Investment Accounts & Services

Different Types of Investment Accounts

JPMS offers both brokerage and investment advisory services. There are important differences between the two, including the types of services provided, the costs and how they are regulated. Below is a general overview of the main differences. We encourage you to speak with your advisor if you have any questions.

Brokerage Accounts

Brokerage accounts and related services primarily involve assisting you with the purchase and sale of securities based on your instructions. These accounts have a transaction-based cost structure and you retain the final investment decision on all transactions in the account.

• As part of a brokerage relationship, JPMS will handle the brokerage and related functions for your account, which may include: holding securities and cash; executing, clearing and settling transactions; collecting and processing dividends; issuing buy and sell confirmations and client statements; and looking after the various details associated with the clearing and carrying of accounts. Unless you have specified otherwise, JPMS will act as custodian of the assets in all brokerage accounts. For additional information regarding the services JPMS provides with respect to brokerage accounts, please refer to your J.P. Morgan Securities Customer Agreement or other applicable service-related documents, which may be amended from time to time. You may request additional copies of these agreements or other documents at any time.
•  In exchange for our brokerage services, you generally pay a commission or other charge for each transaction, and other applicable fees. For example, you generally pay JPMS a commission for each equity transaction, a mark-up/mark-down for bond transactions and a sales charge for mutual fund transactions. Therefore, in a brokerage account, your total costs will generally increase or decrease as a result of the frequency of transactions in the account and the type of securities you purchase. We may also be paid by third parties who compensate us based on what you buy.

When acting as a broker-dealer:

• We provide assistance to you with the purchase and sale of securities based on your instructions. Your approval will be required before any securities transaction takes place. We do not have discretion to act on your behalf in a brokerage account. This means that although we may provide advice or recommendations regarding the purchase or sale of securities, we do not make investment decisions for you, manage your investments or monitor your account.
• We are not acting as a fiduciary under any federal law, federal rule or federal regulation¹. As such, we are permitted to sell securities to you and buy securities from you through our own account as principal, and act as agent for you and another client in the same trade. We will disclose this on trade confirmations we send to you.
• When we make recommendations to you we do so in a broker-dealer capacity, not as your investment advisor, unless we have entered into a written investment advisory contract with you.

Investment Advisory Accounts

When acting as an investment advisor, we offer a variety of programs and services including discretionary and non-discretionary advisory programs. If you participate in a discretionary advisory program, we will have authority to make trades and other investment decisions on your behalf without seeking your prior approval. As part of our investment advisory programs and services, we provide ongoing account management and monitoring. 

For investment advisory programs and services, you generally pay a fee based on the value of your account assets. Trade execution and other applicable fees may also apply. All fees will be outlined in our agreements with you.

While serving as your investment advisor, we are acting as a fiduciary. As part of our fiduciary duty to you, we are required to make full and fair disclosure of all material facts relating to our advisory relationship with you, including conflicts between our interests and your interests, and we must obtain your informed consent before engaging in transactions with you for our own account or that of an affiliate or another client (to the extent permitted under applicable federal law). We act as an investment advisor only when we have entered into a written agreement with you that describes our advisory relationship and obligations to you.

Both Brokerage and Investment Advisory Accounts

In both brokerage and investment advisory accounts that include professionally managed investment products such as mutual funds or exchange-traded funds (ETFs), you will be charged additional operating expenses that are reflected in the product’s share price. Additional expenses include, for example, investment management fees assessed by the manager of the funds. There may also be other fees and expenses in addition to those outlined above as described in agreements and disclosures provided to you. You can find additional information about brokerage fees and expenses in the section about Brokerage Products.

While we will take care in developing and making recommendations to you as a broker-dealer or investment advisor, securities involve risk and you may lose money. There is no guarantee that you will meet your investment goals or that our recommended investment strategy will perform as anticipated. Please review all of the documents you are provided for the details of that product or service, the risks associated with the product and other important information.

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Different Types of Brokerage Accounts

You can choose between a full-service and a self-directed brokerage account. The main differences between them are how you work with us, who you work with and the types of investment options and services available to you.

