Best Investment Companies Overview
Key Points:
• Self-directed brokerage accounts and investment-advisory accounts can be opened at
Schwab and
Vanguard.
•
BlackRock mainly offers direct fund accounts for retail investors rather than self-directed brokerage accounts.
• The strongest trading software in this group will be found at
Charles Schwab.
If you are looking for a company to help you save and invest, Vanguard, BlackRock, and Charles Schwab are three well-known names worth considering.
Charles Schwab
Charles Schwab starts our three-way comparison. The company is both a broker-dealer and an investment advisor. Because it is registered in both areas, it can offer both brokerage accounts and managed accounts. The advisory side can include either human help or digital management, while Schwab brokerage accounts can be opened on a self-directed basis or with added advisor support.
Self-directed customers at Schwab get access to many useful digital tools across the company’s trading platforms. For example, there are screeners for stocks, funds, options, and bonds. It is very easy to sort through available investments and find something to buy or sell. These trades can be placed in either cash or margin accounts, as margin is available.
Schwab also offers access to futures, forex, and foreign-stock trading. These extra capabilities are available through specialized Schwab programs, and commissions or spreads can apply depending on the product. For U.S.-listed stocks and ETFs, Schwab charges
$0 commissions for online trades.
Schwab’s thinkorswim trading platforms can be used to place orders for stocks, futures, forex, and options. On desktop, thinkorswim reaches a very high level with a deep set of tools that even professional traders may need time to fully learn.
In addition to its retail brokerage business, Schwab is also an asset manager. It has its own lineup of mutual funds and ETFs. These Schwab funds usually come with low expense ratios and solid, although not always top-tier, Morningstar ratings.
Outside of investing, Schwab operates Schwab Bank. This banking arm comes with FDIC insurance and strong perks, including unlimited ATM surcharge rebates worldwide. Schwab also offers additional banking and lending services, including home-lending solutions and credit cards.
To round out the financial picture, Schwab also helps clients with longer-term planning needs. For example, customers can buy annuities and use other planning services through Schwab. Many of these services are available through local branches, and Schwab still maintains a large physical office network across the United States.
Read
Charles Schwab review »
Promotion: Satisfaction guarantee, ACAT reimbursement, and $0-fee trades at Charles Schwab.
Open Schwab Account
Vanguard
Vanguard does not have branch offices, although it does provide investment advice by phone and online. The company now has several advisory tiers.
Vanguard Personal Advisor Select requires
$500,000,
Vanguard Personal Advisor starts at
$50,000, and
Vanguard Digital Advisor starts at
$100.
For do-it-yourself investors, Vanguard offers self-directed brokerage accounts with access to stocks, options, funds, and bonds. These products can be traded through Vanguard’s website or mobile app, although the software is still not as advanced as what Schwab offers.
Like Schwab, Vanguard has an asset-management division. This part of the company creates and manages the famous Vanguard mutual funds and ETFs. Like Schwab’s funds, these investment vehicles are well known for their low operating expenses.
Although Vanguard does not run a bank, it does offer a Cash Plus Account. This account provides FDIC insurance along with a 3.1% APY. The drawback is that checkwriting and debit cards are not included. And the broader banking extras that Schwab offers, such as mortgages, are not available at Vanguard.
The accounts Vanguard does offer are conveniently linked on the company’s software platforms if they have the same tax ID number on them (the same is true at Schwab).
Read
Vanguard review »
BlackRock
One more investment company worth considering is BlackRock. It is one of the world’s best-known asset managers, although it is not built around retail brokerage in the way Schwab and Vanguard are. Retail investors can open direct BlackRock fund accounts, but BlackRock does not offer self-directed brokerage accounts for do-it-yourself stock trading.
A mutual-fund account at BlackRock can be opened online or with
this hard-copy application. The account can be opened in several registrations, including joint, individual, custodial, and trust. For an IRA or 529 setup,
this paper application should be used instead.
In these fund accounts, investors can buy BlackRock mutual funds. Other investment vehicles, such as individual stocks or bonds, are not available in the account, and outside fund families are not offered either. As a result, BlackRock trails the other two firms here for retail investors. It is also important to note that BlackRock funds can carry sales loads and ongoing fund expenses, so the account is not a no-fee structure in the broad sense.
Where BlackRock really stands out is asset management. The company owns the iShares brand, one of the most important ETF families in the world, with trillions of dollars in assets under management.
Some BlackRock funds can be traded at Schwab and Vanguard, and of course, iShares ETFs are easy to trade at most major brokerage firms.
For investment advice, BlackRock once again does not provide very much for ordinary retail investors. The company has no retail branch network and does not function like a traditional full-service brokerage for everyday investors.
BlackRock does, however, offer a great deal to institutional clients. For example, it provides risk-management services and develops Aladdin software, which is widely used for institutional asset management. The company also has a large offering of alternative investments, such as private equity and real estate.
Best Investment Firms Judgment
All three investment firms shown here have strengths and weaknesses. Clearly, BlackRock is not the ideal choice for most mom-and-pop investors. Vanguard is a much better fit for ordinary investors, while Schwab is a strong choice for both beginners and active traders thanks to thinkorswim. Institutions, meanwhile, may want to consider BlackRock for its higher-end services.
Updated on 4/14/2026.
Continue Reading