JP Morgan breaks broker hearts with free trading app
JP Morgan is launching an investing app for consumers next week, with free or discounted trades, a portfolio-building tool and free access to the bank’s stock research, reports CNBC. Big news.
The move dealt a blow to online brokerage firms including Charles Schwab, TD Ameritrade and E-Trade. Their shares fell as a result of the announcement.
JP Morgan’s app or website users can get upwards of 100 trades for free in the first year on the upcoming platform, which will have the name of You Invest. If they exceed that amount, they’ll be charged per trade – still less than most rivals.
The app has been in the works for over two years, and it’s a big jump for consumers wanting to access stock trading, and no less than from the hands of the largest US bank.
“There are customers out there who may not want to trust their credentials or their money to an app of the month,” says Jed Laskowitz, a JP Morgan exec. “We’re thinking about what’s right for our customers, helping them get invested, and stay invested and diversified.”
It is understood that CEO Jamie Dimon has been considering a similar move since 2016, inspired by Amazon’s large offering of free services.
Kelli Keough, global head of digital wealth management, says the new app is targeting investors outside of the reach of JP Morgan, and millennials – of course.
Signing up through the bank’s app can be done in three minutes, and moving money between Chase accounts happens instantaneously.