With full-service brokerage accounts, you can work with an advisor who can provide goals-based advice, guidance and help with specific investment needs. For self-directed brokerage, you can open a You Invest^SM Trade account where you will make your own decisions and will primarily engage with us online.

As a result of these differences, the fees that you pay will vary.

Some account types, strategies, products and services may only be offered in one of the service models. For instance, certain mutual fund share classes, investment strategies or account types may only be available through You Invest Trade and others just through your advisor in a full-service account. You can open multiple accounts and choose to work with us in different ways depending on your objectives in each account.

Full Service Brokerage Account

• Designed for clients who wish to receive advice and guidance from an advisor, but who want to make the final investment decision on all transactions. For example, we may recommend the purchase of a security in your account, but you make the final decision about whether or not to accept our recommendation.
• These accounts have a transaction-based cost structure, however, any recommendation we make is considered part of your brokerage services and we do not charge a separate fee for this advice.
• You will primarily engage with a dedicated advisor who is located in a Chase branch or with a team of Financial Consultants available by phone, known as our National Branch team.
• In this account you can trade a variety of investments, which we describe in the section on Brokerage Products. Please note that you will not be able to invest in variable annuities or structured investments in brokerage accounts opened or supported by our National Branch team.
• We must act in your best interest at the time we make a securities recommendation to you.
• Account can additionally hold cash for liquidity, funding for future investments or for emergency funds.

Self-Directed Brokerage Account (You Invest Trade)

• Designed for individual clients who wish to trade online themselves, with access to insights and research; accounts may include taxable brokerage accounts, traditional IRAs, and Roth IRAs.
• We will not provide investment advice or offer any opinion about the suitability of any security, order, transaction or strategy.
• You will primarily engage with us digitally through chase.com or the Chase Mobile® app.
• In this account, you trade online in products including U.S. equities, ETFs, mutual funds, options and fixed income securities.
• You will make investment decisions and transactions based on your own evaluation of your personal financial situation, needs, risk tolerance and investment objective(s).
• We do not have a general obligation to act in your best interest and will not make recommendations to you.
• Account can additionally hold cash for liquidity, funding for future investments or for emergency funds.

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Brokerage Account Fees

We charge certain account fees or other amounts in the normal course of providing services or products to you. These may include fees for certain administrative services.

Full Service Brokerage Account

Please see the Fee & Commission Schedules for Brokerage Accounts.

• Fees and charges may vary from one account to another based on a variety of factors. All such fees and charges are deducted from your linked bank account or brokerage account and are subject to change periodically.
• For product specific fees and other charges, please see the section on Brokerage Products.

Self-Directed Brokerage Account (You Invest Trade)

Please visit www.chase.com/personal/investments/you-invest/pricing for information on fees and commissions.

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Different Types of Advisory Accounts

In addition to brokerage accounts, clients have the ability to invest in a number of advisory programs, including discretionary and non-discretionary investment advisory programs, where they can receive advice on the selection of investment managers, mutual funds, ETFs and other securities offered through our investment advisory programs. You also have the option to invest online in a J.P. Morgan-managed portfolio through a discretionary You Invest Portfolios advisory account. Please note that our National Branch team currently offers access to just one discretionary advisory program: J.P. Morgan Core Advisory Portfolio.    

Discretionary Investment Advisory Account

• Account in which you authorize JPMS and/or another affiliated or unaffiliated Portfolio Manager to act as your investment advisor.
• You give JPMS and/or the Portfolio Manager the power to invest on your behalf by buying and selling securities in your account and making all investment decisions for your account.  

Non-Discretionary Investment Advisory Account

• Account in which you have sole discretion as to the purchase and sale of assets.
• Your advisor and/or JPMS gives you advice about securities that you may buy and sell, but you do not give JPMS the authority to invest on your behalf.
• You are responsible for those investment decisions over the assets invested in those accounts. 

