The world of investing can be a confusing place, whether you’re just starting out or have years of experience. With markets constantly changing, how do you know when it’s the right time to buy or sell? The secret is that you don’t necessarily need to. Investment companies — organizations that manage people’s money and offer financial advice — provide a range of services to help clients navigate the ups and downs that define market behavior.
Investment Companies in the U.S. to Know
- Fidelity Investments
- Charles Schwab
- TradeStation
- Vanguard
- Betterment
- Morgan Stanley
But not all investment companies are created equal, and many employ different tools and philosophies. From financial advisors to automated investing tools, take a look at some of the top investment companies and how they help deliver the best returns for investors.
Top Investment Companies in the U.S.
Fidelity Investments helps make investing more accessible by eliminating commission fees, account fees and minimum balances. Its digital products include an Active Trader Pro platform that delivers real-time data to inform investors’ decisions and a dashboard that displays easy-to-understand data visualizations. Users can also manage their portfolios and execute trades on the go with Fidelity’s mobile app.
Key features:
- $0 commissions for trades involving online U.S. stocks, ETFs and options.
- Variety of investment options like mutual funds, stocks and CDs.
- Up-to-date insights through tools like the Active Trader Pro platform.
Charles Schwab has more than 50 years of experience managing popular investments like ETFs, stocks, bonds and Roth IRA accounts. Experienced investors can tailor their investing experience to their liking with desktop, web browser and mobile tools provided by Schwab. For investors who prefer a more hands-off approach, the company’s robo advisor can automatically build, oversee and adjust portfolios as needed.
Key features:
- Automated investing supported by a robo advisor.
- Mobile, web and desktop tools make it easy to manage investments.
- Online articles and resources promote investor education.
TradeStation lets investors execute trades from anywhere with its mobile, web and desktop tools, as well as a platform dedicated to futures options. The organization caters to investors of all backgrounds, equipping beginners with a suite of online learning resources like its Options Education Center. With these tools, investors can more easily follow market trends, assess risks and complete near-instant trades.
Key features:
- Extensive online educational resources.
- Trading simulator for testing investment strategies.
- Platforms designed for specific offerings like future options.
Vanguard has become known for its low-cost investments, thanks to $0 trading commissions, fee-free trading of Vanguard mutual funds and ETFs, expense ratios that are often 84 percent less than the industry average and other perks. Robo advisors and a team of human advisors are available as well, helping investors manage stocks, money market funds, ETFs, mutual funds, CDs, bonds and more.
Key features:
- No trading commission and other benefits that lower investment costs.
- Financial guidance provided by human and robo advisors.
- Strong security practices that keep online investing safe.
Betterment focuses on automated investing, developing portfolios that feature diverse assets. Company personnel monitor these accounts, making changes as needed to maximize clients’ return on investments. In addition, Betterment aids investors in creating customized retirement plans and arranging retirement accounts to minimize taxes.
Key features:
- Emphasis on automated investing.
- Retirement accounts are set up to maximize tax savings.
- No monthly or maintenance fees.
As one of the largest investment companies based on market capitalization, Morgan Stanley handles a broad clientele spanning individuals, institutions, corporations and governments. Investors can work with Morgan Stanley to build an investment strategy around equities, fixed income, liquidity and other assets. The company believes in sustainability as well, with a goal of allocating $1 trillion toward sustainable solutions by 2030.
Key features:
- Team of financial and virtual advisors to inform wealth management.
- Investment strategies that cover various assets like liquidity, fixed income and equities.
- Solutions for alternative and sustainable investing.
Merrill Lynch cultivates relationships with each client with its team of more than 13,000 advisors, who advise clients on how to navigate major life moments. Advisors can be reached via the MyMerrill mobile app, which also enables users to monitor market trends, review accounts and submit deposits. Investors who want to do their own planning can access Merrill Lynch’s online tools for college savings, retirement planning and 401(k) rollovers.
