Banking » Reviews » J.P. Morgan Self-Directed Investing Review 2023
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J.P. Morgan Self-Directed Investing Review 2023

While the J.P. Morgan Self-Directed Investing offers some crucial benefits for some investors, this is not for everyone. What about you?
Author: Josiah Mwangi
Josiah Mwangi

Writer, Contributor

Experience

Josiah Mwangi is a Certified Public Accountant and has an MBA in Finance. He has been writing for the Huff Post, Corporate Finance Insitute, Smarter.loans, and other top publications. In his free time, he goes hiking alongside his two German Shepherds

Review & Fact Check: Baruch Mann (Silvermann)

Baruch Mann (Silvermann)

Financial Expert, The Smart Investor CEO

Experience

Baruch Mann (Silvermann) is a financial expert and founder of The Smart Investor. Above all, he is passionate about teaching people how to manage their money and helping millions on their journey to a better financial future.
Author: Josiah Mwangi
Josiah Mwangi

Writer, Contributor

Experience

Josiah Mwangi is a Certified Public Accountant and has an MBA in Finance. He has been writing for the Huff Post, Corporate Finance Insitute, Smarter.loans, and other top publications. In his free time, he goes hiking alongside his two German Shepherds

Review & Fact Check: Baruch Mann (Silvermann)

Baruch Mann (Silvermann)

Financial Expert, The Smart Investor CEO

Experience

Baruch Mann (Silvermann) is a financial expert and founder of The Smart Investor. Above all, he is passionate about teaching people how to manage their money and helping millions on their journey to a better financial future.

We earn a commission from our partner links on this page. It doesn't affect the integrity of our unbiased, independent editorial staff. Transparency is a core value for us, read our advertiser disclosure and how we make money.

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With the runaway success of commission-free trade platforms, many bricks-and-mortar brokerages started to drop their rates. While there are many new online brokerages offering $0 trades, many investors prefer the reassurance of an established broker.

Charles Schwab was the first major brokerage to offer zero commission online trades, but many other traditional brokers have followed suit. Among the big-name brokers is J.P. Morgan, which is offering $0 trade commissions via its Self-Directed Investing app.

The J.P. Morgan Self Directed Investing platform is hosted online or via the Chase Mobile® App and is a great example of a high-value brokerage account with no fees per trade. It is easy to use and has minimal frills, which will appeal to newbies or more experienced investors, depending on your brokerage needs.

J.P. Morgan Self Directed investment has been designed to service long-term investors. It is an ideal option for those who already have ties to J.P. Morgan or Chase. If you are an existing Chase app customer, you can open an investment account with the tap of a few buttons.

The platform allows you to buy and sell stocks, bonds, mutual funds, and ETFs commission-free. There are also low-cost options available to buy and sell. You can use the app to maintain watchlists and investigate individual investment products.

While the platform may lack some of the bells and whistles of many other trading apps, it is streamlined and simple, with an old-school approach.

The Main Account Features You Should Know

J.P. Morgan Self Directed Investing has a number of excellent features that may appeal to you. These include:

Every customer can enjoy commission-free stock and ETF trading. Options have a $0.65 per contract fee. J.P. Morgan also doesn’t charge fees on mutual fund transactions. 

Although many brokers offer a selection of non transaction fee mutual funds, it is very unusual for brokers to provide fee-free trading on every mutual fund available to buy or sell on the platform..

 

Yes, J.P. Morgan Self-Directed Investing offer promotions for new customers – you can get up to $700 when you open and fund a J.P. Morgan Self-Directed Investing account with qualifying new money:

  • $700 when you fund with $250,000 or more
  • $325 when you fund with $100,000-$249,999
  • $150 when you fund with $25,000-$99,999
  • $50 when you fund with $10,000-$24,999

While you will need to have a minimum balance to access some platform features, there are no set account minimums to trade.

This means that you can buy and sell, even if you don’t maintain a balance on your trading account.

 

J.P. Morgan Self-Directed Investing can be hosted on the Chase Mobile® App.

This makes it easy to integrate with other J.P. Morgan Chase products, so it is convenient for Chase customers who want to manage all their financial accounts via one app.

