Charles Schwab vs. J.P. Morgan Self-Directed Investing: Which Broker Is Right for You?

Today's investors have a full range of brokers from which to choose. However, no two brokers are alike or can fit the needs of every investor. Charles Schwab and J.P. Morgan Self-Directed Investing are the perfect examples. They each represent big names in investing, but are quite different when it comes to offerings.

In this overview of Charles Schwab vs. J.P. Morgan Self-Directed Investing, we examine each broker and compare the two. When you finish reading this comparison, you will have a clearer picture of what each offers, from fees to available investments. The goal is to gain a better understanding of which broker might be right for you.

Both brokers have done a good job of keeping costs low. For example, neither company charges a commission for trading stocks, ETFs, or options (although investors do pay $0.65 per options contract). Mutual funds are also available for purchase without a commission.

Charles Schwab and J.P. Morgan Self-Directed Investing do charge a fee for moving money out of your account, although Schwab's fee is $25 lower than J.P. Morgan's.

Neither Charles Schwab nor J.P. Morgan Self-Directed Investing offers direct access to crypto trading at this time, although that may be subject to change. Take a look at the following table, and you'll see that Schwab has J.P. Morgan beat when it comes to other investment options. Schwab gives investors the opportunity to trade fractional shares, futures, and currencies, while J.P. Morgan Self-Directed Investing does not.

And when it comes to mutual fund options, Charles Schwab also comes out on top, with nearly 17,000 to choose from, compared to J.P. Morgan Self-Directed Investing's "several thousand."

Simply put, Charles Schwab gives investors more to choose from. While both brokers provide traditional and Roth IRAs, only Charles Schwab offers other retirement options. You can open a custodial account at Schwab, but not at J.P. Morgan. The same is true if you want to open a joint tenant account.

For some, the majority of their investing begins online. Here, we're taking a closer look at what you can expect from Charles Schwab and J.P. Morgan Self-Directed Investing's mobile app and trading platforms.

Charles Schwab

Platform highlights

Charles Schwab's platform is another area in which the company shines. Its platform is designed to address the needs of investors, whether they're novice or experienced traders.

• StreetSmart Edge: Desktop-based platform featuring a customizable layout so you can show only what's important to you and how you invest.
• thinkorswim: Geared toward advanced investors, thinkorswim is especially good at helping investors take on options trades.
• Schwab Stock Slices: These are laid out to allow anyone (from novice to advanced traders) to buy and sell fractional shares of stock.
• Extensive research library: Easy-to-find research on just about any question a new investor may have.

Mobile app

Opinions regarding Schwab's mobile apps are both hot and cold. iOS users give it 4.8 out of 5 stars, but Android users rate the app 2.3.

J.P. Morgan Self-Directed Investing

Platform highlights

The most impressive feature of J.P. Morgan's platform is its portfolio builder. The broker refers to these tools as "portfolio construction tools." Regardless of what they're called, these tools could provide a real leg-up for investors.

The tools include a portfolio analysis, which gives you a fresh perspective on how well your portfolio is balanced. There's also an investment comparison tool that allows you to analyze investments instantly. Finally, there's a tool that builds hypothetical bond ladders, letting you see in advance what it would be like to build one of your own.

The fly in the ointment is that access to the portfolio builders requires a minimum investment of $2,500, leaving many young investors out in the cold.

Mobile app

Access to the account is available through the Chase Mobile® Bank & Invest app. iOS users give the app an excellent score of 4.8 out of 5 stars, and Android users offer a score of 4.4.

We like that J.P. Morgan Self-Directed Investing allows ordinary people without a ton of money a place to invest. However, to access the best features on the J.P. Morgan platform, investors must have at least $2,500 to get started.

On the other hand, Charles Schwab's platform has a wealth of features anyone can use without spending more money. Charles Schwab provides more investing opportunities and earned the highest ranking in overall customer satisfaction in the J.D. Power 2023 U.S. Full-Service Investor Satisfaction Study. These factors make it the clear winner.