Best investment firms in 2024

What is an Investment Company?

An investment company is generally understood to be a financial services firm that offers investors more than a simple brokerage firm that enables investors to buy and sell stocks. Investment companies provide investors with access to investing in a broader range of financial markets, such as commodity futures, options, foreign exchange (Forex), and cryptocurrencies. Most also offer thousands of mutual funds and ETFs, and multiple account types, such as Individual Retirement Accounts (IRAs).

Investment companies also offer professional investment services that include things such as personal financial advisors, investment fund managers, portfolio management services, record keeping of investments, and tax planning assistance.

The Five Best Investment Companies

The criteria for selection on this list of the top investing companies took into consideration several factors, including breadth and quality of investment services provided, investing fees, fiduciary stance, reputation, customer service, trading platforms, and investor education resources.

Fidelity Investments

Fidelity Review

Fidelity Investments has steadily polished its reputation with investors year by year, mostly by continuing to expand and improve its services, while reducing investing costs. Fidelity commonly garners five-star ratings from clients for its relatively low investing fees, outstanding market research, and excellent personal service.

Fidelity offers investors a choice of more than 10,000 mutual funds they can invest in that have no transaction fees. Its Fidelity Zero funds require no minimum investment and come with a zero expense ratio.

At Fidelity, there’s an account type available for virtually any investor. The account types primarily vary in terms of what financial assets can be invested in, minimum deposit requirements, and the level of investing assistance provided.

For example, the basic “Fidelity Account” offers investors exposure to thousands of stocks, options, bonds, ETFs, and mutual funds – but doesn’t provide the access to investing in commodities, cryptocurrencies, and Forex that other Fidelity accounts offer. The Fidelity Account comes with limited investment assistance but has very low fees and no minimum deposit. If an investor can make a minimum initial deposit of $25,000, they can opt for the “Fidelity Personalized Planning and Advice” account. That account comes with a robo-advisor portfolio manager and a personal financial advisor to help clients map out their road to wealth.

Fidelity offers several other account options, including all types of IRAs, margin accounts, and wealth management services.

Fidelity appeals to many self-directed investors because of its outstanding investor education resources and financial markets research. Along with a vast collection of articles and videos archived in its online investor learning center, there are weekly investor seminars and investment research and commentary from more than 20 sources. “Fidelity Viewpoints”, Fidelity’s own investment analysis newsletter usually draws rave reviews from clients. Finally, throw in a very user-friendly trading platform and stock screener.

Vanguard

Vanguard Review

Vanguard is one of the world’s largest investment firms and creators of ETFs and mutual funds. It has clients in more than 150 countries around the globe, and more than $7 trillion in AUM.

Much like BlackRock, Vanguard aims to offer innovative investments and deliver top notch customer service at relatively low prices. As of 2021, the average expense ratio on the many fund investments that Vanguard offers was only 0.09%, well below the industry average of 0.49%.

A unique characteristic of Vanguard is its company structure. Vanguard is owned not by outside shareholders, but by its own mutual funds, that are, in turn, owned by their investors. This cleverly devised corporate structure enables Vanguard to share company profits with its funds’ shareholders by offering lower fees.

Vanguard financial advisors focus on helping investors create and attain reasonable investment goals. To serve that purpose, it offers investors a wide range of investments and investment portfolio strategies. Vanguard also provides extensive investor education resources and tools, with a large library of webinars, podcasts, and articles on personal finance and investing.

Among the many account types offered at Vanguard is a robo-advisor account – the Vanguard Digital Advisor Account. The robo-advisor service only requires a $3,000 minimum investment, and only charges an annual management fee of $2 per every $1,000 invested in the account.

Most of the funds that Vanguard offers require a minimum initial investment of $1,000 or more. Investors have access to stocks, options, funds, bonds, and certificates of deposit (CDs), but Vanguard doesn’t currently offer the ability to invest in commodities or cryptocurrencies.

Charles Schwab

Review

Charles Schwab led the way in offering discount stock trading back in the 1980s, and has maintained a reputation for offering low price financial services.. It’s known primarily as a brokerage firm, but offers many financial services beyond just stock and option trading. Investors can take advantage of zero account minimums, low fees, and access to pretty much every type of financial asset except cryptocurrency.