If you have a $2,500+ balance, you can gain access to the platform’s Portfolio Builder tool. This allows you to see how certain ETFs or stocks would fit into your overall portfolio. This creates automation of some of the best aspects of MPT (Modern Portfolio Theory), to help investors achieve adequate diversification.

While many users will enjoy using the Chase Mobile® app to manage their J.P. Morgan Self Directed Investing app, you can also access the platform directly through the website. 

This may make it easier to connect your bank accounts or make trades if you’re not comfortable with a mobile interface.

The JO Morgan Investing platform allows you to open a standard brokerage account, but you can also open up a Traditional IRA or Roth IRA. 

However, there are no self employed retirement plan options and 529 college plans are only sold via J.P. Morgan financial professionals.

Potential Drawbacks

As with any financial product or service, there are some potential drawbacks of J.P. Morgan Self Directed Investing. These include:

While J.P. Morgan Self Directed Investing does offer stocks, bonds, mutual funds, ETFs, and options, that is the basic extent of the products on offer. 

If you want to trade in any investment types that are a little less common, such as foreign currency, crypto or futures, this is not the platform for you.

One of the most popular features for many online brokers is the ability to trade in fractional shares. This is appealing to those who don’t want to tie up thousands of dollars for just one high value share. 

With fractional shares, you can buy a slice of a share and some brokers even allow you to reinvest your dividends in fractional shares, so you can maximize your investment potential.

There are four types of J.P. Morgan Self Directed Investing accounts; individual taxable, joint taxable, Traditional IRA, and Roth IRA. Although this does cover a variety of investors, it does not offer more niche accounts such as 529 accounts, SEP IRAs, custodial accounts, estates, and trusts. 

So, if you’re happy with basic account types, you’ll be okay with this platform, otherwise, you’d need to look at alternatives such as Charles Schwab or Fidelity.

Since you need a $2,500+ balance to access this tool, it is likely to be unattainable for many new investors. Since this is the primary source of investment information and data on the mobile platform, it is a major drawback that is not available to everyone.

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Platform Fees

The fee structure is one of the most important factors when choosing a broker, and a significant draw of J.P. Morgan Self Directed Investing. The transparent fee structure makes it easy to know what costs will be involved in your trading activity. Trading stocks, mutual funds, and ETFs is commission free.

If you want to trade options, there is a $0.65 options contract fee. Bonds also incur a fee of $1 per bond, but there is a $10 minimum and a maximum cap of $270.

In addition to these trading fees and charges, there are some other expenses you may encounter during your regular trading activities. These include:

  • Third-party wire transfers: $25
  • Stop payments: $30
  • Returned check: $12
  • Broker-assisted trades: $25 to $30
  • ACAT Outgoing portfolio transfer: $75

Fortunately, there is no introductory period for the zero commission. This makes J.P. Morgan Self-Directed Investing an ideal stock trading platform for those who want to buy and hold individual stocks, ETFs, and other assets.

Trading Platform 

If you’re an existing Chase customer, you don’t need to create a new login for the J.P. Morgan Self-Directed trading platform. You can log in as usual to access Self Directed Investing accounts. You can research, trade, and manage investments from this platform and access any other of your Chase accounts, including your Chase bank accounts and Chase credit cards.

If you’re not already a Chase bank customer, you can still open a new Self Directed Investing account. You’ll need to provide your personal and employment information before choosing the type of account you wish to open. From this point, you can fund your account and start investing.

You can use the Portfolio Builder if you have a minimum balance of $2,500. This makes building a complete portfolio from scratch easy to do and less intimidating. To use this tool, you will need to take a short quiz. This will determine how your assets must be allocated according to your investing goals and risk tolerance. You can then use asset allocation as your framework when searching, comparing, and choosing investments.

J.P. Morgan Self-Directed Investing Mobile App Integration

The J.P. Morgan Self-Directed Investing trading experience is well-laid out within the Chase Mobile ® app, making it easy to use. You can easily find, research and trade. In fact, this app was named one of the best wealth management apps in the J.D Power 2021 customer satisfaction survey.

