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.
“free” with a catch
What else would you expect from JP Morgan?
Here’s a few screenshots of the app from the video in that story -
It looks like one of the high street bank’s apps to me
Personally, I think they’re being very upfront with their pricing structure (freemium & Amazon Prime inspired).
We’d all be lying to ourselves if we didn’t think this was a compelling proposition, especially from one of the largest incumbent institutions in the world.
The saving grace for Freetrade investors is that the impact will mainly be in the USA to begin with (leaving U.K. & the EU unscathed).
JPMorgan’s entrenched status – half of all U.S. homes (about 60 million) do business with the bank – make it an obvious choice for those looking for new ways to invest, Laskowitz says.
I see substance over style which is the way it should be if both can’t be done (confident Freetrade can do both though).
Users can open a You Invest account in minutes and the service will tutor them in how to invest, with the bank’s equity research on about 1,200 stocks among the resources.
They’re right that this definitely isn’t going to help Robinhood but pricing isn’t their only differentiator either..
Hi guys, it appears that JP Morgan’s now about to launch a free trade platform. Any thoughts? Shares from public players who dropped trading fees (eg. Charles Schwab, E*Trade and TD Ameritrade) seem to be dropping on the back of the announcement.
I guess this was fairly predictable as those providers will presumably have to drop their prices in order to compete.
I think it’s a sign that they see Robinhood as a meaningful threat too
What’re your thoughts on this?
I’ve moved your post here as there’s been some discussion about this story already, I hope that’s ok!
I’m not too concerned so far - JPM seems to be looking into adding that feature to their Chase (retail bank) clients, so I’m hoping that will for now focus on the US.
Haven’t seen their product yet, but I would be surprised if their platform allows to invest from £1 also.
Good to have spotted a risk, and hope the Freetrade team iare aware and monitoring the situation (I’m sure Robinhood are rather nervous about it).
All the best,