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Is JP Morgan Right For You?
If you’re looking for low-cost investing options, don’t overlook JP Morgan’s online investing. The brokerage operates like the investment division of JP Morgan Securities, LLC, and it offers several inexpensive investment choices for active traders and passive investors.
It includes two investment options: JP Morgan Self-Directed Investing and JP Morgan Automated Investing. JP Morgan Self-Directed Investing operates as a
, and JP Morgan Automated Investing offers managed portfolios.
JP Morgan’s online investing is convenient for existing Chase Bank customers who want to try their luck on the stock market. This does not mean that you must have a Chase bank account to register; brokerage simply makes it easy to connect all of your Chase accounts in one place.
Today, Chase offers more than 4,300 branches and 16,000 ATMs in the United States.
Unsure if JP Morgan is right for you? Read on to see how it compares to similar investment platforms.
How does JP Morgan compare?
Online Investing JP Morgan, E * TRADE, and SoFi all offer self-directed investing, automated investing, and various investment choices. However, platforms differ when it comes to fees and investment types.
JP Morgan and E * TRADE both offer commission-free stocks, ETFs, and options, but SoFi only offers commission-free stocks and ETFs. SoFi makes up for this, however, with cost-free automated investing and its selection of cryptocurrencies.
On the automated investing side, JP Morgan charges more advisory fees, but it offers a wider range of investment types.
Ways to invest with JP Morgan
Self-directed brokerage accounts
JP Morgan Self-Directed Investing allows you to trade without paying commissions for stocks, ETFs, options, and mutual funds. You can get started without having to meet a minimum initial investment requirement, and you’ll be able to trade with general investment accounts, traditional IRAs, and Roth IRAs.
You will only pay a fee for options contracts and secondary corporate bonds, municipal bonds and traded CDs. JP Morgan charges $ 0.65 per options contract, while bonds and CDs cost $ 10 per trade, plus an additional $ 1 for each bond greater than 10 bonds.
The Chase mobile app also lets you take your investments with you wherever you go. Additionally, existing Chase customers can access both their investment and bank accounts under one roof.
Automated investment management
You can also sign up for JP Morgan Automated Investing if you want your portfolio to be professionally managed. This account is ideal for those who love robo-advice, but it also offers a unique feature: a team of investment specialists.
JP Morgan uses both automated investing technology and human specialists to keep your portfolio on track. So you won’t have to worry about trading or rebalancing your portfolio like you would with a self-directed account.
Just be prepared to pay a little more for JP Morgan Automated Investing. You’ll need a minimum of $ 500 to get started, and you’ll need to pay an annual advisory fee of 0.35%. Its automated account also includes a Portfolio Builder feature that helps you find the investments that best match your risk tolerance and short- or long-term savings goals. However, you will need at least $ 2,500 for this feature.
The platform mainly uses four portfolios: conservative, moderate, growth and aggressive. Each portfolio uses a different combination of JP Morgan ETFs.
If you are looking for more personalized financial advice from a human professional, you can sign up for JP Morgan Advisors.
JP Morgan Self-Directed Investing and JP Morgan Automated Investing offer investment options for Traditional IRAs and Roth IRAs. With the self-directed investment option, you can open either retirement account with no minimum requirements. But you’ll need at least $ 500 to set up a Traditional or Roth Automated IRA with JP Morgan Automated Investing.
Additionally, it should be noted that JP Morgan’s online investments do not offer IRA, SEP IRA, and SIMPLE IRA rollovers. If you are looking for one of these accounts or other retirement plans, you should consider other brokerage firms.
Is JP Morgan trustworthy?
JP Morgan Chase & Co. currently has an A- rating with the Better Business Bureau. Given that the BBB rates companies using an A + to F range, this suggests that JP Morgan’s online investing exhibits trustworthy business practices and interacts well with its clients.
While ratings are not the same for all companies, the BBB says it rates all companies by looking at information on licenses, advertising, government actions, and more. JP Morgan Chase has closed more than 1,400 complaints in the past 12 months, according to BBB data.
JP Morgan’s online investment has not been the subject of any major legal action. But in 2020, the Commodity Futures Trading Commission forced its parent company, JP Morgan Chase, to pay a fine of $ 920 million to settle the claims of market manipulation.