JP Morgan penny stocks

J.P. Morgan Penny Stock Fees. Chase OTC/Pink Sheets Stocks (2022)


Chase penny stock commission, fees charged for buying pink sheets/OTCBB bulletin board/gray market/stocks priced under $1. Rules and policy. Can I buy OTC stocks on J.P. Morgan?


Can I Buy Penny Stocks on Chase?


Chase doesn’t allow clients to buy (and have certain restrictions on the sale of) penny stocks in J.P. Morgan Self-Directed Investing accounts. Chase defines a penny stock as any security that is trading at a price of less than $5.00 and isn't listed on a major exchange.

However, you can buy securities that aren’t listed on a major stock exchange but are trading at $5.00 or more in your J.P. Morgan Self-Directed Investing account. There may be restrictions on the sale of such securities if they trade below $5.00.


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Comparison


In contrast, Firstrade offers over 15,000 OTC stocks with $0 commission. Learn more about Firstrade penny stocks trading.


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Chase Penny Stock Fees


Chase penny stock commission $0
Chase penny stock surcharge $0
Chase large order surcharge $0
Other fees sales are subject to a transaction fee of between $0.01 and $0.03 per $1,000 principal


OTC Marketplace


If you’ve found a penny stock at Chase that you think is going to go through the roof any day now, keep in mind that there are several hazards in the OTC marketplace. Penny stocks tend to be much more volatile than securities that trade on major exchanges. Over-the-counter stocks also have less liquidity, which could make it hard to find a buyer.

Because there is less government oversight of this financial market, it has seen its share of criminal activity over the years. Less information makes it hard to do thorough research on a stock.


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How To Buy Penny Stocks or OTC Stocks on J.P. Morgan Chase


To submit an order for an OTC stock, the same procedure for buying a regular security is used. The broker has a mobile app and website trade bar where orders for penny stocks can also be submitted.


J.P. Morgan Chase OTC Trading


The pricing schedule for over-the-counter stocks is the same as for regular stocks at Chase and Firstrade. Any security that trades under $5 is $0 at Firstrade.






Chase Brokerage Transaction Charges


You may have heard of JP Morgan's new brokerage account called “J.P. Morgan Self-Directed Investing”, which is trying to capture market share from this competitive field by offering a low-cost platform with extra perks for Chase banking clients. Below will go over all of the trading and transaction-related fees that you would incur with a Chase J.P. Morgan account.


Stock & ETF Commissions


Chase supports trading in stocks, ETF’s, bonds, and mutual funds. The standard commission for trading stocks and ETFs is a flat $0 per trade.


Mutual Fund Fees


Although Chase only offers less than 3,000 mutual funds on their platform, they are all no-load funds. Chase also doesn’t charge any commissions on mutual fund trades, which makes mutual funds a relatively cheap investment type to trade with Chase. The only expense you’ll incur trading these funds with Chase is the fund’s annual expense ratio, which is embedded in the daily NAV.


Fixed Income Commissions


If you plan to trade fixed income in your J.P. Morgan Chase account, a pre-existing relationship with Chase banking won’t get you any preferred pricing on these instruments. For all clients, bond commissions are $1 per bond (1 bond = $1,000 par) with a $10 minimum and $250 maximum for each transaction. Trading in U.S. Treasuries, however, is always commission-free in your J.P. Morgan Chase account. In addition to the commissions we discussed, the only other trading fees you’ll incur are the small regulatory fees that all brokers pass through to investors, but these only amount to $0.01 to $0.03 per $1,000 of principal.


Investments You Can’t Trade with Chase


At this point we’ve gone over J.P. Morgan’s security offerings (stocks, ETFs, bonds, and a limited selection of mutual funds), so now it’s time to point out where Chase falls behind. Chase doesn’t currently support trading in options or futures, which really sets them apart from much of the competition in a bad way. Knowing this, it comes as less of a surprise that Chase doesn’t currently offer margin accounts.


Conclusion


To summarize, Chase doesn’t charge all that much in the way of trading fees. All things equal, their standard pricing rates are very competitive. When you add on top of that the 100 free trades for new accounts and the potential for even more free trades for Chase banking customers, it would be hard not to give them a try. But in reality, we know all else is not equal, and depending on how diversified of an investor you are, you end up “paying” for your free Chase trades with the lack of options and futures, and a very limited selection of mutual funds.


Disclaimer


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


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.