Key features:
- Team of advisors who emphasize relationships with clients.
- Online mobile app for accessing assets and Merrill Lynch personnel.
- Digital planning tools available on the Merrill Lynch website.
Edward Jones takes a personalized approach that involves getting to know each investor’s financial goals, supporting those goals with a diversified, long-term portfolio and following the guidelines of the company’s Investment Policy Committee. Whether choosing to work with an advisor or invest on their own, each client can explore a vast selection that includes mutual funds, brokerage account options and Edward Jones-specific accounts.
Key features:
- Team of financial advisors for clients who want more guidance.
- Investing approach grounded in diversified, long-term portfolios.
- Wide range of investment products and accounts.
With more than 90 years of experience, Capital Group has provided customers with broad offerings that cover mutual funds, retirement accounts and plans dedicated to college savings and disability expenses. A team of more than 470 investment managers oversees Capital Group’s funds, supporting investors with market research and insights. Customers can also use online tools to plan ahead for taxes, retirement, college and other financial milestones.
Key features:
- Wide selection of accounts, including disability expenses and college savings accounts.
- Team of investment managers who monitor Capital Group funds.
- Online planning tools for retirement, college and more.
Robinhood lets investors get started with popular cryptocurrencies like Bitcoin and Ethereum for just $1, in addition to more traditional ETFs, stocks and options. Either way, all investors can make commission-free trades and monitor market trends on both desktop and mobile devices. And Robinhood users can gain even more advantages when signing up for a Gold subscription, such as no minimum balances and a 3 percent match on retirement contributions.
Key features:
- Investments as little as $1 to get started with popular cryptocurrencies.
- Mobile and desktop trading tools for faster market analysis and trading.
- Gold subscription that unlocks additional benefits.
AllianceBernstein is a global investment firm that specializes in wealth management for high-net-worth individuals and families, as well as small institutions that work with investors. Each client receives a financial advisor and a wealth management team for comprehensive guidance. AllianceBernstein also adheres to ESG principles, emphasizing values like transparency and reduced carbon emissions to give clients added peace of mind.
Key features:
- Wealth management team dedicated to advising each client.
- Focus on serving high-net-worth clients.
- Adherence to environmental, social and governance principles.
Amplify Platform provides a unified wealth management ecosystem to allow multi-family offices, broker-dealers and RIAs to streamline their operations. Its cloud-based, multi-custodial platform automates analytics, billing, surveillance, trading and onboarding. The company is headquartered in Scottsdale, Arizona.
Key features:
- Comprehensive intelligence to simplify advisory business oversight.
- Custom automated onboarding workflows.
- Tools for rebalancing portfolios and minimizing inefficiencies tied to tax management.
- Risk management and compliance capabilities.
Ariel Investments serves investors with separate accounts, mutual funds and private equity solutions. The firm scopes out companies that tend to fly under the radar, develops models and forecasts to test the resilience of each company and waits for the right price before officially investing. As a result, Ariel Investments helps investors maximize their earnings when investing in mid-market businesses, international organizations and more.
Key features:
- Emphasis on investing in companies that are often ignored or misunderstood.
- Investing approach that involves rigorous testing and risk assessment.
- Diverse funds that focus on companies of different sizes.
Dimensional Fund Advisors bases its approach on market research and the latest data to inform its funds, rather than relying on past performance. Its funds are sorted into three categories based on risk, with its Vector Series aiming for the highest returns while accepting the most risk. In addition, Dimensional factors ESG principles into its decisions and considers the environmental impact of its investments.
Key features:
- Research-based investment approach that uses real-time market data.
- Organizes funds into three investing categories based on market deviation and risk.
- Factors environmental impact into investment decisions.
Short for the Bank of New York Mellon Corporation, BNY consists of seven investment firms that run a slate of ETFs and long-term mutual funds covering fixed income, equities and sectors like retail and government. While investors are free to choose from BNY’s selection, they can also set up automatic investments for convenience. The company further informs investors with online resources on investing how-tos, a tax center and insights from its Investment Institute.
