JP Morgan vs. Fidelity Introduction
Fidelity and JPMorgan Chase & Co. are two mammoths in the financial services industry with
trillions of dollars in client assets (yes, trillions with a t). So, can we simply recommend both
without reservations? These two may be more different than you think.
Cost
| Broker Fees |
Stock/ETF
Commission |
Mutual Fund
Commission |
Options
Commission |
Maintenance
Fee |
Annual IRA
Fee |
|
Fidelity
|
$0
|
$49.95
|
$0.65 per contract
|
$0
|
$0
|
|
Chase
|
$0
|
$0
|
$0.65 per contract
|
$0
|
$0
|
|
TD Ameritrade
|
$0
|
$49.99 ($0 to sell)
|
|
$0
|
$0
|
Services
Promotions
Fidelity: Get $0 stock commissions.
Chase:
Get up to $625 when you fund a J.P. Morgan Self-Directed Investing account.
TD Ameritrade: $0 commissions + transfer fee reimbursement.
Up First Is Investment Styles
J.P. Morgan Investing is JPMorgan Chase & Company’s discount brokerage arm. The online broker offers both self-directed and automated accounts. The robo program uses ETF’s from J.P. Morgan only.
Self-directed clients get a much larger selection of tradable instruments. These include:
- U.S. equities
- Mutual funds
- ETF’s
- Closed-end funds
- Bonds and bond equivalents
- Option contracts
Fidelity has the same investment vehicles that J.P. Morgan Self-Directed Investing offers. But Fidelity adds life insurance, foreign stocks on several exchanges around the globe, and annuities.
On the automated side, Fidelity charges 0.35%, the same amount J.P. Morgan charges. Similar to its rival here, Fidelity only uses Fidelity funds in its robo program.
Winner: Fidelity
Next Is Website Technology
J.P. Morgan self-directed and robo customers use the Chase Bank website. Bank and brokerage accounts are linked automatically. The site does have a lot of banking tools, and this could be an advantage or a disadvantage, depending on how you look at it. The downside is that the additional tools clutter up the site.
The investment section of the website delivers basic charting and a rather simple order ticket. There are no advanced order types like trailing orders. These are available on Fidelity’s web-based order ticket.
Charts on Fidelity’s website are also more advanced, delivering full-screen mode, several plot styles, tons of drawing tools, and the ability to export a graph as a spreadsheet or an image.
Fidelity’s website also has an Artificial Intelligence, something we didn’t find on the J.P. Morgan Investing site.
Winner: Fidelity
Third Is Other Software
Besides its very good website, Fidelity has a desktop platform named Active Trader Pro. This advanced piece of software delivers many useful tools, including:
- Live streaming of Bloomberg TV
- Basket order ticket that can send multiple trades simultaneously
- Conditional trade ticket
- Full-screen charting with many tools
- Excellent option tools
Fidelity’s mobile app is another great trading platform with many widgets, including horizontal charting with many tools, mobile check deposit, and integrated option spreads.
J.P. Morgan Investing doesn’t have a desktop program but it does have a mobile app. The software delivers option chains with calls and puts only, vertical charting, and a watchlist. Although there’s a check deposit tool on the app, it can only send a check into a Chase Bank account.
Neither broker-dealer in this contest has a browser platform. Fidelity does have an app for Apple Watch, something that even Chase Bank doesn’t have. The watch platform shows market news, a watchlist, account details, and a small graph.
Winner: Fidelity
Fourth Is Margin
A self-directed account at Fidelity can be set up as either a cash account or a margin account.
The broker’s software unfortunately doesn’t display margin details on specific assets, although
margin balances for an account are displayed.
On Fidelity’s web-based trade ticket, there is a toggle switch that allows an order to be set to
either a cash or margin trade. The company’s margin rates start at
9.825% and drop to 5.825%.
Traders at J.P. Morgan Investing are left out in the cold here as the brokerage house does not have margin accounts.
Winner: Fidelity
Fifth Is Security Research
Through its mobile app and website, J.P. Morgan Investing provides details on stocks, funds, and options. Equity reports are available from CFRA and its own in-house research. These can be downloaded in pdf format.
A stock’s profile has other pieces of information, like earnings and earnings predictions, news articles, and dividend payments.
Fidelity’s website and mobile app have even more information. During our investigation, we found social sentiment scores, data from Trefis for a stock’s valuation, ownership information, ESG details, and technical analysis scores from Recognia.
Fidelity uses no less than 9 analysts for stock reports. Unfortunately, these can only be downloaded on the website.
Winner: Fidelity
Sixth Is Miscellaneous Services
DRIP Service: Autopilot dividend reinvesting is available free of charge at both Fidelity and J.P. Morgan Investing.
Extended Hours Trading: Fidelity has it, but J.P. Morgan Investing does not.
Banking Tools: Fidelity has lower fees and minimums and more perks.
Individual Retirement Accounts: Only Fidelity has an Inherited IRA, Minor IRA, and small business plans. Only J.P. Morgan Investing has a closeout fee.
Initial Public Offerings: Fidelity customers can participate in forthcoming IPOs. J.P. Morgan Investing customers cannot.
Periodic Mutual Fund Investing: Systematic purchases of mutual funds can be made at either Fidelity or J.P. Morgan Investing.
Fractional Shares: Every stock and ETF on the major American exchanges can be purchased in whole dollars at Fidelity. Not a single stock or ETF can be at J.P. Morgan Investing.
Winner: Fidelity
Now, Our Recommendations
Mutual Fund Trading: Fidelity has three times as many mutual funds as its rival does. Furthermore, Fidelity has a better fund screener and more detailed fund profiles. We endorse Fidelity.
ETF/Stock Trading: Only Fidelity has an advanced desktop program. Plus, it has whole-dollar investing and better stock research. Easy choice.
Long-Term Investors & Retirement Savers: Fidelity has more IRA choices. Combined with old-school retirement planning, annuities, lots of retirement education through the website and mobile app, and solo 401(k) accounts, it’s another easy pick.
Small Accounts: Fidelity’s robo program has no minimum. J.P. Morgan Automated Investing has a $500 starting requirement. For self-directed trading, Fidelity also seems like the better option due to its fractional-share service. Additionally, some of Fidelity’s mutual funds have no minimum investment amount.
Beginners: We suggest Fidelity for its larger selection of learning materials and better customer service. Plus, its desktop program has a demo mode.
Promotions
Ally Invest:
Up to $3,000 cash bonus + $0 commission trades.
Fidelity: Get $0 stock commissions.
Chase:
Get up to $625 when you fund a J.P. Morgan Self-Directed Investing account.
Broker Reviews
Go to JP Morgan Review
or to Fidelity Review
JP Morgan Chase vs Fidelity: Results
Although J.P. Morgan Investing comes from a famous financial institution, it is no match for
Fidelity.
Anyone looking for the top-rated brokerage firm on the market
should go with TD Ameritrade
or read TD Ameritrade review.
|
Disclaimer
INVESTMENT AND INSURANCE PRODUCTS ARE: NOT A DEPOSIT • NOT FDIC INSURED • NO BANK GUARANTEE • MAY LOSE VALUE
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.
Updated on 4/16/2022.
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