 billion from money markets. Market magic played its part too, boosting their assets by $39 billion. In the end, with a little help from FX and reinvested dough, they added another $13.3 billion to their pile. Invesco Ltd. is 9th on our list of Biggest Stock Brokerage Firms in the US.
8. Bank of America Corporation's (NYSE:BAC) Merill
Assets under Management: $1.6 trillion
Bank of America Corporation (NYSE:BAC) has a division named Merrill Edge, which is all about hooking you up with investment goodies like brokerage and retirement accounts, online trading, and financial smarts.
The big shots over at Bank of America Corporation’s (NYSE:BAC) "Merrill Edge" wealth management arm were pretty pleased with themselves in 2023 as they bagged nearly 40,000 new client relationships. That's a 47% jump from the previous year and a smashing record since 2019. Word has it that they also beefed up their team with about 175 more Merrill advisors and saw a 45% spike in those high-rolling ultrahigh net worth clients.
7. The Bank of New York Mellon Corporation (NYSE:BK)
Assets under Management: $2.0 trillion
Next, we've got the The Bank of New York Mellon Corporation (NYSE:BK), or BNY Mellon, doing their thing in the finance world from the heart of New York City. They're all about managing investments, providing investment services, and wealth management on the side.
These guys were on fire with a huge $47.8 trillion in custody and/or administration assets and $2.0 trillion under their wing in management as of December 31, 2023.
The Bank of New York Mellon Corporation (NYSE:BK) also killed it on the financial front in 2023, reporting a sweet $3.87 earnings per share on $17.5 billion revenue, up 7% from the previous year. Their expenses rose by 2% to $13.3 billion, but their return on common equity landed at 9%. When they smoothed out the numbers, earnings per share hit $5.05, up by 10%, revenue was at $17.7 billion, up 5%, expenses were $12.3 billion, and they boasted a solid 22% return on tangible common equity. The Bank of New York Mellon Corporation is 7th on our list of Biggest Stock Brokerage Firms in the US.
Amundi S.A. (PARIS:AMUN.PA), originating from France, offers savings and investment solutions with a broad range of expertise in both active and passive management, across traditional and real assets, using dedicated and integrated investment platforms, operating in U.S. as well.
As of December 31, 2023, Amundi S.A. (PARIS:AMUN.PA) assets under management grew by 7.0% in one year compared to end-December 2022 and by 3.2% in one quarter compared to end-September 2023, reaching $2.21 trillion.
