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Is J.P. Morgan Self-Directed Investing free?

J.P. Morgan Self-Directed Investing is in fact a zero-commission broker when it comes to buying and selling US stocks. Zero commission is especially useful if you trade relatively low volumes, like buying stocks for less than $500 per trade, because you won't be hit with any minimum fees the broker might charge.

We should note that the payment-for-order-flow model, which is used by some zero-commission brokers to generate income (rather than relying on commissions), could potentially create a conflict of interest between you and your broker. This could result in trade execution (like routing your orders to specific market makers) that might be unfavorable for you under certain market conditions, especially when using market orders (as opposed to limit orders, which seem to be less affected).

Keep in mind that at some brokers, you could incur non-trading charges like withdrawal or inactivity fees. If you want to trade options, bonds or futures, then a transaction fee may also apply. Also, if you trade on margin, the margin rate charged by brokers can differ wildly. In the next chapter, we'll find out what these charges are at J.P. Morgan Self-Directed Investing and how they compare with fees charged by its closest competitors.

If you want to read our full review, including fees, deposit options and other platforms (like web and desktop) then skip to the J.P. Morgan Self-Directed Investing review.

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J.P. Morgan Self-Directed Investing fees
Overview of J.P. Morgan Self-Directed Investing fees and charges

It's safe to say that J.P. Morgan Self-Directed Investing's fees are low in general. They either don't charge a brokerage fee for things that other brokers do, or they only charge a small amount.

Here's a high-level overview of J.P. Morgan Self-Directed Investing's fees

J.P. Morgan Self-Directed Investing Fees snapshot
Assets Fee level Fee terms
US stock fee Low $0 per trade for US listed stocks. Foreign equity has a 0.20% commission.
EURUSD fee - Not available
US mutual fund fees Low $0 per trade
Inactivity fee Low No inactivity fee

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J.P. Morgan Self-Directed Investing fees
J.P. Morgan Self-Directed Investing fees explained

Online brokerages in general charge much lower brokerage fees than traditional brokerages do - this is largely because online brokerages' businesses can be much better scaled: from a purely technical standpoint, it doesn't make that much of a difference for them if they have 100 or 5,000 clients.

This is not to say, however, that they don't charge any fees at all. They make money by charging you various rates for various actions or events. Usually you need to keep an eye on the following three types of fees:

  • Trading fees - these are brokerage fees that you pay when you actually carry out a trade, like buying an Apple share or an ETF. What you pay is either a commission, a spread or a financing rate. Some brokers apply all of these.
    • A commission is either fixed or based on the traded volume.
    • A spread is the difference between the buy price and the sell price.
    • A financing rate or overnight rate is charged when you hold your leveraged positions for more than one day.
  • Non-trading fees. These are usually related to some operations you carry out in your account, such as depositing money, withdrawing money, or not trading for an extended period.

We compare J.P. Morgan Self-Directed Investing fees with its closest competitors, Vanguard and Ally Invest.

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J.P. Morgan Self-Directed Investing fees
J.P. Morgan Self-Directed Investing trading fees

J.P. Morgan Self-Directed Investing's trading fees are low, which makes it suitable for you even if you trade often (i.e. several times a week).

Let's break down trading fees according to the different asset classes available at J.P. Morgan Self-Directed Investing.

Trading fees

J.P. Morgan Self-Directed Investing's trading fees are low.

Stock fees and ETF fees

J.P. Morgan Self-Directed Investing has low stock trading fees.

Stock fees of a $2,000 trade
J.P. Morgan Self-Directed Investing Vanguard Ally Invest
US stock $0.0 $0.0 $0.0
UK stock - - -
German stock - - -

Fund fees

J.P. Morgan Self-Directed Investing fund fees are low.

Fees of a $2,000 fund purchase
J.P. Morgan Self-Directed Investing Vanguard Ally Invest
Mutual fund $0.0 $20.0 $10.0
EU mutual fund - - -

Bond fees

J.P. Morgan Self-Directed Investing has low bond fees.

Fees of a $10,000 bond trade
J.P. Morgan Self-Directed Investing Vanguard Ally Invest
US Treasury bond $0.0 $0.0 $10.0
EU government bond - - -

Options fees

J.P. Morgan Self-Directed Investing's options fees are low.

Options fees for 10 contracts
J.P. Morgan Self-Directed Investing Vanguard Ally Invest
US stock options $0.7 $10.0 $5.0
US stock index options $6.5 $10.0 $5.0
UK stock index options - - -
German stock index options - - -

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J.P. Morgan Self-Directed Investing fees
J.P. Morgan Self-Directed Investing non-trading fees

When it comes to non-trading fees, J.P. Morgan Self-Directed Investing is a rather cheap broker.

Non-trading fees include various brokerage fees and charges at J.P. Morgan Self-Directed Investing that are not related to buying or selling assets. This can be a withdrawal fee, deposit fee, inactivity fee or account fee.

A high-level overview of how J.P. Morgan Self-Directed Investing stacks up in terms of non-trading fees
J.P. Morgan Self-Directed Investing Vanguard Ally Invest
Withdrawal fee $0 $0 $0
Deposit fee $0 $0 $0
Inactivity fee No No No
Account fee No No No

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J.P. Morgan Self-Directed Investing fees
J.P. Morgan Self-Directed Investing deposit fee

Usually, brokers don't charge anything for deposits, and J.P. Morgan Self-Directed Investing is no different.

J.P. Morgan Self-Directed Investing deposit methods
J.P. Morgan Self-Directed Investing Vanguard Ally Invest
Bank transfer Yes Yes Yes
Credit/debit card No No No
Electronic wallets No No No
Deposit fee $0 $0 $0

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J.P. Morgan Self-Directed Investing fees
J.P. Morgan Self-Directed Investing withdrawal fee

J.P. Morgan Self-Directed Investing generally doesn't charge a withdrawal fee.

J.P. Morgan Self-Directed Investing withdrawal fees and options compared
J.P. Morgan Self-Directed Investing Vanguard Ally Invest
Bank transfer Yes Yes Yes
Credit/debit card No No No
Electronic wallets No No No
Withdrawal fee for bank transfer $0 $0 $0

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J.P. Morgan Self-Directed Investing fees
J.P. Morgan Self-Directed Investing inactivity fee

J.P. Morgan Self-Directed Investing does not apply an inactivity fee, which is great because your account won't be charged even if you do not trade for an extended period (like several months or years).

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Author of this article

Gyula Lencsés, CFA

Author of this article

Gyula Lencsés, CFA has more than 10 years of experience in the financial industry. He spent most of his career in the wealth management business as a portfolio manager of mutual funds. He has a trading experience in a wide range of asset classes, including stocks, ETFs, bonds, commodities, forex and derivatives markets.

Gyula Lencsés, CFA

Head of content

Gyula Lencsés, CFA has more than 10 years of experience in the financial industry. He spent most of his career in the wealth management business as a portfolio manager of mutual funds. He has a trading experience in a wide range of asset classes, including stocks, ETFs, bonds, commodities, forex and derivatives markets.

Everything you find on BrokerChooser is based on reliable data and unbiased information. We combine our 10+ years finance experience with readers feedback. Read more about our methodology

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