RSS Facebook Twitter LinkedIn

Featured Advisor

Ed Meek
CEO/Investment Advisor

Edge Portfolio Management


State: IL

At Edge, a low client to advisor ratio allows for personal and customized service for each individual.  Our goal is to work as a team for each client to provide not only portfolio management but wealth coordination and financial planning.  We make every effort to have frequent communication with our clients and to provide timely response to calls and emails.  I also enjoy spending time with my wife and three kids, playing and following basketball, playing golf, and participating as an advisory board member for Breakthrough Urban Ministries.

Click to see the full profile

Share |

Investors Pick The Best Providers

Even Fidelity, tops as the best provider in a Spectrem study, works with only 15 percent of investors, as the rest are spread out among a long list of companies.

| BY Kent McDill

The competition among financial providers in the United States is fierce, and there are a great number of providers involved.

When you turn on any financial information programming, like on CNBC or Fox Business, you see a constant barrage of commercials from companies trying to attract business. You could lose count trying to keep count of the number of companies offering their services to investors.

Spectrem’s third-quarter report Advisor Relationships and Changing Advice Requirements indicates the wide array of providers affluent investors work with. While there are a few that manage affairs with 5 percent or more of the affluent investor market, there are dozens that are selected as the top provider for only a small percentage of investors.

The Spectrem report segments investors into three categories of wealth: Mass Affluent (with a net worth between $100,000 and $1 million, not including primary residence), Millionaire (with a net worth between $1 million and $5 million) and Ultra High Net Worth (with a net worth between $5 million and $25 million).

Those investors were asked to name their primary provider and among all three segments Fidelity came out on top for 2015, with 16 percent of Mass Affluent and 15 percent of both Millionaire and UHNW investors.

Interestingly, Charles Schwab ranks second among Millionaires and UHNW investors, with 9 and 14 percent each, while Vanguard is second among Mass Affluent investors with 8 percent.

The research indicates that UHNW investors are more centralized in terms of the providers they use. Fidelity, Charles Schwab and Vanguard capture 40 percent of the UHNW investors, while the top three providers in the other two segments have between 30-33 percent of the investors.

It is also telling that some of the percentages change over time, especially among UHNW investors. Only two years ago, Charles Schwab had 18 percent of the UHNW investors and Fidelity only had 9 percent. The 2015 numbers show Fidelity with 15 percent and Schwab with 14 percent.

Looking at the Millionaire investors, 14 different providers are working with at least 2 percent of investors and the 14 total 69 percent of the market. Thirty-one percent chose “other’’, and those other providers have less than 2 percent each of the market.

Again, among UNNW investors, the list is shorter. Ten providers have at least 2 percent of the market and together have captured 72 percent of all UHNW investors.

About the Author

Kent McDill

Kent McDill is a staff writer for Millionaire Corner. McDill spent 30 years as a sports writer, working for United Press International and the Daily Herald of Arlington Heights, Ill. From 1988-1999, he covered the Chicago Bulls for the Daily Herald, traveling with them every day through the nine-month season. He also covered the Bulls for UPI from 1985-88, and currently covers the team for He has written two books on the Bulls, including the new title “100 Things Bulls Fans Should Know And Do Before They Die’, published by Triumph Books. In August 2013, his new book “100 Things Bears Fans Should Know And Do Before They Die” gets published.

In 2008, he resigned from the Herald and became a freelance writer. The Herald hired him to write business features and speeches for the Daily Herald Business Conferences and Awards presentations.

McDill also writes a monthly parenting column for the Herald’s Suburban Parent magazine.

McDill is the father of four children, and an active fan of soccer, Jimmy  Buffett and all things Disney.