Best Investment Companies
All investments come with risks, and determining which investment option is right depends on a consumer’s financial situation and goals. The investment company industry is comprised of a broad range of company types and services, so all investors can find someone to help them with the kinds of investments they want to make.
Compare Top Investment Company Reviews
Read 981 Reviews
Gold and silver metal and IRA options with a 30-day price guarantee and no minimum investment. A $160 annual fee includes storage, insurance, financial statements and 24/7 access online. Storage by Delaware Depository.
Read 1065 Reviews
Dean Graziosi is a rest estate investor who has written multiple books about real estate, finance and investing. He formed Dean Enterprises, LLC in 2002 to create and produce additional educational materials.
Read 134 Reviews
Marko Rubel is a Croatian immigrant and real estate expert. He runs Turn-Key systems, an educational company devoted to helping others earn money with real estate. He writes and speaks about investing.
Read 336 Reviews
Headquartered in Minneapolis, Ameriprise offers investment advice, wealth management, life insurance, annuities and retirement planning. It has been in business since 1894 and now manages more than $750 billion in assets.
Read 230 Reviews
TD Ameritrade has been in business since 1975 with headquarters in Nebraska and branches in 33 states. It offers financial and investment products for both self-directed investors and those who want investment advice.
Read 519 Reviews
Established in 1946, Fidelity offers many investment products, including online U.S. and international trading. The company is headquartered in Boston and has over 190 branch offices across the country.
|Charles Schwab & Co.|
Read 240 Reviews
Charles Schwab has been in business since 1973. The company offers extensive financial and investing services, including online trading, managed investment and retirement accounts, banking and credit cards.
Read 367 Reviews
E*TRADE provides a variety of financial services. Established in 1982, E*TRADE has been in the online trading industry almost since the company’s inception. It is headquartered in New York City with offices in 17 states.
Read 113 Reviews
Edward Jones Investments is a company that was founded in Des Peres, Missouri in 1922. The company offers financial advisers to help clients invest their money smartly.
|Merrill-Lynch||Read 292 Reviews|
Merrill-Lynch was founded in 1914 and is headquartered in New York. The company offers clients financial advice about managing existing money and investing for the future. Advice is based around clients’ priorities.
Types of investments
Stocks, bonds and options
Stocks, bonds and options are all types of securities. A security is simply something that shows partial-ownership, equity or a creditor’s relationships with a company or the government. If you buy individual stocks or invest in a mutual fund that includes stocks and bonds, you’re investing in securities. Most investment firms offer securities.
You can invest in real estate by purchasing property yourself or by investing money with a real estate investing company. Most of these companies operate Real Estate Investment Trusts (REITs), which work much like a mutual fund in that your money is combined with other investors’ money to make a larger purchase than any of you could make individually. REITs are traded both on the stock market and through private investment companies.
Gold, silver and/or platinum are important parts of some portfolios. If you’re interested in purchasing gold and silver, you can purchase exchange-traded funds (ETFs) or futures, which make it possible to trade precious metals on the New York stock exchange. You can also order coins or bars and keep the metal in your possession. Some investment companies offer certificates, much like bank Certificate of Deposits (CDs), which allow you to own bullion without possessing it.
Hedge funds are similar to mutual funds in that many investors’ funds are combined and profits and losses are shared among the group. However, these investments use more speculative practices than mutual funds. The SEC and state regulatory agencies do not regulate hedge funds in the same ways they regulate mutual funds, and investors do not have as many legal protections when investing money in hedge funds. Regulatory agencies have issued warnings to investors due to the complexity and significant risk involved in hedge funds.
How to choose an investment company
When someone is giving you investing advice, it is important that you trust them. Many factors can help you determine whether or not the individual advisor or firm is trustworthy.
- Regulatory registration: Ask whether the investment firm or individual advisor is registered with the Securities Exchange Commission (SEC), Financial Industry Regulatory Authority (FINRA), the Commodity Futures Trading Commission (CFTC) or the regulatory agency in your state. You can check their registration on the SEC, CFTC or FINRA websites. Visit the North American Securities Administrators Association website to find the state organization where an advisor would need to register.
- Fiduciary or suitability standards: Ask whether your advisor will be bound by fiduciary or suitability standards. Legally, registered investment advisors must either meet fiduciary or suitability standards. Under fiduciary standards, the advisor must advise you to make investments in your overall best interest, while suitability standards only require an advisor to recommend products that are suitable for your current financial portfolio. Following suitability standards, advisors might recommend products that will earn them more money, even if a different product might be best for you.
