J.P. Morgan Investing vs. Schwab Introduction
Charles Schwab and JPMorgan Chase & Co. are two financial leviathans who do a lot more than just
securities broking. Here is a comparison of their investment services:
Cost
| Broker Fees |
Stock/ETF
Commission |
Mutual Fund
Commission |
Options
Commission |
Maintenance
Fee |
Annual IRA
Fee |
|
Charles Schwab
|
$0
|
$49.95 ($0 to sell)
|
$0.65 per contract
|
$0
|
$0
|
|
Chase
|
$0
|
$0
|
$0.65 per contract
|
$0
|
$0
|
Services
| Broker Review |
Cost |
Investment Products |
Trading Tools |
Customer Service |
Research |
Overall Rating |
|
Charles Schwab
|
|
|
|
|
|
|
|
Chase
|
|
|
|
|
|
|
Promotions
Charles Schwab: $0 commissions + satisfaction guarantee at Charles Schwab.
Chase:
Get zero commission on stock and ETF trades.
For Available Investments, We Like Schwab
J.P. Morgan Investing customers get to choose between managed and self-directed accounts. On the managed side, only robo accounts are available. The service trades ETF’s with low expense ratios at a cost of 0.35% per year.
Self-directed accounts have a lower fee (it’s zero) and a much larger list of tradable instruments. This list includes option contracts, mutual funds, closed-end funds, ETF’s, equities priced above $5, over-the-counter equities priced above $5, and bonds. Stocks priced under $5 are not tradable inside a J.P. Morgan Self-Directed Investing account.
Charles Schwab does permit the trading of penny stocks inside self-directed accounts. It has the same list of investment vehicles we have just seen at J.P. Morgan Self-Directed Investing. It does have one addition: futures contracts.
On the managed account side, Schwab has both robo and hybrid accounts. The former variety is actually free and trades the same types of securities that J.P. Morgan Automated Investing’s service trades: ETF’s. The hybrid system comes with a human investment advisor who has a CFP® certification. It costs $30 per month and has a one-time fee of $300.
Finally, for account types, Schwab also seems to outperform. It has a long list of available accounts for estates, trusts, individuals, businesses, and more. J.P. Morgan Investing, on the other hand, only has retirement, joint, and individual accounts.
For Website Technology, Schwab Wins Easily
J.P. Morgan Investing uses the Chase Bank website. The first thing this means is that it is a little cluttered with a lot of personal finance and cash management tools (although these can be of use to brokerage customers). The second thing this means is that the site isn’t the easiest in the world to navigate. There is an Investments tab in the top menu, and this helps to locate brokerage tools.
Speaking of brokerage tools, the order ticket has no advanced trade types. We found just the usual four: market, limit, stop, and stop limit. But there are six time-in-force choices, one of which is immediate or cancel. Mutual funds and options have discrete tickets.
A chart cannot be displayed full screen on the J.P. Morgan Investing site, although there are several add-ons, like drawing tools and technical studies.
Charts on Schwab’s website can be displayed full screen thanks to a browser platform. Called StreetSmart Central, this is a trading workhorse. It boasts a lot of advanced tools, including a very sophisticated trade ticket with professional-level order types. Examples include:
OTO (one triggers other)
Contingent on volume
OCO (one cancels other)
The order ticket can place trades for futures and options on futures. There are also pre-installed option spreads, which we didn’t find on the J.P. Morgan Investing ticket.
Another reason we like Schwab better for website trading is that the company’s site is easier to navigate thanks to a very intuitive top menu.
For Mobile Apps, It is Once Again Schwab
The Chase Bank app has J.P. Morgan Investing accounts integrated in it. Tapping on an investment account generates brokerage tools, which are basically the same resources the website has. The order ticket and charting are the same, although a chart cannot be displayed horizontally.
Schwab has two apps: a regular one and StreetSmart Mobile. As the name suggests, the StreetSmart app is modeled after Central. During our testing of it, however, we found it to be poorly designed. It should be used to trade futures, which is its primary purpose.
The regular app provides a much better experience. Features we found really useful include:
- Artificial Intelligence (pretty accurate during our testing of it)
- Heat maps
- News articles with thumbnails
- Horizontal charting
A previous widget for streaming CNBC has been removed from the Schwab app, which is the primary downside here.
For Desktop Software, Schwab Is the Only Choice
To complete the StreetSmart lineup, there is Edge. This is Schwab’s very good desktop program. It’s not necessarily better than Central as Edge lacks the ability to trade futures. Nevertheless, Edge has some really nice features that the most demanding of traders will find useful. These include:
- Probability calculator
- Level II quotes
- Direct access to market centers
- Profit-loss diagrams integrated into the trade ticket
Thankfully, CNBC is still available on Edge. Within the video window, there is a “VOD” tab to search for videos on demand.
J.P. Morgan Investing does not have a desktop platform.
For Margin Trading, Schwab Outperforms
For self-directed trading, Schwab offers both cash and margin accounts. A cash account can be upgraded to margin on the Account Settings page that appears on the website. The link can be found under the Service tab.
Schwab charges interest on margin balances using a traditional, tiered schedule. It starts at
13.575% and drops to 11.825%. Its website shows margin requirements for specific assets. The link to find this information is the “Margin Requirements” link in the top section of an asset’s profile.
J.P. Morgan Self-Directed Investing does not offer margin trading, and this means advanced option strategies are unavailable.
Finally, For Miscellaneous Services, We Again Pick Schwab
Extended Hours Trading: In addition to the regular market session, Schwab has pre-market and after-hours periods. J.P. Morgan Investing does not.
Periodic Mutual Fund Investing: Available at both brokerage firms.
Banking Tools: Both companies in this investigation offer deposit accounts through affiliated entities. These accounts can be linked online to existing brokerage accounts. Chase Bank has lots of branch locations but its accounts usually have fees and minimums. Schwab Bank’s accounts have neither fees nor minimums, although there are no branch locations for banking customers. Only Schwab Bank offers unlimited ATM fee refunds worldwide.
Individual Retirement Accounts: Schwab and J.P. Morgan Investing offer IRA’s. Only J.P. Morgan Investing has an IRA termination fee. It is $75.
DRIP Service: Cash dividends can be exchanged for additional shares at both firms.
Initial Public Offerings: Available only inside a Schwab account.
Fractional Shares: The 500 stocks that make up America’s famous index can be traded in whole dollars at Schwab (with a $5 minimum per trade). J.P. Morgan Investing does not yet offer partial-share trading.
Promotions
Charles Schwab: $0 commissions + satisfaction guarantee at Charles Schwab.
Chase:
Get zero commission on stock and ETF trades.
Recommendations
Beginners: An automated account with either brokerage firm would be a good way to start.
Small Accounts: A robo account at Schwab has a $5,000 minimum, while J.P. Morgan Automated Investing requires a $500 deposit. A self-directed account with either brokerage firm has no minimum. J.P. Morgan Investing’s $75 IRA closeout fee causes us to recommend Schwab for small IRA’s.
ETF & Stock Trading: Schwab.
Mutual Fund Trading: Schwab has more mutual funds, a better fund screener, and more detailed fund profiles.
Long-Term Investors & Retirement Savers: Who has annuities, human financial planners, self-employed 401k accounts, wealth management services, and branch locations? Schwab, of course.
Broker Reviews
Go to JP Morgan Review
or to Schwab Review
JP Morgan vs Schwab: Results
Schwab has outperformed J.P. Morgan Investing by a very large margin in this survey. Nevertheless,
a J.P. Morgan Automated Investing account would be a good option for small investors.
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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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