If you are planning to open a new account for your investment, there is no scarcity of choices. Two famous options for latest investors are JP Morgan Investing provided by megabank JPMorgan Chase Chase and Robinhood which has an aim to make investing as user-friendly and economical as possible for everyone. In this JP Morgan vs Robinhood comparison we will have a look at the parallels and variations between the two so that you can evaluate if one might be an ideal fit for you.
JP Morgan Vs Robinhood: Commission And Fee
In this JP Morgan Vs Robinhood, let us have a look at the JP Morgan brokerage fees Robinhood and J.P. Morgan Investing both provide $0 commission ETF trades and stock, like most brokers do, and both have the similar $75 charge to transfer securities out of an account. However, that is where the similarities end.
For choices and digital currency investors, Robinhood is a winner. The $0.65 per contract charge of J.P. Morgan is in line with most of its brokerage peers, but on the contrary Robinhood is one of the few brokers that provides commission-free choices in trading. Along with that, Robinhood provides fee-free digital currency trading, while J.P. Morgan does not (most bank-affiliated brokers don’t offer direct cryptocurrency investment).
On the contrary, mutual fund commission is also a standout area for J.P. Morgan Investing. The company levies no commissions whatsoever for MF — not just those on a no-transaction-fee (NTF) list. This is a rare scene in the industry. Robinhood does not provide mutual fund investing at all.
JP Morgan Vs Robinhood: Investments Available
Robinhood is created as a simplified investing channel, and hence its selection of investment choices is somewhat limited. It provides ETFs, options, stocks, and digital currencies on its platform, but you cannot use the platform of Robinhood to invest in mutual funds. And while this investing company does provide an interest-bearing cash management option, it does not provide true fixed-income investments like CDs and bonds.
J.P. Morgan Investing provides more investment choices, that include stocks, options, ETFs, mutual funds, and bonds. And because of its connection with megabank J.P. Morgan Chase, users can deposit money into CDs via the firm also.
For new investors primarily, it is crucial to state that Robinhood provides the ability to purchase fractional shares of stock, while J.P. Morgan does not. This can be a big advantage for newer investors without huge money to invest. For instance, if Amazon stock is trading for $3,000 every share, you would require at least that much cash to purchase one share via J.P. Morgan. However, you can purchase a fractional share of Amazon with just a several dollars via Robinhood.
Neither platform provides foreign currency (forex) or futures trading, so if either is a portion of your investing strategy, you will need to look elsewhere.
Trading Platforms And Mobile Apps Of JP Morgan And Robinhood
Robinhood and J.P. Morgan Investing both provide a mobile investing app, but they are rather varied from one another. The trading app of Robinhood is designed to offer the most user-friendly way to purchase and sell stocks and choices. The app of J.P. Morgan is created as an all-in-one banking application, enabling users to access and handle their credit, banking, and investing JP Morgan brokerage account in a single application.
Robinhood provides a web-based trading channel, but is a mobile-first broker. It does not have sophisticated trading equipment, educational resources, or many of the other elements you would find on many other trading platforms. The trading platform provides several useful features, like its highly regarded Portfolio Builder equipment that can help investors build a portfolio to help meet their aims.
In this JP Morgan vs Robinhood it can be concluded that both Robinhood and J.P. Morgan Investing are great brokerage platforms with $0 trading charges on ETFs and stocks, but neither is apt for all investors. Neither JP Morgan commission-free trading nor Robinhood. In some scenarios, the decision is convenient. If you wish to invest in MF, for instance, J.P. Morgan Investing is undoubtedly the better of the two. On the contrary, if you want to purchase digital currencies as part of your investment strategy, Robinhood might be the better choice.