- SIPC member: If you’re investing in the stock market, choose a firm or agent that is a member of the Securities Investment Protection Corporation (SIPC). The SIPC insures that consumer assets, up to $500,000, will be protected if the firm goes out of business and investor assets are missing. Note that the SIPC does not protect investors from losses due to market changes.
- SIPC member: Not all types of investments or investment advisors are eligible to register with FINRA or the SEC or to be a member of the SIPC. If you’re investing in products not regulated by those organizations, consider how long the investment company of agent has been in business. A long history can indicate how reputable and stable the firm is.
- Common sense: It’s important to use common sense when investing. If someone offers an investment that seems too good to be true, it probably is. Trust your judgment, and don’t give money to individuals or businesses without thoroughly researching their qualifications and the kind of investments they’re recommending.
Investment companies make money in a variety of ways. To ensure that you aren’t overpaying for services and to verify that your advisors aren’t recommending products only for their profit, make sure you understand all the fees and costs associated with your account.
- Account fees: Some accounts charge a fee every month, quarter or year. This fee won’t change based on the number of transactions you make. Instead, it is based on the value of your investment account. The more money you invest, the larger fee you’ll pay.
- Flat fees: Some companies charge a fee for every transaction. These flat fees are straightforward and generally easy to understand. However, you may end up paying more in flat fees than you would if you paid an account fee. These fees are not based on the amount of money you’re investing.
- Commission: Some flat fees may be called commissions. Your investment agent may also earn a commission from the company when they sell particular products. Although this practice won’t cost you any money, agents who follow suitability standards may recommend products based on their potential income instead of what is best for you.
- Seminar fees: Some investment companies only offer advice on how to invest; they do not actually facilitate any investments. These companies or individuals often make money by charging investors to attend a seminar or pay an education fee. You pay for their advice like you’d pay to attend a class.
Philosophy and fit
It is important to find an investment company with agents who understand your goals and are accustomed to working with investors like you.
- Minimum investments: One of the first questions you should ask is what minimum investment is required. You can’t work with a company that requires a larger investment than you’re willing to make.
- Proactive recommendations: Ask how and when advisors make changes to your portfolio. Look for a company that will make recommendations before a change instead of being reactive to changes in the market or changes in your financial situation.
- Investor involvement: Before choosing a firm, think about how involved you want to be in investing. If you just want to deposit money into an account and have someone else do all the investing work, look for a full service company that has professional brokers to assess your financial situation and goals and then make the best investments for you. If you want to be more involved, you can choose a company that offers less professional advice, which may result in lower fees.
Investment company types
Traditional brokerage firms offer investors a wide variety of services and have professional brokers on staff to advise consumers. Those looking for a comprehensive investment portfolio should choose a full service, traditional investment company.
Focused investment type
Some investment companies focus on a single type of investment, like real estate, bitcoin IRAs or gold IRAs. Consumers who are especially interested in that commodity or are looking to expand their existing portfolio may wish to choose this type of company.
Workshops and seminars
Some investment companies focus on investor education instead of investments. Consumers who want to be very involved in their investments or simply want to learn more should consider attending workshops held by one of these companies.
Compare Top Investment Company Reviews
|Armando Montelongo Seminars|
Read 80 Reviews
Armando Montelongo is a real estate investor who appeared in several seasons of A&E’s show Flip This House. His company now offers seminars across the United States to teach others about the real estate market.
|Prudential Investment Management Services|
Read 29 Reviews
Prudential sells life insurance and annuities and offers investment management accounts for retirement and income goals. The company has been in business for more than 140 years and operates in over 40 countries.
Read 14 Reviews
Located in Palo Alto, Wealthfront is a company for automated investments that was founded in 2008. Wealthfront invests money for clients looking for advice and guidance, and they also offer sophisticated money management tools.
Read 17 Reviews
FutureAdvisor was founded in 2010 in San Francisco, CA. The company is dedicated to advising clients about investments, helping customers plan for retirement and educating about saving for college, among many other focuses.
Read 17 Reviews
American Century is a privately-held investment management company. It focuses solely on money management. The company was founded in 1958 and is headquartered in Kansas City, Missouri with other offices around the world.
Read 163 Reviews
Scottrade, established in 1980, offers products and tools to meet most investors’ needs, including self-managed trading accounts, retirement accounts and more. The company’s headquarters are in St. Louis.
Information in this guide is general in nature and is intended for informational purposes only; it is not legal, health, investment or tax advice. ConsumerAffairs.com makes no representation as to the accuracy of the information provided and assumes no liability for any damages or loss arising from its use.