Chase Brokerage Accounts: The Complete Guide For 2019

Article Approved By Banking Expert

This article has been reviewed and deemed factual by our content auditor with 8 years of banking experience.

Article Approved By Banking Expert

This article has been reviewed and deemed factual by our content auditor with 8 years of banking experience.

With so many sites available for DIY investors, where do Chase brokerage accounts stack up?

That’s what you’ll discover today in our detailed guide to Chase Brokerage Accounts.

Online brokerages are normally known for assisting investors in selecting and building portfolios from the ground up.

For DIY investors, Chase has a do-it-yourself investment platform. It’s called You Invest, and it provides a great platform for those interested in self-directed trading, which can easily be started for free, especially if you already bank with Chase.

Before you begin, you should learn all there is to know about the Chase You Invest platform. That way you’ll feel comfortable with navigating through their site before making your first trade.

Afterward, you can open up a brokerage account in a few easy steps.

About Chase Brokerage Accounts

Their platform allows:
  • Users to test it out before you acquire any costs
  • Gives experienced traders to become familiar with the platform and begin investing at their own pace
  • Provides simplified diversification
  • Offers both retirement and taxable investment options
Although Chase makes investment opportunities easy for DIY investors, like all online brokerage sites, Chase “You Invest” also has its pros and cons. Here are some more details:

Pros

  • $0 is the minimum amount Chase requires to open an account
  • The first 100 trades are free of commission fees
  • After the first 100 trades, the commission fee is low-cost at $2.95 per trade
  • The cash balance earns interest
  • The investment platform can be accessed online and through the mobile app

Cons

  • The first 100 commission-free trades are only limited to ETFs and US stocks
  • The first 100 commission free trades are only good for the first year
  • A $5,000 minimum to use the Portfolio Builder Tool

Chase You Invest is user-friendly and great for beginners.

But those without adequate investment dollars will not be able to participate in all of the site’s features.

Chase Brokerage Account Types

Chase Brokerage Accounts

  1. Tax Accounts: The platform makes taxable and tax advantage self-directed accounts available.
  2. Retirement Accounts: Investors can decide between a Roth IRA or a traditional retirement account.
  3. Individual or Joint Accounts: The platform allows both individual or joint accounts.
  4. Minimum Account Amounts: Whichever account is selected, all can be opened with a minimum of $0.
  5. Commission Fees: The platform allows free trades, but only for the first 100 trades, and with restrictions.

A note on the retirement accounts: there are some limitations concerning the types of retirement accounts that you can select. For example, this platform does not allow inherited IRAs, rollover accounts, or self-employed retirement accounts, such as SEP IRAs or Solo 401(K) retirement accounts.

Chase Brokerage Account Tiers

Many online self-directed brokerage accounts have multiple types of accounts.

Some investors find this beneficial, but others do not. For example, some platforms set certain threshold levels, such as below $250,000 and so forth. If the threshold is exceeded, they’re advanced to the next tier.

Some of these multiple account tiers also charge lower or higher fees based on how high or low the account balance is.

Some online platforms only make benefits such as tax loss harvesting or automatic rebalancing available after an account reaches a certain threshold.

Both of these features are pretty common and work well for those who want to stay on track with their portfolios. However, Chase You Invest does not offer multiple account tiers. They treat all accounts the same, regardless of the account balance.

Investment Options

There are a wide variety of ways to invest using the Chase You Invest platform including any of the following:

  • Mutual funds
  • Exchange traded funds (ETFs)
  • Stocks, and
  • Fixed income (also known as bonds)

This platform also offers other features that can assist you in creating more of a diversified portfolio through its Portfolio Builder Tool. This tool has a few features that can be beneficial to you, and it can be accessed through the Chase app.

Once the app is downloaded, just answer a few questions so the portfolio builder can design a portfolio allocation based on the answers you provided.

The Portfolio Builder Tool then sets up a target portfolio allocation based on the answers you provide. This tool allows you to review all of the investment opportunities along with the associated fees and the most recent selling price. You can then determine whether or not you want to invest in a particular portfolio.

Investment Types

The type of investments that are available consist of ETFs as well as stocks from a wide variety of asset classes.
These include both U.S. and international stocks as well as core fixed incomes and other commodities. The only drawback of the Portfolio Builder Tool is that it requires you to have an investment of at least $5,000 prior to using it.
So, if you were planning to open an account with a zero balance, you’ll notice that you can not use the Portfolio Builder Tool without a minimum balance of at least $5,000.
In addition to that, the Portfolio Builder Tool only works as a means for you to determine what your investments are. It does serve as a guide in a sense, but don’t rely on it as you would rely on the advice from a professional investment advisor.

