JPMorgan Chase is making it cheaper for mass-affluent investors to use its robo-advice services, with the rollout of free online trades and other changes, according to news reports.
The company is lowering minimums on its You Invest Portfolios account from $2,500 to $500, Reuters reports. Meanwhile, Chase clients with at least $15,000 in checking or those who meet other metrics will get unlimited free trading online and on the firm’s mobile app in stocks, options and exchange traded funds, according to the newswire. Previously, free trades were only available to Chase banking clients with at least $75,000 in their accounts and to Chase private client clients with at least $250,000, Reuters writes.
The goal of the move is to get Chase banking clients to become Chase investment clients as well, said Kelli Keough, global head of digital wealth management at JPMorgan, according to the newswire. The bank declined to provide data to Reuters on assets under management or number of clients for You Invest.
The company is also allowing accounts with less than $5,000 in ETFs and cash balances to trade both whole and fractional shares, according to JPMorgan’s latest Form ADV.
The firm notes, however, that “[f]ractional shares are typically unrecognized and illiquid outside of a client’s account. In the event of a liquidation or transfer of assets to another account, JPMS may convert such fractional shares to cash.”
Accounts with more than $5,000 in ETF and cash balances will be in whole shares, according to JPMorgan’s Form ADV.
The company is also piloting what it calls “Glidepath Portfolios,” which are “model portfolios managed in accordance with an asset allocation that will change over time as clients progress toward their designated retirement date,” according to the form. For those in the target date program whose designated purpose is retirement, JPMorgan will assign all of their individual retirement accounts to the Glidepath Portfolios except for accounts with 10 years or less to the end of a client’s designated retirement age range and those whose risk profile is listed as “conservative,” the company says.