JPMorgan is trying to lure more clients for its commission-free self-directed online investing clients by tapping existing clients and offering credits to new ones.
The company announced on Wednesday that it would deposit a $50 bonus into its clients’ accounts for each person they refer who opens a Self-Directed Investing account, as long as they use the “refer-a-friend link.” Existing clients can earn up to $500 in credits for such referrals annually, according to the firm.
New clients to the self-directed investing platform, meanwhile, will get a bonus deposited into their accounts based on the amount of money they bring to the firm, JPMorgan says.
Those funding the account with at least $25,000 will earn $125, while accounts with at least $100,000 will earn $300 and those with $250,000 or more will receive the maximum offer of $625, according to the firm.
JPMorgan rolled out limited commission-free trading in 2018, in a bid to compete with discount brokerages as well as new offerings from more direct competitors such as Bank of America.
But the competition for clients only heated up. The following year, unlimited commission-free trading started becoming the norm as Charles Schwab, E*Trade, Fidelity Investments and TD Ameritrade announced they were dropping trading commissions in a matter of days, followed by a slew of others, including, most recently, Citigroup.
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