Today's investors have a full range of brokers from which to choose. However, no two brokers are alike or can fit the needs of every investor. Charles Schwab and J.P. Morgan Self-Directed Investing are the perfect examples. They each represent big names in investing, but are quite different when it comes to offerings.
In this overview of Charles Schwab vs. J.P. Morgan Self-Directed Investing, we examine each broker and compare the two. When you finish reading this comparison, you will have a clearer picture of what each offers, from fees to available investments. The goal is to gain a better understanding of which broker might be right for you.
Charles Schwab vs. J.P. Morgan Self-Directed Investing: At a glance
| Offer | J.P. Morgan Self-Directed Investing |
Charles Schwab |
|---|---|---|
| Rating | Rating Rating image, 4.0 out of 5 stars. 4.0/5Our ratings are based on a 5 star scale.5 stars equals Best.4 stars equals Excellent.3 stars equals Good.2 stars equals Fair.1 star equals Poor.We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs. | Rating Rating image, 4.5 out of 5 stars. 4.5/5Our ratings are based on a 5 star scale.5 stars equals Best.4 stars equals Excellent.3 stars equals Good.2 stars equals Fair.1 star equals Poor.We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs. |
| Commissions | Commissions $0 per trade online $0 per trade | Commissions |
| Account Minimum | Account Minimum | Account Minimum |
| Next Steps | Open Account for J.P. Morgan Self-Directed Investing Read Full Review | Read Review |
Charles Schwab vs. J.P. Morgan Self-Directed Investing: Commissions & fees
Both brokers have done a good job of keeping costs low. For example, neither company charges a commission for trading stocks, ETFs, or options (although investors do pay $0.65 per options contract). Mutual funds are also available for purchase without a commission.
Charles Schwab and J.P. Morgan Self-Directed Investing do charge a fee for moving money out of your account, although Schwab's fee is $25 lower than J.P. Morgan's.
| Charles Schwab | J.P. Morgan Self-Directed Investing | |
|---|---|---|
| Stock & ETF commissions | $0 | $0 |
| Options commissions | $0 + $0.65 per contract | $0 + $0.65 per contract |
| Crypto commissions | N/A | N/A |
| Mutual fund commissions | $0 | $0 |
| Account transfer fee | $50 ($0 for partial transfers) | $75 |
| Account maintenance fee | N/A | N/A |
Data source: Schwab and J.P. Morgan.
Charles Schwab vs. J.P. Morgan Self-Directed Investing: Investments available
Neither Charles Schwab nor J.P. Morgan Self-Directed Investing offers direct access to crypto trading at this time, although that may be subject to change. Take a look at the following table, and you'll see that Schwab has J.P. Morgan beat when it comes to other investment options. Schwab gives investors the opportunity to trade fractional shares, futures, and currencies, while J.P. Morgan Self-Directed Investing does not.
And when it comes to mutual fund options, Charles Schwab also comes out on top, with nearly 17,000 to choose from, compared to J.P. Morgan Self-Directed Investing's "several thousand."
| Charles Schwab | J.P. Morgan Self-Directed Investing | |
|---|---|---|
| Stocks and ETFs | Yes | Yes |
| Fractional shares | Yes | No |
| Options | Yes | Yes |
| Mutual funds | Yes | Yes |
| CDs | Yes | Yes |
| Bonds | Yes | Yes |
| Futures | Yes | No |
| Crypto | No | No |
| Currencies | Yes | No |
Data source: Schwab and J.P. Morgan.
Alternatives to Consider
We recommend comparing brokerage options to ensure the account you're selecting is the best fit for you. To make your search easier, here's a short list of our best trading platforms of 2024.
| Account | Fees | Account Minimum | |
|---|---|---|---|
Rating image, 4.5 out of 5 stars. 4.5/5Our ratings are based on a 5 star scale.5 stars equals Best.4 stars equals Excellent.3 stars equals Good.2 stars equals Fair.1 star equals Poor.We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs. | $0 for stocks, $0 for options contracts | $0 | Open Account for SoFi Active Investing |
Rating image, 4.5 out of 5 stars. 4.5/5Our ratings are based on a 5 star scale.5 stars equals Best.4 stars equals Excellent.3 stars equals Good.2 stars equals Fair.1 star equals Poor.We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs. | $0 for stocks, ETFs, and options; up to $6.99 monthly for Robinhood Gold | $0 | Open Account for Robinhood |
Rating image, 4.5 out of 5 stars. 4.5/5Our ratings are based on a 5 star scale.5 stars equals Best.4 stars equals Excellent.3 stars equals Good.2 stars equals Fair.1 star equals Poor.We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs. | Commission-free; other fees apply | $0 | Open Account for E*TRADE |
Charles Schwab vs. J.P. Morgan Self-Directed Investing: Account types available
Simply put, Charles Schwab gives investors more to choose from. While both brokers provide traditional and Roth IRAs, only Charles Schwab offers other retirement options. You can open a custodial account at Schwab, but not at J.P. Morgan. The same is true if you want to open a joint tenant account.
