JPMorgan Chase will offer free online trades to customers

There's a new 800-pound gorilla in the world of free online stock trading: JPMorgan Chase, the nation's larg...

Posted: Aug 21, 2018 2:19 PM
Updated: Aug 21, 2018 2:19 PM

There's a new 800-pound gorilla in the world of free online stock trading: JPMorgan Chase, the nation's largest bank.

The new service, which JPMorgan plans to launch next week, will offer 100 free trades a year to all Chase customers, and unlimited free trades to its customers who maintain larger balances in their accounts.

The bank had previously charged $24.95 for each online trade. But JPMorgan faces increased competition from free brokerage services, including Robinhood Financial, as well as low-cost services, such as E*Trade and Charles Schwab.

JPMorgan already has about 60 million American customers, amounting to nearly half of US households, and 47 million of those customers use mobile or online banking services. But the bank admits it hasn't focused much online trading before now.

That means the bank won't take much of a hit to its revenue from cutting the fees so drastically. It believes it will benefit from having stronger relationships with its customers.

Free trading could lock in customers who do their primary banking, have a car loan or mortgage with the bank or a branded credit card provided by Chase, such as the Amazon Visa.

"We think most of our customers have multiple financial relationships," said Jed Laskowitz, CEO of the bank's You Invest service. "We're very focused on delivering more service. All our analysis shows that those customers who do more than one thing with Chase will stay with us longer."

It's a similar model to Amazon Prime. Streaming video, music and cloud storage on top of Prime's two-day shipping has increased membership, and its existing customers shop more on Amazon.com. Chase hopes free trading will increase its customer base and drive members to use other JPMorgan services.

The bank denied this is a direct response to free offerings like Robinhood. JPMorgan has been working on developing a free trading offering for years, said spokesperson Darin Oduyoye. At an investor conference two years ago CEO Jamie Dimon had suggested he wanted to follow the example of Amazon Prime.

"If you're a good account, it's no different than Jeff Bezos doing the $99 Prime and adding services to it," said Dimon at that time.

Although JPMorgan Chase has a relationship with Amazon, including working with the online retailer on a new health insurance offering, some have suggested that Amazon could be eyeing weath management as its next area of expansion.

E*Trade and Schwab's stock prices fell on the news of JPMorgan's new offering.

Mississippi Coronavirus Cases

Data is updated nightly.

Cases: 308737

Reported Deaths: 7139
CountyCasesDeaths
DeSoto20901250
Hinds19953410
Harrison17551302
Rankin13358276
Jackson13141243
Madison9949211
Lee9886170
Jones8308161
Forrest7537147
Lauderdale7221237
Lowndes6286144
Lamar613284
Lafayette6063117
Washington5288133
Bolivar4775129
Oktibbeha457097
Panola4456103
Pearl River4433141
Warren4294118
Marshall4283101
Pontotoc417572
Monroe4061132
Union404675
Neshoba4001176
Lincoln3883109
Hancock373385
Leflore3470124
Sunflower330789
Tate325082
Pike3205105
Scott311272
Yazoo304769
Alcorn298865
Itawamba297477
Copiah293965
Coahoma290378
Simpson289486
Tippah285168
Prentiss276559
Marion266279
Leake261473
Wayne261441
Grenada256284
Covington254980
Adams246882
Newton245561
George238347
Winston226081
Tishomingo222467
Jasper219948
Attala213573
Chickasaw205257
Holmes186972
Clay183054
Stone179531
Clarke177576
Tallahatchie175940
Calhoun165231
Yalobusha159736
Smith159234
Walthall131043
Greene129633
Lawrence126623
Noxubee126533
Montgomery125742
Perry125238
Carroll120926
Amite120741
Webster113732
Jefferson Davis105432
Tunica103025
Claiborne101330
Benton97425
Kemper95628
Humphreys94432
Franklin82723
Quitman78916
Choctaw73717
Wilkinson64928
Jefferson64828
Sharkey49817
Issaquena1686
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Alabama Coronavirus Cases

Cases: 521201

Reported Deaths: 10736
CountyCasesDeaths
Jefferson753981490
Mobile39011799
Madison34002496
Tuscaloosa25329444
Montgomery23996567
Shelby23160239
Baldwin20674302
Lee15567165
Calhoun14330311
Morgan14152271
Etowah13677346
Marshall11988220
Houston10402278
Elmore10008200
Limestone9843147
Cullman9501189
St. Clair9449234
Lauderdale9254228
DeKalb8756181
Talladega8104171
Walker7126275
Jackson6751110
Autauga6748103
Blount6511134
Colbert6225130
Coffee5418113
Dale4771111
Russell429338
Franklin420582
Chilton4100109
Covington4059114
Tallapoosa3904146
Escambia389574
Dallas3522149
Chambers3513122
Clarke346760
Marion3072100
Pike306176
Lawrence295395
Winston273072
Bibb256059
Marengo248261
Geneva245975
Pickens233059
Barbour226255
Hale218675
Butler212867
Fayette209460
Henry188044
Cherokee182544
Randolph177041
Monroe172440
Washington164738
Macon155548
Clay150055
Crenshaw149457
Cleburne146341
Lamar139634
Lowndes136553
Wilcox124527
Bullock121540
Conecuh109428
Perry107626
Sumter103232
Coosa99428
Greene91334
Choctaw58724
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