Posted by William Charles on August 26, 2018
Misc

Published on August 26th, 2018 | by William Charles

64

[Now Live] J.P. Morgan Chase Launches New App ‘You Invest’ Offering Free Trades

Update 8/26/18: Chase You Invest is now live. Everyone gets free 100 trades the first year. Premier checking accounts get free 100 trades every year. Sapphire Banking and Private Clients get free unlimited trades always.

CNBC is reporting that new week J.P. Morgan Chase will release a new digital investing service called ‘You Invest’ . Features of the new service include:

  • 100 free trades in the first year for app and website users. Those with $15,000 held at the bank will receive 100 free trades annually (Chase Private Clients get unlimited free trades)
  • Portfolio building tool
  • Access to J.P. Morgan Chase’s stock research

After you hit your limit of free trades a fee of $2.95 per trade will be charged. Robinhood already offers free trades, so the value add seems to be that it’s connected to Chase banking and you get access to the other free tools. Chase Sapphire Banking is set to launch next week as well, if there is some sort of bonus for cashing out Chase Ultimate Rewards points to Chase’s investment arm then these free trades could become exceptionally useful to readers. J.P. Morgan Chase also plans to add a robo-advisor in January of 2019. Chase launched Finn by Chase in late 2017 in an attempt to get more millennial to sign up for an account.



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Ma
Ma

This seems like an excellent deal…hopefully they add some perks to those with all of deposit/invest/credit accounts at chase. Similar to bofa

Andrew Donshik
Andrew Donshik

So like Robinhood, but it doesn’t crash at the slightest sign of volatility.

Celia
Celia

I wonder if this will extend to all accounts. I have a sep account at chase, mostly etf, but they charge $5 per trade currently. That would be helpful since I play around with some stocks i that t account.

Before anyone judges why I have a retirement acct at a bank, and I know better now… I should have moved it out years ago but there wasn’t much in it, about 50 Apple shares, and I just started a new one somewhere else. Since then though it has blown up to quallify for CPC, though I never pursued it.

MoreSun
MoreSun

You do you Celia ! (And considering your account has blown up to qualify for CPC I’d say it’s working!)

Max
Max

DOC, do you have access to the terms and conditions of this platform? Can you invest in your IRA and avoid the $30 annual Chase fee for accounts under 10,000?

MoreSun
MoreSun

Potentially exciting news! Personally I still want to know
1. Are they going to have options trading capabilities?
2. What will the cost of trades be after year 1?

Maurice
Maurice

I did a little DD on this. For regular accounts (non private banking or premier plus checking), you will your free 100 trades first year, then you need to pay $2.95 per trade. For premier plus checking, you can get free 100 trades every year. For private client, you get unlimited free trades.

Steven
Steven

Robinhood requires a 3 day holding period. That’s their fee. It just isn’t always clear. I’d argue that the 3 day holding period costs more than the $3-$7 you pay for trades.

Lrdx
Lrdx

Are you sure that’s not the mandatory SEC settlement period?

Steven
Steven

3 days is when you load Robinhood with funds, not when you sell a stock. Seems like the exception is if you use Robinhood instant which I have no idea what it is.

Chase
Chase

I forget if it’s automatic or if it’s once you get to a certain minimum but RH “fronts” you the funds while it transfers. The 3 days is the ACH transfer rate, not really any doing on their part.

JMR0303
JMR0303

Except hasn’t same-day ACH been fully implemented now? At least, that’s what the NACHA (the clearing house) website says- the third and final phase came into force on March 18th this year and should mean same day or next day clearing for pretty much any ACH payment or deposit.

Ann
Ann

Unfortunately some institutions (such as Discover) add their own multi-day holds on either end, regardless of how fast the actual ACH part happens.

Lrdx
Lrdx

Robinhood Instant is practically margin trading. It has legal and slight risk differences, read up on rehypotetication.

MoreSun
MoreSun

So wait… you are just talking about when you transfer money into the account? If that’s the only hold on your money that’s absolutely normal for many brokerages…

Steven
Steven

Actually, they might have gotten rid of that since I can’t find on their website where it stated the 3 day hold. It used to be that once the money hits the account, the 3 day hold starts so it wasn’t about transfer time. I still don’t trust someone that is not a bank with my money. Plus, there are relationship benefits you miss out on like Bank of America’s Preferred Rewards or qualifying for higher tier checking/savings with banks like Chase.

PianoCat
PianoCat

Let’s hope they have some signup bonus like Merrill Edge ($600 bonus for moving over $200K)

Andrew
Andrew

This is pretty big. I wonder if this will force the big brokerages like Charles Schwab, Vanguard, and Fidelity to lower their commissions per trade

sonofsam
sonofsam

I think this will go nowhere fast. As much as Chase likes to claim they are a tech company that does banking vs just a bank, the results dont bear that out. Witness the chase pay app fiasco. Not one other mobile payment app is hurting due to chase entering the space.

Similarly, I bet schwab, TD, etrade, etc dont lose much if anything to Chase out of this. If you get free trades but the app is an unreliable PoS, no one will bother with it. Time will tell but I am skeptical.

Celia
Celia

I’d agree if it was just the app but the post says “app and website users.” Their website is fine for trades. They seem to just want to keep a broker out of it.

Sa
Sa

this.

Bill M
Bill M

Unless this includes options, it’s of no value to me. I mostly use Tastyworks — no account minimum; $5 for stocks to open, $0 to close and $1/contract for options to open, $0 to close. Max commission on options is $10 per leg so 100 iron condors costs just $40 plus regulatory/exchange fees.

Alfonso
Alfonso

Tastyworks is legit!

Lrdx
Lrdx

Vanguard has (or will have in weeks) zero trading fees for any non-geared ETF from any provider.

AKSF
AKSF

Would $15k of stock held qualify for free ongoing trades? Or does it have to be $15k in checking/savings deposits?

Larry Dallas
Larry Dallas

If you only have a credit card account with Chase, do you get access to this new service?

MoreSun
MoreSun

This is a brokerage account. You’ll have to sign up for this type of brokerage account specifically, but being an existing customer it should be fast. I see no reason why they would limit this just to active Chase clients, the article doesn’t mention that. If you sign up for this account their goal is to cross sell you on everything else they offer.

Reg
Reg

Free!? All this talk of free trades makes me wonder: does anyone know what the fee/cost of the bid-ask spread is on platforms like this and Robinhood?

If you are not familiar with bid-ask spreads, you should definitely google them. The last time brokerages started price wars on commissions, they just made it up by changing the bid-ask spreads by a couple cents.

Jeff S
Jeff S

If you’re using market orders then you’re doing it wrong

Brandon
Brandon

limit orders/sells ONLY allllll day kids. Set your cost don’t let them set you

Adrian
Adrian

Interesting.

Isabella
Isabella

Merrill Edge already provides free trades.

Ann
Ann

With what requirements and limits?

Lrdx
Lrdx

30 free trade / month with at least $50k. 100 / month with $100k.
https://www.bankofamerica.com/preferred-rewards/

calwatch
calwatch

With Chase’s expansion to the east coast Top 25 markets they are missing, they are definitely going for Bank of America head to head for the mass affluent. Should be interesting. If Chase covers ACAT fees I’ll happily move over my Schwab holdings to Chase.

Yet Another Redditor

The You Invest seems to be live now. I haven’t tried signing up though. https://imgur.com/a/9w53hRA

Chuck

Thank you!

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