JPMorgan Chase, the biggest U.S. bank, is launching a new retail investing service that will offer free trades to customers, as pressure mounts on Wall Street to lower trading fees.
The service, called You Invest, will offer about 47 million customers at least 100 free trades in the first year, a spokesperson for the company told FOX Business on Tuesday. Beyond those 100 free transactions, it will cost $2.95 per trade.
You Invest will be available to all individuals who subscribe to JPMorgan’s mobile banking app and those who use its website. There are no account minimums.
Investors who maintain larger accounts with the bank, valued at $250,000 or more, will have access to unlimited free trades.
All users will also gain access to the bank’s equity research.
The service will be available beginning next week as the bank looks to both offer more services to users on its platform and attract new individuals who may not have thought they had enough resources to invest. JPMorgan chief Jamie Dimon hinted that such a move might be in the pipeline at an investor conference in 2016.
The new service puts pressure on low-cost rivals like Charles Schwab and E-Trade. Competitors were trading lower during Tuesday’s session.
|JPM||JPMORGAN CHASE & CO.||166.08||-0.90||-0.54%|
|SCHW||THE CHARLES SCHWAB CORP.||76.18||-1.20||-1.55%|
JPMorgan’s move reflects growing pressure to lower the costs associated with investing.
Robinhood Markets launched a free trading app in 2013, aimed at attracting millennial investors.
Earlier this month, Fidelity broke ground when it launched two no-fee funds, giving more investors access to both domestic and global markets.