You Invest by J.P. Morgan Review

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On August 29, 2018, J.P. Morgan Chase, a financial behemoth with over $2.6 trillion in assets, brought a new product – You Invest – to its customers.

The product offers an impressive collection of trading options, tools, and resources for investors to consider.

You Invest is a new entrant in the online brokerage industry, offering all customers 100 commission-free online stock and exchange-traded funds (ETFs) trades.

So, if you love free stuff, You Invest could be your ideal online brokerage platform. 

Let’s take a more in-depth look at this program and see what it has to offer.

You Invest Overview

What You Invest Offers

You Invest logoJ.P. Morgan Chase developed You Invest with the aim of eliminating barriers to investing.

To achieve that, the program offers $0 account minimums, $0 minimums on hundreds of funds including J.P. Morgan funds, and commission-free online stock and ETF trading.

You don’t have to be a Chase Bank customer to be able to use You Invest to purchase and sell stocks, mutual funds, ETFs, and bonds, but the number of free trades available to you will depend on your relationship with Chase Bank.

Namely, if you hold a Premier Plus Banking account, you will get 100 free trades a year. Conversely, if you have a Sapphire Banking or Chase Private Client account, you’ll enjoy unlimited free trades.

Opening a You Invest account is quite easy. It will not take you more than five minutes, and transferring funds between your Chase accounts happens in real-time.

Benefits of You Invest 

Once you are in, a Portfolio Builder tool will evaluate your tolerance to risk, and help you create and invest a diversified portfolio of ETFs and Stocks.

In summary, here’s what you stand to enjoy when you sign up for You Invest:

  • 100 commission-free online ETF and stock trades for a whole year.
  • After a year, all ETF and stocks trades will cost $2.95
  • Unlimited commission-free online ETF and stock trades for Sapphire Banking, J.P. Morgan Private Bank, Chase Private Client, and J.P. Morgan Securities customers.
  • Access to competitively priced online fixed income trading
  • Access to mutual funds with no commissions or transactions fees

Note that you may need to pay regulatory transaction fees.

How Does You Invest Work?

Account Set Up

For a Chase Bank customer, the You Invest app is conveniently accessible through the Chase Mobile Banking app.

However, if you’re currently not a Chase customer, you’ll need to visit the Chase website to open your You Invest account. Keep in mind that you must be aged 18 or above and have a valid social security number to be able to open a You Invest account.

You may choose to use your You Invest accounts as a standard brokerage account, but you do have retirement account options.

You could open up a Roth or traditional individual retirement account (IRA). If you are not sure what account is appropriate for your situation, consider seeking advice from a tax expert.

Trading Terms

This investing app allows you to trade stocks, bonds, mutual funds, ETFs, and certificate of deposits (CDs).

The lowest amount you can have in your account is $0, and the app allows you to make 100 trades for free in the first year. After exhausting all your free 100 trades, you’ll be paying $2.95 per trade.

This price is lower than what most online brokerages charge, adding to the long list of benefits of You Invest.

Portfolio Builder

You Invest gives you access to a free Portfolio Builder tool if you have a balance of $5,000 and above in your account. This tool is designed to analyze your ETFs and stocks to determine if the entire portfolio is commensurate with your risk profile.

Your risk profile refers to your investment time horizon, your financial goals, and your perceived capability to withstand market fluctuations.

While the portfolio builder isn’t supposed to push you into choosing certain investments, it will notify you if you pick investment options that are inconsistent with your risk profile.

Cost of You Invest

You won’t pay a dime to download the You Invest app.

In fact, if you are already a Chase customer, you can easily access it from the Mobile banking app. This app also doesn’t charge maintenance fees or other charges that you’ll see in other investing apps.

However, you will need to pay $2.95 for every trade when purchasing ETFs and stocks once you use all your 100 free trades. If you are a Chase Private Client, J.P. Morgan Private Bank, Chase Sapphire Banking, or J.P. Morgan Securities client, you won’t have to pay for trades.

You also won’t be charged if you are purchasing mutual funds via the You Invest app. If you are looking to buy bonds, however, you’ll need to pay $1 for a single bond.

Keep in mind that you’re required to purchase bonds ranging from $10 to $250. If you are investing in fixed income, you’ll need to pay $1 for a trade.

Alternatives to You Invest

What Makes Chase You Invest Unique?

Affordable Account Monitoring

What sets Chase You Invest apart from its competitors is that it helps investors monitor their total portfolio while granting them the flexibility to choose from a wide range of investments.

Additionally, not many investing apps will allow you to purchase and sell assets without paying a dime as You Invest does.

Educational Resources

You Invest is also trying to ensure that investors are knowledgeable. It has a variety of informational articles in its “learning and insights” section. If you are new to investing, these articles can help you understand your portfolios.

J.P. Morgan is the product of J.P. Morgan Chase, a giant in the financial industry, which means you’re getting incredibly best research and information 

Targeted Investment Strategy

If you are looking for investments that can help you attain your financial goals, then You Invest is your ideal investing app. It will help you find the right investments based on your goals.

All you need to do is to navigate to the “find investments” section on the app. Then you can search for investments consistent with your parameters. You can adjust the parameters according to elements such as asset classes, risk profile, and management fees.

One great aspect of the app is that it allows you to review stocks, mutual funds, ETFs, and fixed income investments that fit your parameters. J.P. Morgan Chase is among the few brokerage firms that are employing technology to ensure that investors find the right investments based on their goals.

Advantages and Disadvantages of You Invest

Pros of Chase You Invest

  • Free trades: Every new user gets 100 free trades per year and  Chase Private Clients receive unlimited free trades
  • App: You can conveniently trade on the Chase mobile app
  • Convenience: Existing Chase customers get universal account management service
  • Resources: Access to J.P. Morgan’s award-winning equity research that covers at least 1,200 companies in the United States

Cons of Chase You Invest

  • Fees: You pay $2.95 per trade once 100 free trades are exhausted
  • Trading options: No futures, options, or forex trading. You Invest only allows trading of ETFs, mutual funds, stocks, and certain bonds

Bottom Line

By offering no account minimums, no minimums on J.P. Morgan funds, and commission-free online ETF and stock trading, You Invest has lived to its promise of eliminating barriers to investing. It has made it easy for even millennials to venture into stocks investing.

This app is ideal for individuals who are somewhat acquainted with investing and are looking to further explore the world of investing by trying options such as individual stocks and ETFs.

Offering 100 free trades a year, this investing app provides an excellent opportunity to evaluate various investment options without having to burn a lot of money.

This app is a fascinating addition in the online brokerage field. You will probably enjoy trading with it, but if it doesn’t meet your expectations, just know there are several alternatives out there that you can give a try.

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