J.P. Morgan Self-Directed Investing Review 2022: Is It Right For You?

Ashley Jackson

J.P. Morgan Self-Directed Investing offers beginners and long-term investors a convenient and easy-to-use brokerage account that lets you get started with no minimum balance requirement and unlimited free trades. With access to educational resources for beginners to learn how to invest and understand their portfolios, you can select investments and set parameters that suit your risk tolerance.

Overall rating

4.5

Summary: J.P. Morgan Self-Directed Investing can be a promising option for beginners and seasoned investors looking for free trades and a portfolio tool to help build out your asset allocation.

J.P. Morgan Self-Directed Investing

jp morgan logo

$0

Fee Per Trade

$0

Account Minimum


Reviews

5

Account Opening

4.5

Fees

5

Deposits & Withdrawals

4

Trading Platform

4

Markets & Products

4.5

Research Tools

4.5

Education

4

Customer Service

5

Safe & Secure

Pros

  • Access to research and insights
  • Ideal for beginners starting to invest
  • Ideal for active investors

Cons

  • Limited accounts
  • No fractional shares

Best For

  • Unlimited trades with $0 commissions
  • No minimum investment
  • Convenient platform 
  • Portfolio builder

Features

HQNew York, USA
AccountsGeneral Investment, Traditional IRA, Roth IRA
InstrumentsStocks, Bonds, Mutual funds, ETFs, and Options
RegulationMember of SIPC & FINRA
Minimum Deposit$0
Fees$0 commission
Demo AccountNone
LeverageNot available
Trading PlatformsSelf-Directed Investing & Automated Investing

In depth review on J.P. Morgan Self-Directed Investing  

J.P. Morgan Self-Directed Investing is an affordable and low-cost brokerage account that can help you start investing and learn the basics about managing your risk and your portfolio. With no minimum investment, you can get started with as little as $1 and gradually increase your investments as you gain confidence. 

J.P. Morgan Self-Directed Investing is best for 

  • Unlimited trades with $0 commissions: Whether you’re a beginner or a long-term investor, $0 commissions make this platform ideal. 
  • No minimum investment: You can save and invest an amount that works best for your budget and financial needs. 
  • Convenient platform: You can manage your investments easily from the mobile app or online platform.
  • Portfolio builder: The portfolio Builder tool helps you create asset allocations based on your risk tolerances, investment goals, and time horizon. It requires you to answer a few questions that will determine what investments are best suited to your risk profile.  

J.P. Morgan Self-Directed Investing benefits  

  • Access to research and insights: You’ll have access to the latest research, articles, and insights from J.P. Morgan specialists to help you make your investment decisions.
  • Ideal for beginners starting to invest: There are many tools and educational resources available for beginners to learn investing. 
  • Ideal for active investors: For investors that frequently trade, J.P. Morgan Self-Directed Investing is a great choice with its $0 commission structure. 

J.P. Morgan Self-Directed Investing drawbacks  

  • Limited accounts: The J.P. Morgan Self-Directed Investing account allows you to have multiple account types, including a General Investment, Traditional IRA, and Roth IRA account. While this is sufficient for most investors, it doesn’t cover more niche accounts such as the SEP-IRA.
  • No fractional shares: The platform does not offer fractional shares, which could be a concern for newer investors, potentially starting will smaller sums to invest.

Account opening  

5

You can open a Self-Directed Investing account with J.P. Morgan in a few simple steps. As a new or existing customer, you’ll need to provide the following information:

  • Basic personal information
  • Employment information
  • Social security number
  • Existing brokerage account details (if doing a transfer)
  • Government-issued ID

In addition, you’ll need to be at least 18 years old and provide your passport and foreign tax ID if you are not a U.S. citizen. 

Fees  

4.5

With J.P. Morgan Self-Directed Investing, there is no annual fee, monthly maintenance fee, and no minimum balance. You get unlimited commission-free trades for stocks, ETFs, and options. 