| Charles Schwab | J.P. Morgan Self-Directed Investing | |
|---|---|---|
| Taxable brokerage | Yes | Yes |
| Joint tenant | Yes | No |
| Margin | Yes | Yes |
| Robo-advisor | Yes | Yes |
| Traditional IRA | Yes | Yes |
| Roth IRA | Yes | Yes |
| Other IRAs/Retirement | Yes, SEP-IRA, SIMPLE IRA, Solo 401(k) | No |
| Custodial | Yes, the Schwab One® Custodial Account allows you to make financial gifts to a minor while teaching the child how investments work. | No |
| Checking | Yes | Yes |
| Savings | Yes | Yes |
| Credit card | Yes, under the American Express Platinum Card® for Schwab | No, although you can manage your Chase credit cards, bank accounts, and all other J.P. Morgan investment accounts in one place |
Data source: Schwab and J.P. Morgan
Charles Schwab vs. J.P. Morgan Self-Directed Investing: Mobile app and trading platforms
For some, the majority of their investing begins online. Here, we're taking a closer look at what you can expect from Charles Schwab and J.P. Morgan Self-Directed Investing's mobile app and trading platforms.
Charles Schwab
Platform highlights
Charles Schwab's platform is another area in which the company shines. Its platform is designed to address the needs of investors, whether they're novice or experienced traders.
- StreetSmart Edge: Desktop-based platform featuring a customizable layout so you can show only what's important to you and how you invest.
- thinkorswim: Geared toward advanced investors, thinkorswim is especially good at helping investors take on options trades.
- Schwab Stock Slices: These are laid out to allow anyone (from novice to advanced traders) to buy and sell fractional shares of stock.
- Extensive research library: Easy-to-find research on just about any question a new investor may have.
Mobile app
Opinions regarding Schwab's mobile apps are both hot and cold. iOS users give it 4.8 out of 5 stars, but Android users rate the app 2.3.
J.P. Morgan Self-Directed Investing
Platform highlights
The most impressive feature of J.P. Morgan's platform is its portfolio builder. The broker refers to these tools as "portfolio construction tools." Regardless of what they're called, these tools could provide a real leg-up for investors.
The tools include a portfolio analysis, which gives you a fresh perspective on how well your portfolio is balanced. There's also an investment comparison tool that allows you to analyze investments instantly. Finally, there's a tool that builds hypothetical bond ladders, letting you see in advance what it would be like to build one of your own.
The fly in the ointment is that access to the portfolio builders requires a minimum investment of $2,500, leaving many young investors out in the cold.
Mobile app
Access to the account is available through the Chase Mobile® Bank & Invest app. iOS users give the app an excellent score of 4.8 out of 5 stars, and Android users offer a score of 4.4.
Final take
We like that J.P. Morgan Self-Directed Investing allows ordinary people without a ton of money a place to invest. However, to access the best features on the J.P. Morgan platform, investors must have at least $2,500 to get started.
On the other hand, Charles Schwab's platform has a wealth of features anyone can use without spending more money. Charles Schwab provides more investing opportunities and earned the highest ranking in overall customer satisfaction in the J.D. Power 2023 U.S. Full-Service Investor Satisfaction Study. These factors make it the clear winner.
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- Charles Schwab
- J.P. Morgan Self-Directed Investing
Ratings Methodology
2024 Award Winner
Our Rating:
Rating image, 4.5 out of 5 stars.
4.5/5Our ratings are based on a 5 star scale.5 stars equals Best.4 stars equals Excellent.3 stars equals Good.2 stars equals Fair.1 star equals Poor.We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs. = Best = Excellent = Good = Fair = Poor
Bottom Line
Charles Schwab pioneered the low-cost brokerage model decades ago, and that legacy continues with its lineup of no-commission-fee offerings. The robust lineup of account types, investment vehicles, and high quality app round out the stacked feature set.
Fees:
$0 stock, ETF, and Schwab Mutual Fund OneSource® trades. No fees to buy fractional shares.
Account Minimum:
$0, ($5 minimum per fractional share transaction)
Read Review
2024 Award Winner
Our Rating:
Rating image, 4.0 out of 5 stars.
4.0/5Our ratings are based on a 5 star scale.5 stars equals Best.4 stars equals Excellent.3 stars equals Good.2 stars equals Fair.1 star equals Poor.We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs. = Best = Excellent = Good = Fair = Poor
Bottom Line
J.P. Morgan Investing is one of those rare brokers that charges zero transaction fees to buy and sell mutual funds. It's easy to use, even though it combines self-directed investing and an optional robo-advisory platform in one app. It's no-frills compared to other brokers, and it's most convenient for Chase customers. Pick this platform for low mutual fund fees and a no-nonsense interface.
Read Full Review
Fees:
$0 per trade
Account Minimum:
$0
Special Offer
Earn a bonus up to $700 when you open and fund a J.P. Morgan Self-Directed Investing account (retirement or general) with qualifying new money by 10/11/2024.
Open Account for J.P. Morgan Self-Directed Investing
OnJ.P. Morgan Self-Directed Investing'sSecure Website.
