Investment Accounts & Services

Here are details on our investment products and services, as well as those we offer from third party providers.  We provide this information to help you understand our investment products and services so that you can choose what works best for you.

Different types of investment accounts

Different types of brokerage accounts

Brokerage account fees

Different Types of Investment Management Accounts

Investment Management Account Fees

Related Brokerage and Investment Management Services

Different Types of Investment Accounts

The Private Bank offers both brokerage and investment management services. There are important differences between the two, as outlined below, including the types of services provided, the costs, and how they are regulated. We encourage you to speak with your J.P. Morgan team 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 where you retain the final investment decision on all transactions in the account.

  • The Private Bank will handle the brokerage and related functions for your account, which may include, for example, holding securities and cash; executing, clearing and settling transactions; collecting and processing dividends; issuing buy and sell confirmations and statements; and looking after the various details incidental to the clearing and carrying of accounts. Brokerage execution and clearing services for the account are offered by JPMS. Custody and other banking services for the account are offered by JPMCB, unless otherwise noted in the relevant account agreements. For additional information regarding the services JPMS provides with respect to brokerage accounts, please refer to your J.P. Morgan Brokerage Account Agreement and 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 for each transaction and other applicable fees. For example, you generally pay JPMS a commission for each equity transaction and a mark-up/mark-down for bond transactions. Therefore, in a brokerage account, your total costs will normally 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 that compensate us based on what you buy.

When acting as a broker-dealer:

  • We assist 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, rule, or regulation.1 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 the trade confirmations we send to you.
  • When we make recommendations to you, we do so in a broker-dealer capacity, not as your investment manager, unless we have entered into a written investment management agreement with you.

Discretionary Investment Management Accounts

Discretionary Investment Management Accounts are discretionary accounts in which you authorize JPMCB to act as your discretionary investment manager, and give JPMCB the power to invest on your behalf by buying and selling securities in your account and making all investment decisions for your account without consulting you. You also authorize JPMCB to take any actions necessary to open and maintain your account and to complete and pay for executions or other transactions for your account and, if we deem it appropriate, to appoint a JPMCB affiliate or a third-party manager to act as a sub-advisor on your account.

For these investment management programs and services, you generally pay a fee based on the value of your account’s assets. Additionally, trade execution and other applicable fees may also apply. All fees will be outlined in our agreements with you, including the fee schedule for investment management accounts.

In providing investment management services, JPMCB has a fiduciary duty to you as set forth in 12 CFR Part 9 governing Fiduciary Duties of National Banks. JPMCB is subject to regulation and supervision by the Office of the Comptroller of the Currency and is a member of the Federal Reserve System. As a fiduciary, we are required to act in what we reasonably believe to be your best interests based on your investment objectives. We must not place our own interests ahead of your interests, and must treat all of our investment management clients fairly and equitably without unfairly favoring one client to the disadvantage of another.

As part of our fiduciary duty to you, among other things, 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 must obtain your informed consent before engaging in transactions with you for your own account, the account of an affiliate, or the account of another client (to the extent otherwise permitted under applicable federal law). We act as an investment manager only when we have entered into a written agreement with you that describes our advisory relationship and obligations to you.

Both Brokerage and Investment Management Accounts

In both brokerage and investment management 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—for example, investment management fees assessed by the manager of the funds. There may also be other fees and expenses, which will be described in agreements and disclosures provided to you. You can find additional informationabo ut brokerage fees and expenses in Section 3, Brokerage Products.

While we always take care in developing and making recommendations to you as a broker-dealer or investment manager, 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 a product or service, the risks associated with the product and other important information.

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Different Types of Brokerage Accounts

We offer full service brokerage accounts. You can also open a self-directed brokerage account through our You Invest Trade platform. You can also have both types of accounts. The main differences between them are how you work with us, who you work with, the types of investment options and services available to you, and the costs.

With full service brokerage accounts, you work with your J.P. Morgan team, which can provide goals-based advice, guidance, and help with specific investment needs. With self-directed brokerage accounts, which we call J.P. Morgan Self-Directed Investing accounts, you will make your own investment decisions and will primarily engage with us online.

As a result of these differences, the fees that you pay will likely vary. Some account types, strategies, products and services may only be offered in one of the service models. For example, certain mutual fund share classes, investment strategies or account types may only be available through J.P. Morgan Self-Directed Investing, while others may only be available through your J.P. Morgan team in a full service brokerage 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 a J.P. Morgan team, 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. Any recommendations we make are considered part of your brokerage services—there is no separate fee charged for our advice or recommendations.
  • You will primarily engage with your J.P. Morgan team on the phone or in-person.
  • In this account, you can trade a variety of investments, which we describe in the section about Brokerage Products.
  • We must act in your best interest at the time we make a securities recommendation to you.
  • An account can hold cash for liquidity, funding, future investments or emergency funds.

