This section is intended to provide you with a general description of the various products for brokerage accounts. Before making any investment, each client should evaluate if the product is suitable for their needs and financial situations, and their ability to take on risks.
As a reminder, while we will take appropriate care in developing and making recommendations to you, securities and investment products 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 consult any available offering documents for any security we recommend for a discussion of risks associated with the product. We can provide those documents to you, or help you find them.
What is a stock?
There are different types of stocks:
Fees/Commissions:
Risks and other Relevant Information:
An investment in stock involves a number of risks. The following section discusses some of those risks but is not meant to be exhaustive and the risks discussed do not comprise a complete list of all the risks relating to equity securities. You should consider these risks as you choose your investments.
Resource(s) to Obtain Additional Information:
Please see available documents for any security we recommend for a discussion of risks associated with the product. We can provide those documents to you, or help you find them.
Fees/Markups
ASSET CLASS ($/BOND) | MAXIMUM MARK-UP |
High Grade High Yield Treasury Bills Treasury Notes/Bonds Municipal Bonds |
20.00 25.00 0.50 6.25 25.00 |
Risks and other Relevant Information:
Although fixed income investments are generally perceived to be more conservative than stocks, they are not without risk. Below are some of the major risks associated with fixed income securities.
Resource(s) to Obtain Additional Information:
Please refer to the prospectuses and other offering materials for additional information.
Description:
What are listed options?
Listed Options are a type of derivative security traded on an exchange. Specifically, options are contracts that grant the right, but not the obligation, to buy or sell an underlying asset at a set price on or before a certain date.
There are three types of listed options:
Fees:
Please see the Commission Schedule for Brokerage Accounts.
Restrictions:
Listed option exchanges may, from time to time, restrict the types of transactions that are permitted.
Risks and other Relevant Information:
Options trading involves additional risk, is not suitable for all investors and is subject to approval. Before buying and selling options, investors should understand all their rights and obligations associated with trading options.
For example, the risk of selling (writing) options is considerably greater than the risk involved in buying options. If you buy an option, you cannot lose more than the premium. If you sell (write) an option, the risk can be unlimited. Fluctuations in currency exchange rates may affect the value of any over-the-counter (OTC) option on securities trading in, or denominated in, a foreign currency, as well as the value of any payment or delivery of securities in connection with such OTC options.
In addition, options can be structured to allow for significant leverage. The use of leverage may have the effect of magnifying an investor’s losses or gains and can cause an investor to be highly exposed to risk with very little capital or cash investment. As a result, a relatively small, unexpected change in the notional amount of an investor’s position could have a much larger adverse impact on the principal amount invested.
For information about options trading, including the risks, please review the Characteristics and Risks of Standardized Options which you can view at www.theocc.com/about/publications/character-risks.jsp.
JPMS or an affiliate may act as Primary Market Maker or Competitive Market Maker in option trades executed on an options exchange, and may have a position (long or short) in such securities and may be on the opposite side of public orders executed in such securities.
Description:
What is a Structured Investment?
Fees:
Restrictions:
Risks and other Relevant Information:
Resource(s) to Obtain Additional Information:
Please review available offering documents for any security we recommend for a discussion of risks associated with Structured Products. We can provide those documents to you, or help you find them.
Description:
What is a Mutual Fund?
Fees and Expenses:
Fees and charges paid directly by investors - share classes
Fees and expenses paid to or indirectly through the mutual fund
For complete information about mutual fund fees associated with specific funds, you should refer to the fund’s prospectus and SAI. You can find information about sales charges in the standardized fee table located near the front of a fund’s prospectus under the heading “Shareholder Fees” and information about the expenses you pay indirectly through fund assets in the standardized expense table under the heading “Annual Fund Operating Expenses”.
Compensation JPMS receives from mutual fund companies2
JPMS may also receive a payment as a percentage of:
In addition, JPMS may receive a fixed annual payment from the mutual fund of up to $50,000.
JPMS may allow representatives of all its approved mutual funds, including the J.P. Morgan Funds, access to its advisors for educational and promotional purposes, subject to conditions imposed by JPMS. Some funds allocate more resources for these purposes, which could cause advisors to become more familiar with those funds and focus on them when meeting with clients. Funds or their affiliates may pay for sales meetings, seminars and conferences JPMS holds in conducting its business, subject to conditions imposed by JPMS. The extent to which a fund is willing to pay for these activities is solely determined by the fund’s advisers or affiliates, not by JPMS. You can find additional information at www.chase.com/content/dam/chasecom/en/investments/documents/understanding-revenue-sharing.pdf.
