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Chase Brokerage and IRA Investment Accounts Review and Fees



J.P. Morgan Chase Brokerage Accounts


J.P. Morgan Chase (member of SIPC) offers their clients more than just banking. The firm also provides both managed investment accounts, where Chase advisors will make most investment decisions, as well as self-directed Chase brokerage accounts, where client makes all investment decisions.

Investment advisors at Chase use securities and other investment tools licensed through J.P. Morgan Securities as well as annuities and insurance products offered by the bank through Chase Insurance Agency. Do-it-yourself customers could invest online in stocks; ETFs; corporate, municipal and agency bonds; U.S. Treasuries; and mutual funds (including no-transaction-fee mutual funds).

Everyone has different objectives and goals when it comes to their retirement or taxable brokerage account so the choice, strategy and solutions an advisor will offer or self-directed customer will choose will differ for each individual.


J.P. Morgan Chase Managed Brokerage Accounts


JP Morgan Chase Chase Private Client is the full service private banking version of the plain vanilla Chase bank account. The core of the Chase Private Client account is the asset management function of the account. While the Chase Private Client account offers cash access with debit, checking and credit cards, the client will be advised to place the bulk of the funds in the account into a version of Chase’s managed money program. Continue Chase Private Client review.


Chase IRA Fees


At Chase, the annual fee is waived for an IRA when a client owns a Chase checking account. Most Chase retirement products will offer different rates and fees based on the amount of money being invested, how it will be invested and the length of the investment. For that reason not all exact fees and rates are listed in this review. This is an overview of what products are available to meet certain goals, a list of pros and cons for each product as well as a range of possible fees or interest rates when possible.


Chase Investment Products


1) Mutual Funds: the goal of a mutual fund is to diversify an investment portfolio. A fund is a financial instrument that pools its member’s capital to buy a diverse group of stocks or bonds. It can have high to low risk.

2) Annuities: are meant for someone looking for a steady stream of income when they retire. The type of annuity a person gets will depend on their age, goals and initial investment.

3) Stocks: are risky. If someone wants to include stocks into their investment portfolio they will need to be evaluated for their ability to handle the risk of a loss. For managed accounts, Chase advisors will ask a series of questions to determine if stocks are right for a client to own.

4) CD’s: Also known as a certificate of deposits, have specific fixed interest rate for a specified period of time. The CD is held until maturity. Once maturity is reached, the funds can be withdrawn together with the accrued interest.

5) Professionally Managed Accounts: are accounts with many different products designed to reduce risk and help meet an investment goal. Fees and expenses may be included in a managed account. At Chase, the minimum required to have this type of account is $50,000.

6) Money Markets: are savings accounts with a higher interest rate than a regular savings account, and usually higher deposits are required. In addition, money markets only allow a limited number of withdrawals from the account every month. This product is great for no risk savings and for people who want to earn interest on money they may need immediately for an emergency with no penalties for withdrawal.


Pros and Cons for Each Product


1) Mutual Funds:

Pro: A potential higher rate of return over a CD or money market.
Con: Fees are charged for owning a mutual fund and there is a risk, degree of which depending on the fund invested.

2) Variable or Fixed Annuities:

Pro: It grows on tax-deferred basis (there are no taxes until you withdraw).
Con: If you need to access money earlier, there are penalties. Annuities have a surrender period, meaning you cannot touch it for a certain period of time. It can be fixed or variable, and it can also have expenses. Fixed annuities have lower fees than variable. Variable annuities have the chance to offer a higher rate of return.

3) Stocks:

Pro: Stocks offer an opportunity for a higher appreciation in value over fixed investments, and clients can get dividends that can be paid out or reinvested.
Con: High risk associated with owning stocks.

4) CD’s:

Pro: There is no risk.
Con: If you need access within the term of the CD, there are penalties. Currently CDs have very low rates.

5) Professionally Managed Accounts:

Pro: A manager is hired to manage a client’s investments, and that manager will have discretion over all trades in the account.
Con: High expense to manage the account. Less control for client. Expense depends on amount of money invested and the portfolio composition. Starting investment is $50,000.

