J.P. Morgan Investing Review: Zero-Dollar Commissions and No Minimums

J.P. Morgan Self-Directed Investing allows unlimited trades with $0 commissions and no minimums, while J.P. Morgan Automated Investing offers robo-advisory services, albeit at a higher price than many competitors. Find out if this platform is a good fit with our full J.P. Morgan Investing review.

This broker is a good fit for: Investors who want both the versatility of a traditional brokerage account and the automation of a robo-advisor in one. Chase banking customers can also benefit by having all their accounts in one app.

How J.P. Morgan Investing works

J.P. Morgan offers both a self-directed investing account and an automated investing account (AKA robo-advisor) under one roof. Accountholders aren't required to open both accounts, but can choose to open one or both investing accounts on the same platform.

Top perks

J.P. Morgan Self-Directed Investing is one of our favorite brokerages. It ranks among the best brokers we've seen in these categories:

No minimum

With J.P. Morgan Self-Directed Investing, there's no minimum balance requirement for a trading account. You can start investing for the price of a single share of whatever stock or exchange-traded fund (ETF) you want to buy. However, the automated investing robo-advisory service has a $500 minimum initial deposit requirement.

Commission-free trading

J.P. Morgan's self-directed investing service offers $0 commissions on online and mobile stock, fixed income, options, and ETF trades.

No mutual fund commissions

J.P. Morgan Self-Directed Investing is one of the only brokers with $0 commissions on all mutual funds, not just on a select group of no-transaction-fee (NTF) funds. Rivals have mutual fund commissions for as much as $49.99, so this can be a big money saver and is a key differentiator for J.P. Morgan.

Robo-advisor and brokerage account in one

Clients with at least $500 in their accounts can take advantage of J.P. Morgan Automated Investing to help design an asset allocation for their risk tolerance and investment goals. This robo-advisor charges a 0.35% management fee. Combined with J.P. Morgan's traditional brokerage offerings, investors have an array of investment options to be as hands on or off as they prefer.

Links with Chase accounts

It can be convenient to have your bank accounts and brokerage assets with the same company, as it usually makes smoother money transfers. Plus, you can manage your Chase credit cards, bank accounts, and any other J.P. Morgan investment accounts all in the same place.

What could be improved

Lack of account types

Investors with J.P. Morgan can open individual and joint brokerage accounts, as well as traditional and Roth IRAs, which may be sufficient for most investors. However, if you want to open a SIMPLE IRA, SEP-IRA, trust, custodial account, solo 401(k), or any other specialized account type, you can't do it with J.P. Morgan.

Trading platform

J.P. Morgan primarily offers an app-based trading platform, which is simple to use but doesn't offer advanced trading tools, charts, or features that active traders may want. While the app is highly rated, many investors might prefer a broker with a more feature-rich platform.

Research

J.P. Morgan clients have access to J.P. Morgan stock research on more than 1,200 U.S. companies, but many rivals offer significantly more options.

Fractional shares

Many investment platforms offer the ability to buy and sell fractional shares of stocks and ETFs -- say, one-half of a share of Apple. J.P. Morgan, however, doesn't let you buy fractional shares, which can be a huge disappointment for investors who don't have much money to invest. 

High fees for robo-advisory services

J.P. Morgan's Automated Investing comes at a higher price than many competitors. While J.P. Morgan charges 0.35% for advisory services, many big-name robo-advisors charge less.

Like most online brokers, J.P. Morgan offers $0 commissions on online stock and ETF trades, in addition to fixed-income and options trading. (Options are still subject to a fee of $0.65 per contract.)

J.P. Morgan Self-Directed Investing commissions

A couple of notes. First, keep in mind that these commissions are for online trades. Commissions are significantly higher for representative-assisted trades made over the phone.

Second, note that J.P. Morgan offers a $0 mutual fund commission, which is virtually unheard of in the brokerage industry. Many competitors have thousands of no-transaction-fee funds available, but it's rare to see a flat $0 mutual fund commission for all transactions. It's worth mentioning that there are other costs involved with mutual fund investing, such as the ongoing expense ratios charged by each fund. Plus, some may have upfront sales charges or short-term redemption fees if you sell within 90 days. Even so, a $0 commission on all mutual fund trades can be a major money saver, especially if the funds you're interested in are not offered commission-free elsewhere.

It's also worth mentioning that like many brokers, J.P. Morgan offers a robo-advisory service for investors who'd rather not pick their own stocks, ETFs, and mutual funds. It will invest your money in an appropriate portfolio for you for an all-inclusive 0.35% annual management fee.

J.P. Morgan Automated Investing fee

Buying mutual funds is another key differentiator for J.P. Morgan. It's one of the only app-based trading platforms to offer the ability to buy and sell mutual funds. Plus, it's one of the only brokers of any kind with no mutual fund commissions whatsoever.

Many rivals offer large numbers of funds (even thousands) that trade with no transaction fees. These are known as NTF funds. However, if the fund you want to buy or sell isn't on the broker's NTF list, you'll pay a commission, and these can be as high as $49.99 among online brokers. Therefore, depending on what mutual funds you're buying, the commission-free mutual fund pricing structure offered by J.P. Morgan can be a very attractive feature.

Most investors won't encounter any fees when using J.P. Morgan Self-Directed Investing Platform, unless they choose to use the robo-advisory service or are involved in options trading. However, there are a couple of fees that are worth mentioning:

• Account transfer fee: J.P. Morgan charges $75 to transfer any securities out of the account. For example, if you want to move your entire stock portfolio to another broker, it'll incur this fee. This does not apply to cash withdrawals, just transfers of securities.
• Broker-assisted trades: If you choose not to use the online portal and would prefer to place trades over the phone with the assistance of a broker, it'll cost $25 per stock trade and $20 per mutual fund investment.

J.P. Morgan is primarily an app-based trading platform. The Chase Mobile® App provides a way for J.P. Morgan Self-Directed Investing customers to trade on the go. And unlike some of the other leading app-based trading platforms, such as Robinhood and Webull, J.P. Morgan offers a range of investment products, including mutual funds and individual bonds.

J.P. Morgan Self-Directed Investing offers margin trading at varying rates, depending on how much you borrow. J.P. Morgan publishes these rates on its site.

Access to stock research can be a valuable tool for seasoned investors, as well as beginners. J.P. Morgan investment clients have access to J.P. Morgan's proprietary stock research, which covers more than 1,200 publicly traded companies.

• You want to start investing in stocks, ETFs, bonds, or mutual funds and don't have a ton of money to get started.
• You are a mutual fund investor who doesn't want to be limited to a broker's no-transaction-fee (NTF) fund list.
• You are a Chase credit card or banking customer, or you already have J.P. Morgan investment accounts.
• You don't need a fancy trading platform, access to extensive stock research, or an otherwise feature-rich experience.

INVESTMENT AND INSURANCE PRODUCTS ARE: NOT A DEPOSIT • NOT FDIC INSURED • NO BANK GUARANTEE • MAY LOSE VALUE

Compare J.P. Morgan Investing to other brokerages

Wondering how J.P. Morgan Investing stacks up to the competition? Check out our reviews:

At The Motley Fool Ascent, brokerages are rated on a scale of one to five stars. We primarily focus on fees, available assets, and account types; however, we also take into account features like research, education, tax-loss harvesting, and highly rated mobile apps. Our highest-rated brokerages generally include low fees, a diverse range of assets and account types, and useful platform features.

See our full methodology here: Ratings Methodology