J.P. Morgan Self-Directed Investing

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

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Brokerage Account Fees

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

Please note that the fees outlined in this Guide are specific to U.S. products and services. If you are a client of the International Private Bank, refer to the Full Service Brokerage with Custody Accounts Fee Schedule—International Clients in our Appendix, or contact your J.P. Morgan team for information on fees and expenses relating to the products and services available to you. Please also be aware that some account types, and certain products and services, may not be available to all clients.

Full Service Brokerage Account

  • Please see the published fee schedule for Full Service Brokerage Accounts—United States in the Appendix.
  • For product-specific fees and other charges, please see the section about Brokerage Products.
  • Fees are subject to change at any time at the option of J.P. Morgan.

J.P. Morgan Self-Directed Investing

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Different Types of Investment Management Accounts

We offer discretionary account management and advice on the selection of investment managers, mutual funds and ETFs, and other securities offered through our investment management programs. You also have the option to invest online in a J.P. Morgan–managed portfolio through a  discretionary J.P. Morgan Automated Investing account.

Discretionary Investment Management Accounts

  • Discretionary Investment Management Accounts are accounts in which you authorize JPMCB to act as your investment manager. You give JPMCB the power to invest on your behalf by buying and selling securities in your account, and making all investment decisions for your account.

Discretionary J.P. Morgan Automated Investing Accounts

  • Invest online and via the J.P. Morgan 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.jpmorgan.com/automated-investing for more information.

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Investment Management Account Fees

Fees and costs associated with full service investment management services provided by JPMCB are detailed in the fee schedule for investment management accounts, or available upon request.

Fees and costs associated with Automated Investing can be found at www.jpmorgan.com/automated-investing-pricing.

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Related Brokerage and Investment Management Services

The following are some additional products and services we may provide.

Custody

Description:

  • The Private Bank provides custody services through JPMCB.
  • JPMCB, acting as your custodian, will hold cash, securities and other property on your behalf, settle transactions and perform other services incidental to the custody and safekeeping of your assets. This may include processing corporate actions, income and dividend payments, foreign exchange, proxies, asset reporting and other asset services.
  • JPMCB may also make purchases, sales and deliveries in accordance with instructions given by you.
  • For more information regarding the custody services offered by JPMCB, please refer to the Asset Account Agreement.

Fees and Costs:

  • JPMCB charges asset and transaction-based fees for its custody services as disclosed on the Custody Fee Schedule provided at account opening. A copy of the Custody Fee Schedule is available upon request.
  • Unless otherwise indicated, when you open a custody account with JPMCB that is linked to brokerage services offered through JPMS, the custody fees charged by JPMCB will be in addition to, but separate from, any commissions and fees charged by JPMS for its brokerage services.

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 comprising pre-tax dollars, including investment gain 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), but any 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 published fee schedule for J.P. Morgan Private Bank Full Service Brokerage Accounts in the Appendix.

529 Plan (Full Service Only)

Description:

  • A 529 Plan is an investment account that offers:
    • Tax-deferred 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 529 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, sales charges vary by plan. Please see Brokerage Products for more information on mutual funds share classes and sales charges.

Margin (Full Service Only)

Description:

  • Margin involves borrowing money from JPMS in order to purchase an investment.
  • Securities in your margin account are JPMS’s 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 issuing a margin call and/or selling securities or other assets in any of your accounts held with us in order to maintain the required equity in the account.
  • You J.P. Morgan team is not compensated based on interest paid for your margin loans.
  • Before trading stocks in a margin account, you should carefully review the Margin Disclosure Statement at https://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 charged3 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. The amount of interest charged to an account can be viewed on its monthly statement.

  • Up to $100,000: Brokers’ Call Loan Rate + 1.75%
  • $100,001–$500,000: Brokers’ Call Loan Rate + 1.50%
  • $500,001–$1,000,000: Brokers’ Call Loan Rate + 1.00%
  • More than $1,000,000: Brokers’ Call Loan Rate + 0.50%

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References

1.

A fiduciary standard for broker-dealers may be set forth under the rules of certain states or as a condition to maintaining certain certifications. See “State-Specific Information ,” where applicable.

2.

JPMS has retained an affiliate, J.P. Morgan Investment Management Inc. (“JPMIM”) to have investment discretion over the construction of the model portfolios (including fund selection and replacements) for You Invest Portfolios. JPMS retains trading authority to implement the model portfolios and place orders consistent with each client’s Selected Portfolio.

3.

The annual rate of interest charged to clients on credit from JPMS varies upon the amount of the debit balance and is based on the “Brokers’ Call Loan Rate” plus a percentage. The broker call rate is computed on an average daily basis and determined by JPMS for this purpose in accordance with prevailing money market conditions. In making such determination, JPMS considers, among other things, the rates quoted for brokers’ loans by one or more New York banks that are members of the New York Clearing House Association.