RobinHood, meet the Sheriff of Nottingham. JP Morgan Chase is entering the retail investing business, launching an app that lets its millions of customers make free trades.
Launching next week, You Invest will give some 47 million JP Morgan customers a minimum of 100 free stock or ETF trades in a year, as well as access to a portfolio building tool and the bank’s stock research, according to CNBC.
The move puts JP Morgan up against a host of fintech firms which have entered the retail investing field in recent years, winning over younger users. Market leader RobinHood now has more than five million customers for its free trading app, giving it a valuation north of $5 billion.
Kelli Keough, global head, digital wealth management, JP Morgan, told CNBC that You Invest is targeted at millennials who have not invested before and Chase customers who invest through other providers.
From next week, customers will be able to sign up in a matter of minutes via the bank’s app and build a portfolio, read research and make 100 free trades in the first year. After that, trades are $2.95 each, still considerably cheaper than rivals such as E*Trade and TD Ameritrade.
In January, JP Morgan will go further, launching a robo-advisor under the You Invest brand, which could also be free.