J.P. Morgan Investing vs. TD Ameritrade Introduction
TD Ameritrade advertises much more heavily than J.P. Morgan Investing. Does that mean it’s the better
brokerage firm of the two? That’s what this investigation is going to find out.
Cost Comparison
| Broker Fees |
Stock/ETF
Commission |
Mutual Fund
Commission |
Margin
Rate |
Maintenance
Fee |
Annual IRA
Fee |
|
TD Ameritrade
|
$0
|
$49.99 ($0 to sell)
|
14.75%
|
$0
|
$0
|
|
Chase
|
$0
|
$0
|
na
|
$0
|
$0
|
Services
| Broker Review |
Cost |
Investment Products |
Trading Tools |
Customer Service |
Research |
Overall Rating |
|
TD Ameritrade
|
|
|
|
|
|
|
|
Chase
|
|
|
|
|
|
|
Promotions
TD Ameritrade: $0 commissions + transfer fee reimbursement.
JP Morgan:
Get zero commission on stock and ETF trades.
First Category: Asset Lineups
J.P. Morgan Investing offers both advisory and self-directed accounts. The former system is in robo-only format and costs 35 basis points per year of assets under management.
Self-directed accounts have no ongoing fees. Plus, they get to trade more than just exchange-traded funds. Also on tap are bonds, stocks (including over-the-counter securities), mutual funds, ADRs (American Depository Receipts), and closed-end funds.
TD Ameritrade has no advisory accounts of any kind, and that’s the first big difference in this survey. TD Ameritrade does offer all of the assets we have seen at J.P. Morgan Investing plus forex and futures. However, TD Ameritrade charges a $6.95 commission on OTC trades. J.P. Morgan Investing does not impose any surcharges on over-the-counter trades.
Winner: Open to debate
Second Category: Investment Research
Self-directed investors who need to find something to trade will be able to use effective tools at both TD Ameritrade and J.P. Morgan Investing. During our research, we found screeners for bonds, stocks, and funds at both firms. They are easy to use and provide lots of search variables. However, we did encounter display problems for some of TD Ameritrade’s screeners on Google Chrome.
Search results can be sorted by a variety of criteria on either broker’s software. Clicking on an entry generates an asset’s profile, and that’s where differences begin to show.
On J.P. Morgan Investing’s site, stocks have a moderate amount of information on them. Examples of data points include dividend history, top 10 funds holding the stock, earnings estimates, and analyst ratings. Available analysts include CFRA and JPMorgan Securities. There are trade recommendations from more than these two, however.
The situation over at TD Ameritrade is quite a bit different. The brokerage firm delivers reports from seven analysts. These include TheStreet.com, Ford Equity Research, and New Constructs. Plus, TD Ameritrade has trade recommendations from TipRanks, which includes more trade recommendations than we found on J.P. Morgan Investing’s site.
Winner: TD Ameritrade
Third Category: Websites
For actual trading, both firms have web-based tools that can get the job done. J.P. Morgan Investing emphasizes simplicity with a basic order ticket. It has just four order types. Charts have several tools, although a graph cannot be detached or blown up the full width of the computer screen.
This situation changes drastically over at TD Ameritrade. A chart can be displayed full-screen, and there are many tools. And this is just the website. The broker also has a browser platform called thinkorswim. Launched within the site itself, the software delivers a higher level of trading performance. It has a professional-level order ticket with some really advanced order types, such as first triggers all.
Then there is SnapTicket. This is a trade bar that sits at the bottom of the TD Ameritrade website. It offers real-time data on an entered ticker symbol and provides six order types along with a rapid-fire mode for users who need the utmost speed.
Winner: TD Ameritrade
Fourth Category: Mobile Apps
J.P. Morgan Investing clients use the same app that Chase Bank customers use. As a result, brokerage clients get a lot of personal finance resources, like advertisements on credit cards.
For actual trading, the software delivers the same order ticket the website has. This means trading is on an elementary level, although the order ticket is easy to use.
Charts also borrow software from the broker’s website. This means there are plenty of technical studies and drawing tools. However, a graph cannot be displayed horizontally, which we view as a major weakness.
