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Capital One Investing Assets Under Management (AUM)


Capital One Investing total assets under management. Capital One Investing AUM for 2017: client assets, brokerage accounts, mutual funds.



Capital One Investing Assets Under Management


Capital One Investing is part of the Capital One Financial Corporation, a large financial holding company. This financial giant is one of the largest financial holding companies in the United States. Unlike other banks in the U.S., the Capital One Financial Corporation is 100% domestically owned


Quantitative Analysis


Capital One ranks 7th in the country judged by deposit totals and assets, according to the Federal Reserve Board. The company has 698 branches in the U.S. with zero foreign branches. At these brick-and-mortar locations, there are many financial advisors who are available to assist investors with financial planning and trading advice.

Capital One Financial generates more than $25 billion in revenue each year. Much of this comes from its credit card division. The company also operates a robust auto loan division, and of course has a large banking department that offers checking, savings, and money market deposit accounts.

The $25 billion in revenue produces roughly $6 billion in gross profit, before considering interest and taxes. When these costs are factored in, the net income is about $4 billion annually.


The Capital One Financial balance sheet shows a shareholders’ equity of roughly $48 billion. This figure also makes the company one of the largest financial conglomerates in the United States. And Capital One has over 47,000 employees.

The financial holding company has $357 billion in assets as of the most recent count. Capital One Investing, the brokerage arm of Capital One, will have fewer assets than this amount. While the broker-dealer does not publish or release its exact figures, it is safe to assume that the brokerage unit of the company accounts for far less of the total than the banking unit does.


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Comparison


Although Fidelity isn’t a financial holding company like Capital One, it nevertheless provides a fruitful comparison. Fidelity has $5.7 trillion in client assets. This far dwarfs Capital One’s grand total of $357 billion. As previously mentioned, Capital One Investing’s total assets must be smaller than this amount. Because Fidelity does not operate banking or other significant financial activities, the company’s asset base is almost exclusively in brokerage services.

Unlike Capital One Investing, Fidelity manages its own line of mutual funds. These products hold almost $2 trillion of the company’s $5.7 trillion total. So Fidelity mutual funds have more assets than the entire Capital One Financial holding company. Fidelity’s self-directed accounts make up $3.6 trillion of value. This figure is also much larger than Capital One’s entire portfolio.

Fidelity’s massive asset base is actually managed by fewer people. The broker has slightly more than 45,000 employees, compared to Capital One’s 47,000.

Ally Invest is a small broker by industry standards. It holds approximately $4.7 billion in client assets, which is far smaller than the Capital One Financial Corporation’s total. Looking at Capital One’s financial portfolio, it is likely that the company’s brokerage arm is close in size to Ally Invest.


Capital One Automatic Investment Plan


Capital One Investing, formerly known as ShareBuilder, is an online brokerage company operated by the U.S. banking giant Capital One. It may be deemed wimpy by those who have accounts at ThinkOrSwim (review), but the firm holds its own to the more systematic and methodical investor. The brokerage’s claim to fame is its low cost automatic stock purchase plan - this is the real benefit of a company's account.

A Capital One Investing client can program his brokerage account to automatically buy a predetermined dollar amount of a stock or ETF on a weekly basis. The idea is simple: as long as there is enough free cash in the account on a Monday afternoon, the firm will make a Buy order of one or more stocks or ETFs on Tuesday.

Since the dollar amount of each purchase is pre-set, the number of shares of the equity or ETF purchased will be unknown until after the Buy order is made. The really interesting thing about Capital One Investing’s automatic stock purchase plan is that the account is set to make fractional share purchases. In other words, if a client has his automatic stock purchase set to buy $30 of iShares Silver Trust (SLV – NYSE) and $50 of SPDR Gold Trust (GLD – NYSE) each time, Capital One Investing’s systems will allow a fractional purchase of SLV and GLD. In this case the client might buy 1.09 shares of SLV if the share price of SLV is $27.50, while on the next weekly buy in he might buy only .95 shares of GLD if the price of SLV is $31.57 that day. The same is true for a higher priced stock or ETF such as GLD. In this case the client might buy only 0.3 shares of GLD if the price of GLD were to be $166.65/share. At the same time the client might buy 0.285 shares of GLD if the price of GLD moved to $175.46 per share the next week.

Capital One Investing will charge the client $3.95 for each standing Automatic Purchase that it executes. This charge is subtracted from the amount of the standing order, which can lead the first time user to some very confusing and disappointing buy ins. If the client that wishes to buy into SLV at $30 per week will actually have to list his dollar value buy in amount at $33.95. The trading platform will then take the $33.95, subtract the transaction fee of $3.95, and invest the remaining $30 into a fractional share of SLV.


Capital One Investing Review


Real time orders to invest in stocks and ETFs cost the client $6.95, which is a bit expensive for a bare bones trading platform. If a client wants to buy/sell securities real time, it would be best to open an account at a broker such as Ally Invest or TradeStation, companies well-known for their deep discount prices.

Capital One Investing does not have minimum balance requirements, account inactivity or maintenance fees (this includes all retirement investment accounts). Minimum to open cash account is $0; for margin account it's $2,000. Mutual fund transactions cost $19.95. In addition to traditional brokerage accounts, Capital One Investing also offers IRAs, Educational Savings Accounts and Custodial Accounts. The firm is a member of the FINRA and SIPC which means that client accounts are insured in case of brokerage failure for up to $500,000.

Capital One Investing clients can download apps that give them on-demand look at the current status of their portfolio, lets them execute trades, and deposit funds. The apps are available for iOS, Android and BlackBerry devices.
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Customer Service


Capital One Investing's customer service department is available Monday through Friday from 8:00 AM to 11:00 PM EST. If a client ever has any questions, he or she may reach an agent by phone at 1-800-747-2537. Alternatively, they can use the live chat feature located on the website's Contact Us tab.


Capital One Investment Account Review Summary


For anyone looking to invest money automatically, or only wanting to invest in a simple mix of mutual funds, ETFs and stocks, Capital One Investing is a good company to open an account. For a more advanced or active investors there is a bunch of better options to consider.


Updated on 9/16/2017.






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