There are other fees to consider when opening an account. Some of these fees include:

  • Brokerage account transfer: There is a $75 fee when you transfer securities out of the account. 
  • Wire transfer: There is a $25 wire transfer fee (this is not applicable for internal wire transfers). 
  • Options contract: While there is no fee for the options trade, there is a $0.65 fee for the options contract. 
  • Stop payment: There is a $30 fee per item. 
  • Check returns: There is a $12 fee per check. 

The unlimited commission-free trades apply to online transactions only. There is a $25 fee for call-in trades for stocks, ETFs, and options. 

Deposits and withdrawals  

5

There is no minimum deposit to open your account, and some of the ways you can fund your account are by doing a brokerage transfer, wire transfer, ACH transfer, and transferring funds from your Chase checking account. 

To withdraw your funds, you can do a brokerage transfer out for a $75 fee, a wire transfer, an ACH transfer, and also a transfer to your Chase checking account. 

Trading platform  

4

The Self-Directed Investing platform can be easily accessed via the Chase app where you can manage your investment account and personal checking account in one place. New customers will need to download the mobile app.

Accounts that have a minimum balance of $2,500 will have access to the Portfolio Builder tool, which helps investors create asset allocations based on their risk tolerances, investment goals, and time horizon. You’ll need to answer some questions, which will take a few minutes. It’s a good way to check if your current investments are well-suited to your risk profile, and you can make adjustments if needed. 

While the Self-Directed Investing platform gives you access to stocks, bonds, mutual funds, ETFs, and options, with the Portfolio builder you’ll only have access to stocks and ETFs. 

Markets and products  

4

With J.P. Morgan Self-Directed Investing, you can invest in stocks, bonds, mutual funds, ETFs, and options. This is a great place to start for new investors and grow for long-term investors. More advanced investors may find the options limited as the account does not support futures, penny stocks, cryptocurrencies, or forex. 

Furthermore, there is no option to buy fractional shares, limiting investors who prefer to trade with smaller sums of money and buy in more frequently. 

The platform is primarily focused on the U.S. market, so investors who are looking for larger exposure to international markets should look elsewhere. In addition, the platform cannot trade pre or post-market hours.

Research tools  

4.5

With the J.P. Morgan Self-Directed Investing account, you’ll have access to the latest research, insights, and articles to help you learn how to invest, set your risk tolerance and choose the right investments for your financial needs.

You’ll be able to create watch lists, use specific criteria to filter investment options, browse market news, and review company financials. It’s a great way to get started. However, some users may find that they could outgrow the platform with time. 

Education  

4.5

The J.P. Morgan Self-Directed Investing account provides a strong foundation for newer investors to understand general concepts about investing and retirement. There is a Learning & Insights section of the platform that provides educational videos and several articles on ETFs and mutual funds to get started. 

Customer service  

4

There’s an FAQ section to help you answer any question regarding the Self-Directed Investing account on the Chase website. If you need to get in touch, in-person support is available at a branch near you. You can schedule a meeting in advance on the website. 

Plus, you can get in touch by phone or social media where you can reach out on Twitter or Facebook for a response from the team. 

Safe and secure  

5

J.P. Morgan takes standard measures to safeguard your personal information, and they have double authentication requirements in place when your device is not recognized during login.  

In addition, accounts are protected with SIPC insurance for cash and securities up to $250,000 cash and $500,000 total. 

Is J.P. Morgan Self-Directed Investing right for you?

The J.P. Morgan Self-Directed Investing account is best for investors looking to get a firm grasp on financial markets and investing. With unlimited commission-free trades and no minimum balance, newer investors can learn how to build a portfolio and allocate assets according to their risk tolerance using the Portfolio Builder.

The platform supports you in managing your investments online or via the mobile app and you can invest in amounts that best suit your investment goals and financial needs. 

However, J.P. Morgan Self-Directed Investing falls short in many areas. You cannot invest in fractional shares which could lead to new and long-term investors looking for alternative options. Furthermore, with limited accounts available, investors such as the self-employed who are maybe looking for niche investment and retirement accounts would be better suited to finding a brokerage account that better fits their requirements.

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