Discretionary You Invest Portfolios Advisory Account

• Invest online and on the Chase Mobile® app.
• You select the model that fits you best. Portfolios range from conservative to aggressive and are constructed from J.P. Morgan ETFs².
• Our technology tracks your portfolio daily and rebalances as needed.
• Visit www.chase.com/personal/investments/you-invest for more information.

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Advisory Account Fees

Fees and costs associated with our full-service advisory programs are available on request or at www.chase.com/personal/investments/advisory-program.

Fees and costs associated with You Invest Portfolios can be found at www.chase.com/personal/investments/you-invest/pricing.

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Related Brokerage and Advisory Services

Some additional products and services we provide include:

Retirement Accounts

Description:

We offer Individual Retirement Accounts to our clients, including:

• Traditional IRAs - a type of tax-advantaged retirement account where your contributions may be tax-deductible, and any investment gains will not be taxed while in the IRA. When you withdraw your money you will have to pay taxes on any amounts withdrawn comprised of pre-tax dollars, including investment gains and deductible contributions.
• Roth IRAs - a type of tax-advantaged retirement account where your contributions are made with after-tax dollars (if you are eligible to contribute). Investment gains will not be taxed while in the account and your withdrawals will be tax-free if they are qualified.

Fees and Costs:

Please see the Fee Schedule for Brokerage Accounts.

529 Plan (Full-service only)

Description:

An investment account that offers:

• Tax-deferred earnings growth and tax-free withdrawals when the funds are used to pay for a designated beneficiary’s qualified education expenses. Contributions may be tax-deductible in some states.
• Numerous professionally managed investment options from which to choose, including mutual funds and ETFs. You have full control over your plan’s investments and withdrawals.

Fees and Costs:

• 529 plans may charge a program management fee and/or a state administration fee (generally 0%–0.50% in aggregate), in addition to the expense ratios of the underlying mutual funds.
• Many plans charge an annual account maintenance fee (generally $20–$25 annually). Such plans often reduce or eliminate this fee for residents, clients who make automatic contributions or for accounts above a minimum balance, typically $25,000.
• 529 plan investments include A Shares and C Shares, and sales charges vary by plan. Please see the section about Brokerage Products, for more information on mutual fund share classes and sales charges.

Margin (Full- service only)

Description:

• Margin involves borrowing from JPMS in order to purchase an investment.
• Securities in your margin account are collateral for the loan to you. If the securities in your account decline in value, so does the value of the collateral supporting your loan, and, as a result, JPMS can take action, such as issue a margin call and/or sell securities or other assets in any of your accounts with us, in order to maintain the required equity in the account.
• A margin loan allows you to borrow against the value of securities you already own. JPMS will earn interest and may also earn additional compensation when extending margin. When you have a margin account with us, we are permitted to use certain securities in your account for, among other things, settling short sales and lending securities for short sales. We will generally be compensated in connection with these transactions. As a result, we have a financial incentive for you to incur margin debt to buy securities in your account.
• Your advisor is not compensated based on interest paid for your margin loans.
• Before trading in a margin account, you should carefully review the FINRA Margin Disclosure Statement, which you can view at www.finra.org/sites/default/files/InvestorDocument/p005895.pdf.

Fees and Costs:

Interest will be charged as provided below on any credit extended to you by JPMS for the purpose of purchasing, carrying or trading in any security. The annual rate of interest you are charged may fluctuate with changes in the stated base rates. The changes in rates resulting from this fluctuation will be made without prior notice to you.

• $0 to $25,000: JPMS Base Lending Rate³+ 2.5%
• $25,001 to $50,000: JPMS Base Lending Rate + 2%
• $50,001 to $100,000: JPMS Base Lending Rate + 1.5%
• $100,001 to $500,000: JPMS Base Lending Rate + 1.25% 
• $500,001 and above: JPMS Base Lending Rate + 1%
• Listed Option Margin Requirement Minimum account equity for clients writing options: $25,000
  
• Naked Equity Options Margin Requirement (per contract): Option premium plus 30% of Underlying Market Value (UMV) less Out-of-the-Money (OTM) amount.

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