6) Money Market Account:

Pro: higher rate than a savings account but difference is not that big.
Con: Interest rate is in between a savings and CD account.


Chase Brokerage/Investment Fees and Rates


1) Mutual Funds: $24.95 per trade for no-load funds.

2) Annuities: standard fees from 1.5% to 3% annually, depending on many different variables.

3) Stocks: $9.99 per online trade for up to 1,000 shares, plus $0.02 for each share in trade over 1,000.

4) CD’s: rates right now are 0.25% for a year.

5) Professionally Managed Accounts: depends on many different variables. Read Chase Private Client review.

6) Money Market Account: the rate is 0.10%.


Chase Self Directed Brokerage Accounts Commissions


Unlike managed accounts, with Chase's self directed brokerage account clients can buy and sell stocks, ETFs, bonds, and mutual funds online on their own. The pricing is not that bad: $9.99 for online stock and ETFs trades, and $24.95 for online no-load mutual funds transactions (broker-assisted trades are $55 for stocks and $34.95 for mutual funds). Additionally, there is a surcharge of $0.02 for each share in trade over 1,000.

Below we provide the table that shows how J.P. Morgan Chase brokerage account fees compare to the largest online brokers in the United States:

Broker Fees Stocks/ETFs
Commissions
Mutual Funds
Commissions
Options
Commissions
Maintenance
Fees
IRA Setup
and Annual Fees
Ally Invest Fees $4.95 $9.95 $4.95 + $0.65 per contract $0 $0
Scottrade Fees $7 $17 $7 + $0.70 per contract $0 $0
Ameritrade Fees $6.95 $49.95 $6.95 + $0.75 per contract $0 $0
Etrade Fees $6.95 $19.99 $6.95 + $0.75 per contract $0 $0
Fidelity Fees $4.95 $49.95 ($75 for some funds) $4.95 + $0.65 per contract $0 $0
Schwab Fees $4.95 $76 ($0 to sell) $4.95 + $0.65 per contract $0 $0
J.P. Morgan Chase $9.99 $24.95 n/a varies varies


Chase Self Directed Brokerage Accounts Services


Other Chase's brokerage account fees are: $50 for outgoing account transfers; $10 for wire transfers; $6 for statement copies; and $25 foreign equity surcharge. The bank also charges account maintenance fee which most other brokerage firms do not have. Corporate, municipal and agency bonds as well as U.S. Treasuries can be purchased on a net yield basis.

There is a reason why Chase doesn't advertise or features its self-directed brokerage service on its own website. The firm is not really that interested in gaining self-directed clients and instead is focused in attracting high net worth customers (with $250,000 or more) to offer them managed investment accounts. As the result their website and tools for self-directed clients are rudimentary. Chase's brokerage customers also complain about poorly trained and disinterested customer service as well as high fees.

With Chase brokerage account investors will NOT get powerful investment product screeners, advanced trading platform, rich selection of third party independent investment research, options trading, or investor education amenities which are now standard in most major online brokers. The bank also does not offer virtual trading, online user community, or advanced orders that some of the most innovative online trading firms now provide.

Broker Review Investment Products Trading Tools Customer Service Research Overall Rating
Ally Invest
Scottrade
TD Ameritrade
Etrade
Fidelity
Charles Schwab
J.P. Morgan Chase


Conclusion


As you see, the rates you get on your investments with J.P. Morgan Chase are extremely low, and the fees the bank is charging customers on the investment accounts are on the higher side.

If you are not excited about paying Chase's fees, there are plenty of well-established, highly rated brokerage firms to choose from (such as TD Ameritrade, Ally Invest or Scottrade) offering no-fee regular brokerage accounts and IRAs, most available investment products (including no-load, commission-free mutual funds), great trading tools, and very reasonable pricing.



Chase Brokerage reviewed by Brokerage-Review.com on . Rating: 2



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