Advisor compensation for mutual funds sales
Depending on the type of mutual fund and share class you buy, as well as account type, advisors receive 12b-1 fees and a portion of sales charges paid to JPMS by mutual fund companies up to a maximum of 4% regardless of the prospectus charges. In some instances, where there is no sales charge to a client, advisors may also receive a finder’s fee, paid by a mutual fund’s distributor, which is up-front, “time of sale” compensation. For more information, please refer to the applicable mutual fund prospectus.
Proprietary mutual funds and affiliates service providers
Affiliates of JPMS provide investment management and other services, such as shareholder servicing, custody, fund accounting, administration, distribution and securities lending to the J.P. Morgan Mutual Funds for which those affiliates receive fees. Therefore, J.P. Morgan as a firm will receive greater compensation if its clients buy shares of the J.P. Morgan Mutual Funds than if they buy shares of non-affiliated mutual funds.
Resource(s) to Obtain Additional Information:
Please consult a fund’s prospectus, SAI and any other available offering documents for any fund we recommend, for a discussion of risks associated with the product. You can also find additional information about investing in mutual funds at www.chase.com/mutualfunds.
Description:
What is a Money Market Fund?
Fees and Expenses:
Fees and expenses paid to or indirectly through the money market fund
Compensation J.P. Morgan receives from money market fund companies3
Restrictions:
The money market funds and share classes available through JPMS are limited and will change from time to time.It is important to work with your advisor to determine which funds and share classes are available for purchase in your account.
Disclosures Language:
An investment in a money market fund is not insured or guaranteed by the FDIC or any other government agency, nor is it guaranteed by any private entity, such as an investment adviser or custodian. Although money market funds strive to preserve the value of the investment, it is possible to lose money by investing in them.
Resource(s) to Obtain Additional Information:
For complete information about money market fund risks and fees associated with specific funds, you should refer to the fund’s prospectus and SAI.
Description:
What are ETPs?
Fees:
Please see the Commission Schedule for Brokerage accounts.
Restrictions:
JPMS may restrict activity in certain types of financial instruments including, but not limited to, crypto-linked instruments and shares of mutual funds and ETPs that are considered inverse, leveraged or volatility-linked. Please contact your advisor for product availability through your full-service brokerage account.
Risks and other Relevant Information:
Resource(s) to Obtain Additional Information:
Please refer to the prospectuses for additional information.
Description:
What is an annuity?
Types of Annuities
Fixed Annuities
Fixed Index Annuities
Single Premium Immediate Annuities (SPIAs)
Variable Annuities
Buffer Annuities
Advisory Fee-Based Variable Annuities
Note: As with any annuity, guarantees are based on the claims-paying ability of the issuing insurance company.
Fees:
Annuity product fees, including contingent deferred sales charges, are collected by the insurance carrier. Depending on the type of annuity and the issuing insurance company, clients will incur certain product fees associated with their annuity. These fees range from fees to cover the cost of insurance to investment management fees. The following outlines the fees typically incurred on annuities by product type:
Fixed rate for term annuities
Fixed rate for term with a living benefit rider
Fixed Index Annuities:
Variable Annuities
Buffer Annuities
Advisory Fee-Based Variable Annuities
Compensation:
Paid to CIA
A portion of the compensation received by CIA is paid to your advisor as noted in the section “Paid to advisors”.
Paid to advisors
All advisor commissions stated above are gross commissions; the actual net payment the advisor receives will vary.
Restrictions:
Risks and other Relevant Information:
Fixed Annuities
Fixed Index Annuities
Single Premium Immediate Annuities (SPIAs)
Variable Annuities
Buffer Annuities
Resource(s) to Obtain Additional Information:
The firm leading the underwriting process may bring together several firms (or “syndicate”) to distribute the new offering.
The fee ranges quoted in this section are generally for the funds approved for purchase on the JPMS full-service brokerage platform. Similar fees may be taken by J.P. Morgan in connection with other funds held upon client request, and applicable rates may differ.
The fee ranges quoted in this section are generally for the funds approved for purchase on the JPMS full-service brokerage platform. Similar fees may be taken by J.P. Morgan in connection with other funds held upon client request, and applicable rates may differ.