Vanguard vs JP Morgan Chase (2024)


Vanguard vs JP Morgan (Chase): which company is better? Compare IRA/Roth accounts, online investing fees, stock broker mutual fund rates, and differences.


Overview of Vanguard and J.P. Morgan Chase


In the realm of investment management, Vanguard and J.P. Morgan (JPM) are some of America’s biggest players. But neither firm has forgotten self-directed traders. Here’s the rundown on these two:


Cost


Broker Fees Stock/ETF
Commission
Mutual Fund
Commission
Options
Commission
Maintenance
Fee
Annual IRA
Fee
Chase $0 $0 $0.65 per contract $0 $0
Vanguard $0 $20 $1.00 per contract $20* $20*


Services


Broker Review Cost Investment Products Trading Tools Customer Service Research Overall Rating
Chase
Vanguard


Investment Services


Only self-directed accounts will be found at J.P. Morgan Investing. Vanguard has a robo account that costs 20 basis points and has a $3,000 minimum deposit requirement.

Vanguard, but not J.P. Morgan, goes a step further by offering old-school account management packages. These obviously come with a human advisor and cost a little more (starting at 0.30%).

Self-directed traders will find the same investment lineup at both firms:

  • Option contracts
  • Exchange traded funds
  • Closed end funds
  • Mutual funds
  • Bonds
  • Stocks

Vanguard permits the trading of penny stocks (stocks below $5), which J.P. Morgan doesn’t allow. Moreover, Vanguard has limited trading in international stocks.

Vanguard offers more account types than J.P. Morgan Investing. These include trusts, custodial accounts, and 529 plans.

Winner: Vanguard


Find a Financial Advisor


If you are looking for a professional money management service in your area, you can find a Financial Advisor on the Wiser Advisor (or read Wiser Advisor review).

Visit Wiser Advisor


Websites


During our testing of Vanguard’s website, we found it a bit difficult to navigate, although a search bar at the top helps a little. Charts are on a rudimentary level, with only a few technical studies and no full-screen mode.


Vanguard versus Chase


Vanguard’s trade ticket only has 4 order types and 2 duration choices. On the upside, it does have discrete selections for buy to cover and sell short. It also has links to Vanguard’s customer service and a tutorial that shows how to use the trade ticket.

J.P. Morgan displays similar links on its order ticket. It has the same order types as Vanguard’s ticket but more time-in-force choices.


JPM vs Vanguard


As with Vanguard, charts on the Chase Investing site are on a basic level. There are more tools, though, including drawing tools.

Both websites have option chains on a security’s profile. These chains only offer calls and puts (no spreads) because only single-leg trades can be placed.

Winner: J.P. Morgan Investing


Mobile Apps


From basic websites we move to basic mobile apps. Vanguard recently overhauled its app, and this new design has eliminated many tools and features. It is pretty much bare bones now with zero graphs. It is not possible to trade options and non-Vanguard mutual funds on the app, and stocks have no profiles.


Vanguard or JP Morgan


During our testing of Vanguard’s app, we were not able to get to the order ticket because it was under construction. Apparently, the brokerage house is still working on this very rudimentary app.

Although the J.P. Morgan Investing app also emphasizes simplicity, the situation improves a little. The order ticket is the same one that appears on the website. The graphing software is the same, although a graph cannot be shown in horizontal mode.


JPM or Vanguard


Winner: J.P. Morgan Investing


Margin Borrowing


Vanguard offers both cash and margin accounts. Those who opt for the latter will receive decent, although not fabulous, interest rates. Currently, the brokerage firm starts at 13.75% and drops to 10%.

Vanguard closely follows Reg T requirements. Initial margin for a stock is 50% for both long and short positions. Stocks below $5 aren’t marginable.

J.P. Morgan Investing also offers margin accounts. Margin rates range from 13.25% to 11%.

Winner: Vanguard


Security Research


The J.P. Morgan Self-Directed Investing website has screeners for stocks, funds, and bonds. There is no screener for options.

The broker’s stock screener has 45 search criteria. Examples include industry, market cap, and P/E ratio. Results can be sorted by many criteria, and there is a trade link for each entry.

Stock profiles have news articles, press releases, earnings estimates, and pdf reports. The brokerage house uses two analysts: CFRA and J.P. Morgan Equity Research.

Vanguard uses reports from Argus and MarketGrader. Equity profiles have more information on them compared to J.P. Morgan Investing’s Profiles. For example, Vanguard provides annual and quarterly numbers from financial statements. J.P. Morgan Investing’s profiles don’t have these figures.

Like J.P. Morgan Investing, Vanguard has predefined screens on its equity search tool. Examples include large cap income and small cap growth. Vanguard does not have a screener for options, although it does have a very basic search wizard for bonds.

Winner: J.P. Morgan Investing


Miscellaneous Services


Initial Public Offerings: Not available at either broker-dealer.

Banking tools: Vanguard no longer offers any cash management tools, other than an ACH transfer widget. J.P. Morgan Investing customers can link Chase Bank accounts, although that’s the extent of the broker’s banking service.

Fractional-share trading: Currently, only whole-share investing in stocks and ETF’s is available inside self-directed accounts at Vanguard and J.P. Morgan Investing.

IRA’s: J.P. Morgan has just two IRA types: traditional and Roth. Vanguard offers these 2 plus SIMPLE and SEP plans for small businesses. Vanguard doesn’t charge any fees on traditional and Roth plans. JPM has a $75 closeout fee.

Dividend reinvestment program: DRIP is available at no cost at both companies.

Extended hours: Vanguard clients can trade securities after the closing bell. J.P. Morgan Self-Directed Investing customers cannot.

Winner: Pretty even


Our Recommendations


Stock/ETF trading: J.P. Morgan has slightly better software. But we endorse Charles Schwab.

Beginners: Either firm is good.

Mutual fund trading: Using Vanguard’s mutual fund screener, we found 6,851 securities. Over at J.P. Morgan Self-Directed Investing, we found 3,042. J.P. Morgan Investing’s profiles display Morningstar ratings. Vanguard’s profiles don’t. Vanguard charges $20 fee for most funds, while Chase does not. Firstrade offers over 11,000 mutual funds free of charge. Take your pick.

Small accounts: Vanguard’s automated account service has a $3,000 minimum. Neither firm imposes minimums on self-directed customers. J.P. Morgan Investing’s $75 IRA closeout fee causes us to recommend Vanguard for small IRA’s.

Long-term investors and retirement savers: Chase has more services for long-term investors. Only Vanguard has SEP and SIMPLE retirement accounts. Plus, it has self-employed 401(k) accounts, which J.P. Morgan Investing also lacks. Combined with traditional financial-planning services (for very large accounts only), Vanguard is the better choice.


JP Morgan vs Vanguard: Results


Both Vanguard and J.P. Morgan Investing offer good resources for self-directed investors and are very close in terms of quality, available services, technology, and customer care.


Open Charles Schwab Account


Visit Schwab Website

Open Chase Account


Visit JP Morgan Website

Updated on 5/24/2024.


About the Author
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.