The platform is integrated into the Chase Mobile® app. So, if you already have this installed on your device, you don’t need to download any additional software. However, if you’re new to J.P. Morgan or Chase, you can find the app on Google Play and the Apple Store.

From the app, you can create watchlists and get basic financial statistics, charts, earning estimates, and a trade button for each stock listed.

A research tab also provides the latest market news and specific news for the stocks on your watchlist. You can also access J.P. Morgan economic commentary and research reports from the research tab.

You can also use pre-prepared screens or customized screens to search for stocks, ETFs, and mutual funds. You can define your own parameters to search through thousands of investments. When you click on a specific stock, ETF, or mutual fund, you can look through company highlights and the finer details.

Customer Experience

If you need to speak to someone about your Self Directed Investing account, there is a toll-free phone number available from 8 am to 9 pm (ET).

However, you can also receive in-person support via any Chase branch. Since over 4,700 Chase branches throughout the country, it is easy to access support, and you can schedule an appointment via the app or online.

Unfortunately, while accessing the customer support team is relatively straightforward, it doesn’t mean you will experience excellent customer service. Like most national service banks, Chase has a poor rating on Trustpilot of just 1.6 out of 5.

This may seem abysmal, but remember that many banking customers rank financial institutions harshly. You would need to scroll through the actual reviews to see if any red flags may dissuade you from using this platform.

J.P. Morgan Chase has an A- rating with the Better Business Bureau. Since the BBB logs formal complaints, it may provide more accurate insight into the level of customer service offered.

Bottom Line

Suppose you are searching for a basic brokerage account that can help you to build a portfolio and assist you in trading on your own. In that case, J.P. Morgan Self Directed Investing provides an affordable and relatively comprehensive option.

While the platform may not have all the bells and whistles of some other platforms, it has a straightforward, intuitive layout. Additionally, unlike many online brokerage platforms, you can access customer support via phone or at one of the thousands of Chase branches.

FAQs

Yes, J.P. Morgan Self-Directed Investing offers promotions for new customers – you can get up to $700 when you open and fund a J.P. Morgan Self-Directed Investing account.

The only way to invest in gold through the J.P. Morgan Self-Directed Investing platform is via ETFs. A gold ETF is an exchange-traded fund focusing on gold investments.

This creates an easy way to access exposure to gold without needing to store physical bars. Gold ETFs typically track either physical gold or companies related to gold.

JP Morgan Self Directed Investing offers two types of retirement accounts; Traditional IRAs and Roth IRAs. You need to select your preferred account type from the platform dashboard.

Once your IRA is opened, you can choose from a wide selection of investment products, including stocks, bonds, ETFs, and mutual funds. When you’re ready to withdraw from your IRA, the JP Morgan Chase team can assist you.

The J.P. Morgan Self-Directed Investing platform has smooth integration with Chase Mobile® app. If you’re familiar with the Chase platform, you should find it easy to get to grips with Self Directed Investing.

You can quickly pull your existing account information to accelerate sign-up and approval. You can then drop your investing account into your dashboard for easy access and quick movement of funds in and out of Chase accounts.

While there are no guarantees for inflation-proof investments, you can access stocks, bonds, ETFs, and mutual funds on the platform, which have historically performed at higher rates of returns.

Of course, you will need to perform your due diligence, selecting stocks and other products according to your investment strategies to maximize the returns and counteract the higher rates of inflation.

Unfortunately no. Currently, J.P. Morgan Self Directed Investing does not offer the possibility to buy or sell any cryptocurrencies. This means that if you are interested in crypto trading, you will need to look at other trading platforms that offer zero commission and facilitate crypto.

Alternatively, you could invest in products that track the prices of some cryptocurrencies, such as GBTC (Grayscale Bitcoin Trust.)

Disclaimer: Investment And Insurance Products Are: Not A Deposit • Not FDIC Insured • No Bank Guarantee • May Lose Value

Josiah Mwangi

Josiah Mwangi

Josiah Mwangi is a Certified Public Accountant and has an MBA in Finance. He has been writing for the Huff Post, Corporate Finance Insitute, Smarter.loans, and other top publications. In his free time, he goes hiking alongside his two German Shepherds
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