That nation’s largest bank is about to make a huge splash in the world of online stock trading.
J.P Morgan is rolling out a digital investing service next week that comes bundled with free or discounted trades, a sophisticated portfolio-building tool and no-fee access to the bank’s stock research. Anyone who downloads J.P. Morgan’s mobile banking app or uses its website can get at least 100 free trades in the first year.
The bank had been charging $24.95 per trade but realized it couldn’t continue in today’s world of retail investing with the likes of Robinhood offering free online trading and Schwab & E*Trade offering discounted trading.
J.P Morgan currently has about 47 million customers who use mobile or online banking. All of those people will have instant access to free online trading. By comparison, Robinhood has about 5 million users and was valued at $5.6 billion. That gives J.P Morgan nearly 10 times the amount of customers not including any new customers who’ll jump ship because of this service.
The inspiration for this move? In the past, J.P Morgan CEO Jamie Dimon has hinted that he wanted to follow the techniques of Amazon Prime where Jeff Bezos keeps adding more and more services to increase his customer base. J.P Morgan appears to be following suit in adding more services to attract more customers and building stronger relationships with current customers.
This new service will be officially rolled out next week.