These Are The Top Three Largest Trading Firms in the World

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It’s never easy to choose a trading firm, especially if you’re a beginner. With so much information available online, it’s nearly impossible to sort between the companies that are being honest and the ones that are inflating their success.

There’s no need to worry if you’re unsure what firm to go with because Aikido finance has got you covered.

Here’s our list of the top-performing trading firms of 2021

#1 BlackRock

BlackRock is a multinational investment company based in the United States. The firm manages about $9.6 trillion in assets for clients as of 2021.

Blackrock’s success in the years since its founding is nothing short of inspiring. Despite starting with just 8 employees, the company has grown into one of the largest money management firms in the United States.  Most companies take a lot more time to achieve the growth that Blackrock has, and its success is even more interesting when you consider the industry it’s in.

The global investment industry is highly concentrated. Even though it comprises about 70,000 funds, over 99% of the U.S fund investments went into just 185 of them.  This level of limitation makes it incredibly difficult for new entrants to penetrate the market.  Despite these problems, Blackrock has earned a dominant position by offering various products and taking advantage of market changes.

Why invest in BlackRock

Variety

Blackrock has products for several aspects of the asset management industry. The company offers active investment management, exchange-traded funds, and more than 600 mutual funds. This means it caters to both active and passive investments, and its funds provide access to fixed-income, equity, commodity, and multiple-asset funds.

getting started

BlackRock does not employ financial advisors, so the best way to get started is to consult with a financial professional. The company partners with several financial professionals across the United States to ensure they have the appropriate tools for building financial plans and investment portfolios suited to client goals.

Once you’ve found a financial investment professional, you should

  • discuss your financial goals – this should include what you want to achieve as an investor
  • BlackRock’s new investment solutions that may suit your portfolio – you might identify a new financial instrument that can help you achieve your goals
  • review each fund’s prospectus before you invest.
  • You should know what you’re committing to before you let go of your money. Whether you’re investing in bonds, stocks, or an investment fund. There might be special terms and conditions you didn’t know about, so you should carefully review all the requirements.

#2 Vanguard

Vanguard is an investment advisor based in Pennsylvania. With about $7 trillion in global assets under management, it is the largest provider of mutual funds and the world’s second-largest provider of exchange-traded funds in the world after BlackRock. Vanguard prides itself on the fact that it’s not owned by shareholders but by the people who invest in their funds. The company gives its members access to personalized financial advice, high-quality investment, retirement tools, and actionable market insights.

why invest in Vanguard

Mutual ownership

vanguard is the only mutually-owned mutual fund company in the world. This approach has allowed it to avoid the many conflicts of interest that plague traditional mutual fund companies. You get to keep all the profits and dividends that would have gone to the fund’s owners

low cost

the average expense ratio (the measure of what it costs an investment company to operate a mutual fund, usually passed on to the investor) for Vanguard products was 0.35% in 1990. The rest of the industry was at about 1.09%. Between 1990 and 2011, Vanguard’s average expense ratio went down to 0.25%, even though the sector had increased to 1.38%.

Anyone who knows how compound interest works will tell you that 1.13% a year, aggregated over 2 or 3 years, is an enormous amount of money. But the good news is that Vanguard’s fee went down even further (0.1%) in 2020. This makes Vanguard the least expensive investment money manager to invest in by far.

Performance

Unsurprisingly, lower expenses allow Vanguard products to perform better than funds, particularly in fixed income arrangements.  In fact, they have consistently outperformed most of their peers over the last decade.

Getting started

getting started with Vanguard is a relatively straightforward process. Once you’ve decided which funds you want to buy, all you need to do is visit the company’s online portal to create an account. Note

(a) you will need at least $1000 to get started

(b) You will need to choose an account type based on your savings goal

#3 Charles Schwab

The Charles Schwab Corporation offers electronic trading, commercial banking, and wealth management advisory services to institutional and retail clients. It has over 360 branches in financial centers in the United Kingdom and the United States and is the third-largest asset manager behind Blackrock and Vanguard.  The company has led the industry’s shift to commission-free stock and ETF trading, and it took on nearly 16 million customers in 2020.

why invest with Schwab

Accessibility

the company has vast resources and is committed to providing the best customer experience for multiple customer types. The broken has various accessibility options for traders that include a polished web interface, a mobile application, and a desktop application for sophisticated charting, trading, and analysis.

Free trades

swab lets you trade ETFs and stocks for free, and they consistently improve price execution on more than 90% of trades.

Support

Schwab also has an excellent customer support team. They’re available via chat and direct phone calls. As a Schwab customer, you’ll get access to account and position tracking, a full suite of calculators and reports, free news, research, stock screeners, charting, educational support, and live content offerings.

Getting started

To get started with Charles Schwab, all you need to do is open an online account. You can do so with your phone or by personally visiting any of their 300 branches. The online process can get you up and running in about 10 minutes.  There won’t be any fees for opening or maintaining your account. However, special fund expenses, account fees, and brokerage commissions may apply.

Conclusion

Stock investing can seem like a complicated and risky undertaking (sometimes it is!), especially for new investors.  But these companies make it easier for you by offering some of the most reliable investment options on the market.  They can handle all the complex stuff while you watch your money grow.

That said, if you’d like to be more involved in the process, you’ll need to learn more about how the markets work, and Aikido is here to help! You can create your own portfolio in less than five minutes for free today.

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