J.P. Morgan Investing recently added a market news section to the app (look for it under the Explore icon). There are news articles and analyst rating changes from JPMorgan Securities.
Like J.P. Morgan Investing, TD Ameritrade displays market information on its app. Resources include news articles and a daily market update. These resources will be found on the app’s dashboard. Like J.P. Morgan Investing, TD Ameritrade pulls the app’s order ticket from the website, which results in 6 trade types.
Perhaps the biggest difference comes in the charting arena. On Ameritrade’s app, a graph can be rotated horizontally, which is a major advantage. There are comparisons, technical studies, a crosshair tool, and multiple plot styles.
All of this is just the main app. TD Ameritrade has a second app, which it once again labels thinkorswim. It does bring trading to a higher level. Charts have many more indicators, and the trading ticket has a lot of professional-level features.
Winner: TD Ameritrade
Fifth Category: Desktop Programs
thinkorswim makes one last appearance. This time, it is in desktop mode. This is the highest level of trading performance the software has to offer. There are many resources available on this very powerful platform. During our test drive of it, we especially liked full-screen charting with many tools, including a right-click menu.
thinkorswim offers Level II quotes at no charge. Clicking on a bid or ask price in the Level II matrix automatically populates the software’s order form with that specific price. Many more great features abound on this high-level trading system.
J.P. Morgan Investing does not specialize in advanced trading and so does not have any desktop software.
Winner: TD Ameritrade
Sixth Category: Margin
A cash account can easily upgrade to a margin account on TD Ameritrade’s website (look for My Profile under the Client Services tab). And of course, it’s possible to open a margin account straight away.
What we don’t like about TD Ameritrade’s margin service is the price. The broker has some of the steepest rates in the industry. A small balance will cost 14.75% annualized. A large balance (anything above $250k) costs 13.75% right now.
But J.P. Morgan Investing has no margin service at all.
Winner: TD Ameritrade
Seventh Category: Extra Services
Periodic Mutual Fund Investing: Traders at both brokerage houses in this competition can enroll in autopilot mutual fund purchases.
Fractional Shares: Not available with either firm.
Extended Hours: TD Ameritrade has pre-market and after-hours trading. J.P. Morgan Investing does not.
Cash Management Features: It’s possible to link a Chase Bank checking or savings account to a J.P. Morgan Investing account. TD Ameritrade offers a debit card and a checkbook that can withdraw funds directly from a brokerage account.
Individual Retirement Accounts: Both broker-dealers have IRAs. TD Ameritrade has more IRA types, including a Minor IRA. Moreover, only J.P. Morgan Investing charges a fee to close an IRA (it’s $75).
Initial Public Offerings: Only available inside a TD Ameritrade account.
DRIP Service: Both firms have it.
Winner: TD Ameritrade
Promotions
TD Ameritrade: $0 commissions + transfer fee reimbursement.
JP Morgan:
Get zero commission on stock and ETF trades.
Our Recommendations
Beginners: A robo account with J.P. Morgan Investing.
Mutual Fund Trading: J.P. Morgan Investing has 3,027 mutual funds. TD Ameritrade has 5,770 mutual funds, plus better fund resources. We recommend TD Ameritrade.
ETF & Stock Trading: thinkorswim provides the most advanced experience.
Small Accounts: J.P. Morgan Investing’s automated service requires $500 to begin. Neither firm has any ongoing fees or minimums for self-directed accounts, although J.P. Morgan Invest’s IRA closeout fee causes us to recommend TD Ameritrade for small IRAs.
Long-Term Investors and Retirement Savers: TD Ameritrade has more account types, including estate accounts and tax-exempt trusts.
JP Morgan Chase vs TD Ameritrade Final Verdict
Yes, TD Ameritrade is in fact the better investment firm out of the two, at least for most financial
services. We do like J.P. Morgan Investing’s robo account, though.
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Chad Morris is a financial writer with more than 20 years experience
as both an English teacher and an avid trader. When he isn’t writing
expert content for Brokerage-Review.com, Chad can usually be found
managing his portfolio or building a new home computer.
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