Key features:
- Broad group of ETFs and mutual funds that span sectors like retail and government.
- Option to use automatic investing and BNY advisory services.
- Digital resources, including online research from the BNY Investment Institute.
With more than 130 years of experience, Northern Trust has developed a diverse clientele of individuals, financial advisors, insurance companies and other financial institutions. Northern Trust’s funds deal with cash, equity, fixed income and multiple assets, and revolve around the company’s belief in responsible investing. For investors looking ahead to different stages of life, the firm also offers wealth planning advisory services.
Key features:
- Funds that handle cash, equity, fixed income and other assets.
- Principles of stewardship guide responsible investment decisions.
- Wealth planning advisory services for investors at different stages in life.
Wealthfront has compiled more than 1,500 stocks and sorted them into collections like cloud computing, software companies and semiconductors for investors to peruse. All they need is $1 to get started, and they can enjoy no commissions when buying and selling. Wealthfront is also known for its automated investing, curating portfolios of funds from up to 17 different asset classes based on each investor’s tax information and risk tolerance.
Key features:
- More than 1,500 stocks sorted into groups like semiconductors and cloud computing.
- Automated investing accounts that feature funds from up to 17 asset classes.
- Fractional investing lets investors buy stock for as little as $1.
American Century Investments has various ETFs and mutual funds, as well as specialized accounts like 401(k)s, 529 plans and 403(b) plans. For retirement planning, the firm also has what it calls One Choice portfolios, which are automatically structured and adjusted based on investors’ target retirement date or risk tolerance. And clients can schedule consultations or sign up for ongoing guidance from American Century’s financial advisors.
Key features:
- Expansive account offerings for education, retirement and more.
- Specialized portfolios that cater to varying target retirement dates and risk levels.
- Financial advisors who can help clients with long-term financial planning.
SoFi gives investors a head start by rewarding $1,000 in stock to those who invest at least $50 within the first 30 days of opening an Active Invest account. Other perks include commission-free trades and the option to buy fractional shares, meaning investors can own stock in a company for just $5. Beginners or those who want to take a step back can use SoFi’s robo advisor to receive recommendations and automatically manage their portfolio.
Key features:
- Commission-free trades and other benefits for active investors.
- Fractional investing lets investors own stock in a company at a cheaper price.
- Robo advisor automatically builds and manages investment portfolios.
T. Rowe Price prioritizes research by sending more than 500 members into 17 global markets to compile insights. It uses these findings to inform its collection of ETFs and mutual funds that include asset allocation, money market, bond and target date funds. While all investors can access T. Rowe Price’s digital tools and planning resources, investors who meet certain requirements can receive more detailed advice for retirement and asset management.
Key features:
- Variety of ETFs and mutual funds spanning different asset classes.
- Programs for certain investors who want retirement and asset management advice.
- Research-heavy approach that involves sending experts directly into the field.
Frequently Asked Questions
What is an investment company?
An investment company is tasked with pooling investors’ capital and deciding how to invest it in different assets in a way that maximizes the returns for its investors. Besides building different portfolios for investors to explore, investment companies may also offer automated investing products and financial advisory services.
How do investment companies make money?
Investment companies typically earn profits by buying and selling various types of assets. They may also charge investors fees for using their products and services.
What is the difference between a brokerage and an investment company?
A brokerage acts more as an intermediary, buying and selling assets on behalf of clients and receiving a commission from each trade. Meanwhile, an investment company pools investors’ capital and operates as a fund, investing clients’ capital while offering each client shares in return. While brokerages typically work with individual investors, investment companies may work with corporations and larger institutions as well.
Are investment companies safe?
Investment companies registered with the Securities and Exchange Commission are subject to more regulations, so they may be safer options. But no investment is entirely risk-free, so it’s still important to do your own research and understand your own risk tolerance.