Schwab gives investors the ability to implement an investing strategy that broadly diversifies their portfolio internationally. The Schwab Global Account provides investor access to the 12 most widely traded foreign financial markets. Clients can consult with and get investment advice from one of Schwab’s Global Investing Services Specialists. And, as with most investor accounts offered by Charles Schwab, there’s no minimum deposit requirement.

Charles Schwab is one of the oldest top investment firms, but it doesn’t just rest on its past successes. The financial experts at Schwab continue to develop new investment products and services to help investors. The company’s website has an investment tool that provides a quick and easy way for investors to take a look at what kind of monthly income their current savings and investments could afford them in retirement.

Perhaps the most attractive feature at Charles Schwab is its investor satisfaction guarantee. Any investor who isn’t completely satisfied with the investment services Schwab has provided can get a full refund of commission charges or other trading fees.

All of Schwab’s registered investment advisors are fiduciaries, legally committed to putting client interests first, over the company’s interest in selling its investment products or services.

Capital Group

Capital Group has been helping investors for almost a century. Any financial services firm that has been in business that long must be doing things right. Capital is a multi-national investment company, with offices spread across North and South America, Europe, and the Asia-Pacific region.

Capital Group is an excellent choice for retirement planning and investing, as its focus has consistently been on long-term investing strategies. Capital’s personal financial advisors help investors in determining “real world” financial goals, such as “buy a 5,000 square foot home in Arizona”, rather than just aiming for monetary profit targets.

A unique feature of Capital Group is that it puts its money where its mouth is. That is, Capital’s own investment associates make substantial investments in Capital’s fund offerings. Therefore, they have a stake in the funds being profitable just like Capital’s clients do. Capital Group funds are managed by multiple portfolio managers rather than just one, in order to reduce risk by taking advantage of a broader range of investing experience and expertise.

Over the past 45 years, Capital Group’s five equity-focused American Funds have outperformed the overall stock market by more than 100% (total return of $3.7 million versus the S&P 500 Index return of $1.6 million, from a starting investment of $10,000 in 1976).

Although Capital Group offers a wide range of actively managed funds that charge relatively low fees, along with excellent investment advisor services, it does not offer any passive index funds for investing.

BlackRock

In just a little over 30 years, BlackRock has grown to become one of the largest investment companies worldwide, with more than $10 trillion in assets under management (AUM) and clients in more than 35 countries. Like Vanguard, the next investment company on this list, BlackRock is one of the largest creators of mutual funds and ETFs.

One of the hallmarks of BlackRock is its commitment to acting as a fiduciary for its clients, which is a commitment to put the client’s best interests first, eliminating any conflict of interest with the investment advice BlackRock offers.

As a global investment company, BlackRock has investment advisors whose knowledge and expertise extend well beyond just the U.S. stock market. That makes it a good choice for investors who want a truly diversified investment portfolio. BlackRock offers investors access to not only international stocks and bonds, but also many alternative assets, including investments in private equity, real estate, and commodities. It serves a wide range of both institutional and individual retail investors.

BlackRock is ever an investment innovator. One of its latest creations is its Life Path target date investment fund that’s designed to help investors safely reach retirement over the course of many years in both bull and bear markets.

What are the best investment firms for beginners?

There are various factors to consider before choosing the best investment firm. Having a realistic review of these factors helps to choose the most suitable trading platform.

Here are the 7 tips that help to choose the best stock company for beginners:

No Commissions

Commissions can eat the revenues of traders and investors. So, we suggest traders choose a trading platform that offers trading services 100% commission-free.

User-friendly Application

Traders need to quickly navigate from one window to another to execute orders on time. Applications that navigate and load quickly are suitable for trading.

Paper Trading

Paper trading helps beginners gain hands-on experience in trading without any capital investment. Paper trading also helps users to familiarize themselves with various features of the trading platform.

Education

Trading is a long journey. Traders need to update their skillsets and strategies regularly. A brokerage firm that does not offer free educational content would not contribute to your professional growth. Traders may want to choose a broker that provides educational content in the form of videos, webinars, articles, trading books, and podcasts.

Low or No Maintenance and Inactivity Fees

Most brokers charge annual maintenance and inactivity fees; these are hidden charges most traders pay to brokerage firms without their knowledge. Trading platforms that don’t charge inactivity fees are ideal for beginners.

Automated Portfolio Management

Beginners may need to choose a trading platform that helps to create a diversified portfolio by investing money in various asset classes at a low asset-management fee.