The following table shows the top 15 broker-dealers based on their assets under management in 2018. These are the firms that play an important role in helping U.S. government-issued securities to be distributed from the primary brokers that contract directly with the Federal Reserve Bank all the way down the investment chain to small retail investors as well as larger, commercial purchasers. Whereas the very large brokers that trade directly with the Federal Reserve Bank are called “primary dealers,” these smaller firms are typically referred to as “secondary dealers.”
| Company | Headquarters | Assets Under Mgmt ($B) | Market Capitalization ($M) | LTM Revenue ($M) | Trailing P/E |
|---|---|---|---|---|---|
| Fidelity Investments | USA-MA-Boston | $6,850 | NA | NA | NA |
| Charles Schwab | USA-CA-San Francisco | $1,850 | $63,066 | $9,500 | 20.2x |
| Wells Fargo Advisors | USA-CA-San Francisco | $1,600 | $230,373 | $85,920 | 11.3x |
| TD Ameritrade | USA-NE-Omaha | $1,300 | $30,515 | $5,340 | 20.0x |
| Edward Jones | USA-MO-Des Peres | $1,100 | NA | NA | NA |
| Raymond James Financial | USA-FL-Petersburg | $754 | $11,139 | $7,270 | 13.5x |
| AXA Advisors | EU-France-Paris | $665 | $47,909 | $135,656 | 7.9x |
| LPL Financial | USA-MA-Boston | $669 | $6,029 | $1,720 | 16.1x |
| Ameriprise Financial | USA-MN-Minneapolis | $485 | $16,480 | $12,810 | 9.9x |
| Voya | USA-NY-New York | $209 | $6,893 | $8,520 | NA |
| Commonwealth Financial Network | USA-MA-Waltham | $156 | NA | NA | NA |
| Northwestern Mutual Inv. Services | USA-WI-Milwaukee | $132 | NA | NA | NA |
| Cambridge Investment Research | USA-IA-Fairfield | $99 | NA | NA | NA |
| Securities America | USA-NE-La Vista | $86 | NA | NA | NA |
| Waddell & Reed | USA-KS-Overland Park | $80 | $1,378 | $12,810 | 7.7x |
Note:
Financial data shown represent the valuation and revenue of the broker-dealers’ parent company, which may be engaged in other lines of business besides the brokerage of government securities.
LTM stands for last twelve months.
Sources:
Investopedia
Financial data from Morningstar Inc., as of January 17, 2019