Chase bank is rolling out a digital investing service that comes bundled with free or discounted trades, a sophisticated portfolio-building tool and no-fee access to the bank’s stock research. Anyone who downloads J.P. Morgan’s mobile banking app or uses its website can get at least 100 free trades in the first year.
- J.P. Morgan’s new digital brokerage service comes with free trades, portfolio building tool and access to research.
- The bank’s new trading service will be available to its 47 million mobile or online users.
- All customers get 100 free stock or ETF trades in the first year.
- CEO Jamie Dimon hinted at this move in 2016, citing Amazon Prime as his inspiration.
This move from J.P. Morgan Chase comes a few years after Apps such as Robinhood have already attracted more than 5 million users and a $5.6 billion valuation.
This could be a threat to the current marketplaces as Chase is the the biggest U.S. bank and It already has financial ties with half of American households. More than 47 million people who already use the company’s banking app or website will gain access to the new service called “You Invest”.
The bank is known for their high fees such as charging $24.95 for online trades as recently as last year.
How to get Free Trades
Signing up through the bank’s app can be done in three minutes, and moving money between Chase accounts happens instantaneously. Users can also seamlessly fund their investments from outside accounts. You can actually see the offer inside the Chase Bank App on the left menu under J.P. Morgan. There is no minimum required to open an account.
All customers get 100 free stock or ETF trades in the first year, an offer that becomes permanent for those with Premier-level bank accounts, which require a combined $15,000 held at the bank.
Those with Chase Private Client, a higher account that typically requires at least $100,000 in holdings, get unlimited trades. The bank is currently considering adding other tiers that would incentivize people to pull money from other brokerages.
Users can construct diversified portfolios with an automated tool called portfolio builder by inputting their risk tolerance and objectives.
Compare to Popular Online Brokerages
The number of free trades a user has left is prominently displayed on the app. Most investors don’t typically need more than 100 trades a year, but if they exceed that amount, they’ll be charged $2.95 per trade, which is far cheaper than rivals E*Trade and Ameritrade.
TD Ameritrade and E*Trade charge $6.95 per trade. Charles Schwab charges $4.95 a trade. Although they do all offer free trades for a fixed amount of time for new clients who deposit enough money. Bank of America offers customers of its Merrill Edge service 30 free trades per month, but that perk begins at $50,000 in balances. Otherwise, trades cost $6.95.