Will Free Trading App Give JP Morgan Chase & Co. (NYSE:JPM) a Boost?

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Discount investment firms offering low trading fees and fee-less apps have become all the rage in the retail investing space over the past few years. Because there are so many cheap or free options out there, the space has become highly competitive and it feels as though hardly a day goes by where I don't see a banner ad splash across my computer screen informing me of the latest, greatest, and of course, cheapest way to trade. Perennial trend watchers JPMorgan Chase & Co. (NYSE:JPM) have of course taken notice of the trend and decided to try their hand at a free trading app, sort of.

JP Morgan & Chase Co. (NYSE:JPM) Free Trading App?

The app offers 100 free ETF or stock trades, and premium users are known as Premier-level users that have the 15,000 required in their Chase bank account. After the first 100 trades are used the fees are instituted at 2.49 USD per trade. This marks a pretty drastic change for  JPMorgan Chase & Co. (NYSE: JPM) who previously charged as much as 24.95 for each trade. Of course, that can start to burn a hole in your pocket rather quickly, especially if you are an active trader. Most of the company's direct competitors like TD Ameritrade Holding Corp. (NASDAQ:AMTD) and Bank of America Corp (NYSE:BAC) offer trades around 6.95 USD. Bank of America Corp (NYSE:BAC) also has a program offering 30 free trades a month but requires account holders to have 50,000 USD in their account balance. 

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The new app from  JPMorgan Chase & Co. (NYSE:JPM) will offer a number of services such as robo-advisors, stock research, and automated portfolio tools. CEO, Jamie Dimon, has directly cited Amazon.com, Inc. (NASDAQ:AMZN) service Amazon Prime as a direct influence on the apps design and function as early as 2016. Doing this, Dimon hopes to target people who are new to the world of investing but intimidated by both the cost of trades, and the overwhelming number of stocks available on the market. While some apps like Robinhood or WeBull are completely free to trade on  JPMorgan Chase & Co. (NYSE:JPM) hopes that the offering of tools and assistance will make their service more attractive in the end.

The announcement of the app, set to release next week, sent competitor stocks reeling and  JPMorgan Chase & Co. (NYSE:JPM) shares got a small bump, though it was short lived.  JPMorgan Chase & Co. (NYSE:JPM) stock is currently trading around  115 USD. For most of the year, the stock has traded sideways with the rest of the market, bouncing along it's ~100 USD support line. Investors in the stock are hoping that JPM stock can see a more significant and sustained markup once the app is officially released.

Comments (9)

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  • Sammy
  • ,  Contributor
  • 23 August 2018, 10:08 am

I use JPM for my co. bank, I use e*trade as my brokerage firm, no interest in changing based on this

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    Anybody have an opinion on the merits of investing in IBKR? I own it and considering adding on the dip. Thanks.

       0   Reply (0)   Follow(437)  

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      As much as I trade, 100 free stock trades is a big deal

         0   Reply (3)   Follow(437)  

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        there are a couple of options that are free always, but you don't get any assistance in trading so 100 is pretty fair. Also if you maintain the minimum balance all trades will be free.

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          What is the minimum balance?

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            15k for premier level

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              When will the stock roars? Sleeping lion.

                 0   Reply (0)   Follow(437)  

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                • John R
                • ,  Contributor
                • 23 August 2018, 10:08 am

                $120 by end of this week

                   0   Reply (0)   Follow(437)  

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                  I like the new trading app

                     0   Reply (0)   Follow(437)  

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