The 5 Biggest Financial Advisory Firms in the U.S.

Merrill Lynch, Morgan Stanley, Edward Jones, LPL Financial, and Wells Fargo Advisors are the largest advisory firms by the number of investment advisers registered with the U.S. Securities and Exchange Commission (SEC). They also hold a vast amount of financial advising assets for non-high-net-worth-individuals (HNWIs) in the U.S. These companies are the biggest in the industry for different reasons, whether it be low fees, staying power from being in business for a century or more, or growth through mergers and acquisitions.

Choosing a financial advisory firm can be difficult, as there are thousands to wade through. Many have specific strengths and offer different ways to invest one’s hard-earned money. It’s always worth researching to know which suits your needs and risks best, but choosing some of the largest financial advisory firms can often be a good option.

1. Merrill Lynch & Co.

Formally named Merrill Lynch, Pierce, Fenner & Smith Inc., Merrill is a Bank of America (BAC) subsidiary based in New York City. Founded by Charles E. Merrill in 1914, Merrill Lynch & Co. has long been an iconic U.S. financial institution. Since its acquisition by Bank of America after the 2007-to-2008 financial crisis, it has become known simply as “Merrill” and operates as Bank of America’s wealth management.

Merrill is a behemoth with over 26,000 licensed advisers, over 27,000 registered stock brokers, and $1.2 trillion in AUM, as reported to the SEC. About 22% of those assets come from regular investors, with another two-thirds from HNWIs.

In recent years, like other major firms in the industry covered here, Merrill has faced attrition, with advisers leaving to start their own firms or to work for smaller rivals. It lost over 1,700 advisers in 2021 and 2022, though it’s slowed the number, leaving with only about 450 doing so in 2023. The exodus has been driven by advisers seeking prospects with competitors offering higher revenue percentages, equity ownership, and the chance to build their own businesses.

The rise of aggregators and private-equity-backed buyers in wealth management has also helped fuel this trend. Aggregators buy or partner with independent financial advisory practices or registered investment advisers (RIAs). More favorable market conditions, as in 2023, have typically helped Merrill retain its talent, given increased client balances and bonus potential.

2. Morgan Stanley

Morgan Stanley (MS) is another titan in finance, with roots stretching back to 1935 when the firm was founded in New York City. Over the decades, it has evolved into one of the most influential investment banks and wealth management firms globally.

The firm’s operations cover three main areas: institutional securities, wealth management, and investment management. Through these divisions, Morgan Stanley has a broad clientele, from large corporations and governments to institutions and individual investors. Its reach extends far beyond American shores, with a presence in over 40 countries, cementing its status as a truly global enterprise.

Morgan Stanley has almost 23,000 registered advisers, more than 26,000 registered representatives (stock brokers), and serves over 2.3 million retail investor accounts, accounting for over $925 billion or about two-thirds of its total registered AUM.

In recent years, Morgan Stanley has pursued strategic acquisitions to broaden its capabilities and market reach. Notable among these are the purchases of E*TRADE in 2020, which significantly boosted its retail trading capabilities, and Eaton Vance in 2021, enhancing its asset management offerings.

3. Edward Jones

Edward Jones, a name synonymous with personalized financial advice, was founded in 1922 in St. Louis, Missouri. At the heart of Edward Jones’ business model is its vast network of branch offices, typically staffed by a single financial advisor and a branch office administrator. This approach allows the firm to maintain a presence in small towns and suburban communities across the nation, bringing financial services to areas often overlooked by larger Wall Street firms.

As of 2024, Edward Jones has over 15,000 branch locations throughout the United States and Canada, making it among the most expansive entities from any sector in North America. It also has more than 20,000 registered advisers.

The company’s service offerings cover a wide range of financial needs, including investment advice, retirement planning, education savings, and insurance products. Edward Jones is known for its conservative investment approach, often favoring long-term strategies and emphasizing the importance of diversification.

For more on Edward Jones, listen to “A Century-Old Financial Advice Business Faces the Future,” an episode of The Investopedia Express podcast with Caleb Silver and Edward Jones CEO Penny Pennington.

4. LPL FINANCIAL LLC

LPL Financial LLC (LPLA), usually simply called LPL, is a powerhouse in the independent broker-dealer landscape, carving out a growing position in the financial services industry since its founding in 1989.Based in Boston, San Diego, Austin, Texas, and Fort Mill, South Carolina, LPL has become the largest independent broker-dealer in the U.S., supporting thousands of independent financial advisers nationwide.

LPL operates on a model different from that of traditional wirehouses or banks. Rather than employing financial advisers directly, LPL provides a platform and support services for independent advisers and financial institutions. This approach allows advisers to run their own practices while leveraging LPL’s extensive resources, technology, and regulatory support.

One of LPL’s strengths has been its technology infrastructure. The company has invested heavily in developing and acquiring financial technology platforms for its advisers. It employs thousands directly, with over 18,000 IARs and the second-most number of stock brokers (over 27,500) behind Merrill. Its direct services focus on wealth management, with about 63% of its registered AUM from HNWIs.

For more on LPL, listen to “Breaking Down Walls of Worry with LPL’s Ryan Detrick,” an episode of The Investopedia Express podcast with Caleb Silver and the firm’s chief marketing strategist.

5. Wells Fargo & Company

Wells Fargo & Company (WFC) has roots stretching back to 1852 during the California Gold Rush and the merger of two then-large regional banks. Based in San Francisco, California, the company has evolved from a banking and express delivery business to become a diversified financial services giant, serving about one in three American households and more than 10% of small businesses in the U.S.

Among the four major banks in the U.S., Wells Fargo offers a broad spectrum of financial services. Its primary business lines include consumer banking, commercial banking, investment banking, wealth and investment management, and payments. The company’s vast network of brick-and-mortar locations, numbering over 5,600 branches and 11,000 ATMs, gives it a significant physical presence across the country, complementing its growing digital banking services.

Wells Fargo’s wealth management arm, which includes Wells Fargo Advisors, is a major player in the financial advisory space. The division offers a range of services from full-service brokerage to robo-advisory platforms, catering to a diverse clientele from mass-market consumers to HNWIs and institutions.

The company employs almost 20,000 licensed stock brokers and about 16,000 IARs. Much of its investment business is in wealth management, with about 70% of its $560 billion in AUM from HNWIs and the rest from retail investors.

The Bottom Line

Wealth management and financial advisory services in the U.S. are dominated by a mix of traditional wirehouses and independent firms. Merrill Lynch and Morgan Stanley, as part of larger banking institutions, offer comprehensive financial services but have faced advisor attrition as some seek greater independence. Edward Jones stands out with its extensive network of single-advisor offices in smaller communities, focusing on services to individual investors. LPL Financial has carved out a niche as the largest independent broker-dealer, providing a platform for advisers to run their own practices while accessing institutional-level support.

Wells Fargo Advisors rounds out the top five, and each firm has been grappling with industrywide challenges, including the shift toward fee-based models, the hypercompetitive online landscape, and continual technological changes in the space. The competition for both clients and talented advisers remains fierce, with each firm leveraging its resources to maintain market share and retain its top advisers.