JPMorgan Chase offers 100 free trades to attract new investors
New York (AFP)
JPMorgan Chase plans a big push into online investing offering 100 free trades and low fees in a bid to attract a new generation of investors, a spokesman said Tuesday.
JPMorgan will launch the "You Invest" program next week linking it to the mobile phone app of Chase Bank, JPMorgan's retail bank, spokesman Darin Oduyoye said.
Oduyoye said the bank hopes to spark more investing among existing customers, including millennials who may have shied from the stock market.
But JPMorgan also aspires to attract clients from competing firms, he said.
"In the Chase mobile app, you now have the opportunity to do your banking and checking," Oduyoye said. "And now we are offering opportunity to do online trading and investing for free."
The first 100 trades will be commission-free, and after that customers will be charged $2.95 a trade, which is 60 percent below the fee of most online brokerage firms, Oduyoye said.
JPMorgan Chief Executive Jamie Dimon has hinted such a program was in the works, drawing parallels to Amazon's "Prime" service which has significantly broadened the online retailer's relationship with customers, while posing competitive challenges to grocers, television producers and others.
JPMorgan already has some 47 million digital customers which it can reach with the new app.
The prospect of this new disruption to the online brokerage industry, shares of Charles Schwab and TD Ameritrade fell sharply Tuesday.
Shares of JPMorgan rose 1.5 percent to $116.33, while Charles Schwab fell 2.0 percent and TD Ameritrade slumped 6.1 percent.
© 2018 AFP