Learn Best Way to Manage your J.P. Morgan Investments

• 16 May 2020 | 1071 Views | By Abhinav Mishra

One thing which is on every investor’s mind is – Trade cost. There are a lot of people who start their day with a $4 Starbucks coffee and it adds to their monthly expense just like paying $8 or $10 per trade. Just like coffee drinkers can save big if they are ready to compromise on the taste and quality, traders can save big by reducing their per trade cost. In this article, we are going to learn about You Invest.

What is You Invest by JP Morgan?

You Invest is a discount broker based in the US and started in 2018 by JP Morgan. JP Morgan is a US investment bank founded in 1985 and is regulated by the Securities and Exchange Commission (SEC). The main reason why You Invest has become popular in less than two years of operation is that the parent company has a long track record, has a banking background, is a listed company, regulated by top-tier regulators, and discloses its financials regularly.

The other reason for its popularity and growth is – It gives novice investors a chance to select the best securities, learn about markets, and plan for future goals like retirement. Through You Invest, traders can buy and sell individual stocks and exchange-traded funds (known as ETFs) on an online trading platform.

Why should you choose You Invest over others? Is JPM a good long term investment?

You Invest is a DIY brokerage account offering affordable options trading, commission-free equities, and access to fixed-income securities like corporate and government bonds. Here are some advantages the platform offers:

Advantages for current chase customers

If you have an existing account with Chase, you will have a very easy and smooth onboarding with You Invest. Your application will be vetted quickly and you can access brokerage accounts from the same app you use for banking. The cherry on the cake is that you can streamline all your financial processes like deposit checks, pay bills, and buy stocks using the same app. If you are a frequent user of Chase online platform and mobile app, you will get comfortable very quickly for trading.

The education

If you are a new investor, you will not find a better online guide. You Invest does a great job breaking down the basics and helping you find the right investments as per your profile. Their ‘Learning and Insight’ section provides market commentary in very easy language.

It also provides helpful guides on understanding different types of securities. New investors can learn about retirement planning, budgeting for stocks, and tax filing all in one place.

Professional portfolio management at affordable prices

You Invest professionally managed investment may not be the cheapest in the market but when you combine affordability and minimum required, they are surely among the top few.

Chase Fees

As an intelligent trader, you need to consider both trading fees and non-trading fees of your brokerage company:

• Trading fees consist of fees when you trade. This consists of commissions, financing rates, spreads, and conversion fees.
• Non-trading fees include charges not directly related to trading but feels like inactivity fees and withdrawal fees.

If you are dealing with US stock, the fee is low when compared to other online brokers. They charge $2.95 per trade and the first 100 US-based stock trades are commission-free.

Mutual funds fees are low and they don’t charge for any trade. It is a superb and unlikely feature for a broker considering experiences with other competitors. For instance, Robinhood doesn’t offer mutual funds at all. 

You also don’t charge anything for inactivity. If you are a customer of Chase Private Client / Chase Sapphire Banking / J.P. Morgan Securities line of business / J.P. Morgan Private Bank, you have to pay $0 commissions for all online trades, not limited to the quantity or the time.

Read about JP Morgan Chase’s Contract Intelligence (COiN).

Opening Account with You Invest

With You Invest, you can open an account with $0. This is great for investors who are looking to invest small amounts. If you want to use their Portfolio Builder feature, you have to have a minimum account balance of $2500. There are two options with You Invest for account opening:

Is now a good time to Invest?

Trade on your own with the ‘You Invest Trade’ option. This option lets you easily research, trade, and manage your investments and provide access to online tools and hundreds of investments.

• Minimum account balance: $0
• Unlimited commission-free online stock, ETF, and options1 Footnote trades
• Options contract and other fees may apply

You will have to choose one of below account types:

Brokerage

With this option, you will get an individual taxable brokerage account and you will get a flexible experience with no trade and minimum balance.

Traditional IRA

This is a retirement account where your contribution may be tax-deductible. However, you will have to pay taxes when you withdraw money from the account.

Roth IRA

This is another type of retirement account where you have an option to make a contribution to the after-tax dollar. In addition, you don’t have to pay federal tax on qualified distributions.

You Invest Portfolios

It is managed and designed with the expertise and technology of JP Morgan so you can invest online with more ease and confidence.

• Minimum investment: $500
• Annual advisory fee: 0.35%

Deposit fees and options

If you already have a You Invest account or if you transfer using ACH then depositing is free. The drawback with You Invest is that the platform charges you $30 if you do wire transfers from other banks. The conditions are similar to its competitor like Robinhood.

Read: How is Robinhood Making Investing More Investor Friendly

You can also use account transfer to transfer your cash and/or securities from an external account besides the money transfer. For account transfers, You Invest charges $75.

You Invest Trading platform

As mentioned at the start of the article, the You Invest platform uses the same web trading platform as JP Morgan. The web trading platform supports two languages – English and Spanish.

Some features are as below:

Look & Feel – The trading platform is user friendly and provides a good user experience to the customers. Unlike some of its competitors, the platform is not customizable.

Search Functions – The search function can be rated as above average. When you start typing a company’s name or asset’s ticker, a list of the relevant results appears.

Login – You can login into your You Invest account through one-step login authentication. You get a code during registration via text, email, or phone and you can register your new device later with this code. This could have been replaced with two-step authentication which is always a better option.

Portfolio and fee reports – The platform has a clear portfolio report but lacks a clear fee report. The pie charts help you understand to what extent your portfolio is diversified which is very useful.

How do I invest with Chase?

You Invest offers wide investment options to its customers. 

• Stocks and ETFs – With You Invest you have an option to invest in over 5000 stocks and 2000 ETFs which though is less than interactive brokers but same as its competitors. The ETFs and stock cover only stocks from US stock exchanges. You can’t trade with low-priced stocks or “penny stocks”.
• Funds – You Invest offers ~3,300 mutual funds from 60 different fund providers to its customers.
• Bonds – You Invest offers over 22,000 bond options.

Customer Support

This is a really important parameter especially for new investors who require initial guidance. You can reach their customer support via secure message, phone, social media, or in person. Messages and phone calls are received from 7 a.m. to 11 p.m. Facebook and Twitter messages usually receive a quicker response than the secure message system on the platform and phone volume is high on nights and weekends. JP Morgan Chase also has physical locations in all but 11 states. 

Important question Investors have – Is You Invest regulated?

Yes, it is regulated by the Securities and Exchange Commission (SEC), Financial Industry Regulatory Authority (FINRA).

It is also important to know – How are you protected? This is important to know because the investor protection amount and the regulator differ from entity to entity. 

Is JP Morgan a good investment company?

With You Invest this is not an issue though as all customers are covered by J.P. Morgan Securities LLC. 

You get the SIPC limit protection of $500,000 from which cash is limited to $250,000. Not all investments are protected by SIPC. In general, SIPC covers stocks, bonds, notes, mutual funds, and other investment company shares, and other registered securities. It does not cover instruments such as unregistered investment contracts, fixed annuity contracts, unregistered limited partnerships, currency, and interests in gold, silver, or other commodity futures contracts or commodity options.

The conclusion

The account opening is full digital, easy, and fast. With a strong parent company, it can be trusted. The fees are great and you get multiple trading options. The drawback is that it is available only for US clients. If you are looking for online trading platforms, you should definitely check You Invest.