Managed Portfolios

The Chase You Invest Platform does not provide expert advice or a managed investment advisor.

If you are seeking expert advice to assist with your investment decisions, then you may consider using a managed portfolio-based platform: Professional money managers have developed these platforms.

If you have some reservations in this regard, other online brokerage companies are available that can address your managed portfolio needs. Chase does not currently offer this service but plans to in the future. For more information, to get updates, or if you want to get on their waiting list, contact Chase.

Chase Brokerage Account Fees

When they are investing using various online brokerage platforms, most investors set financial goals.

These goals are often circumvented when fees come into play. Fees can take a big chunk of your gains and the overall return on your investment. Even if you experience high returns, once the fees kick in, the remaining balance begins to dwindle.

The Chase You Invest platform is a lot less aggressive when it comes to fees.

It is one of the few trading platforms that have relaxed standards when it comes to trading fees.

For example, when an investor initially signs up with Chase You Invest, they receive 100 commission free trades.

However, the manner in which the trades get applied to your account has a lot to do with whether or not you currently have a Chase bank account.

Free Commission

The following is how the free commission structure works on the Chase You Invest Platform based on the status of your current Chase account (Standard, Relationship, or Premier):
  • Year 1 – First 100 trades are free for stocks and ETF trades
  • Every Year – First 100 trades are free for stocks and ETF trades each year
  • An unlimited amount of commission-free stock and ETF trades

The above is available to all those who open a Chase You Invest account or those who have an existing Chase Premier Plus checking account.

Also available for all Chase Private Clients, J.P. Morgan Private Bank, J.P. Morgan Securities Clients, and Chase Sapphire Banking Clients.

Current Chase clients that have either a standard or a relationship status with Chase will be charged a transaction fee of $2.95 for each stock and ETF trade after all of the free ones have been used. Those who make mutual fund trades will not have a fee; however, those who make fixed income trades will have a fee of $1 for each bond.

Maintenance Fees

In almost all cases, online broker platforms charge annual account maintenance fees, but this is where the Chase platform is different. Chase does not charge account maintenance fees or minimum balance fees.
The thing to keep in mind, however, is that although the majority of the maintenance fees offered by this bank are free, if you need to solicit the assistance of a Chase You Invest representative to help you make a trade, you will be charged a fee.

Get the best business checking account–all with little to no fees.

Those needing assistance with stock and ETF trades will be charged $25 for each trade. Assistance with mutual funds has a fee of $20. Those needing assistance with bond trades will be charged $1.

In addition to online trading fees, other fees can incur on the Chase You Invest platform that investors should be mindful of. They include the following:

The expense ratio for individual funds and ETFs. The investment fund itself charges this particular fee. It is charged annually directly from the fund and not from Chase.

Fees by Chase consist of the following:

  • Transferring accounts from your You Invest Account
  • Terminating your You Invest Account
  • Wire transfers to or from your account
  • Any return checks from deposits made using checks

Tax Loss Harvesting and Automatic Rebalancing

When tax loss harvesting and automatic rebalancing takes place, two things begin to occur that affect your portfolio:

  1. It assists with minimizing tax bills that incur for gains.
  2. It keeps your allocation at a certain level, typically at an even keel.

These two things are important for those who have set financial goals for their portfolios. Those who are paying more in taxes than they actually need to are likely not keeping as much of their investment returns as they could.

Tax loss harvesting is included with best robo-advisor.

Those who are not rebalancing their accounts regularly could be taking on more risk than is wise (or maybe even not enough) with the investments that are being made.

Chase Brokerage Review Summary

Ready to take the plunge? If you are ready to begin using the Chase You Invest platform or if you’ve got some reservations, the best thing you should do is compare the Chase You Invest online platform with other platforms.

Open to other investing options? Read our Stash review.

In doing so, remember to compare fees and costs, types of investment accounts that are available, the investment choices, and so forth. Upon performing your own research you should find that the Chase You Invest Platform has a lot to offer to both new and seasoned investors who want to meet their different trading needs.

Samuel Popejoy
Samuel is an accomplished blog author and copywriter. With wide-ranging knowledge that covers practically every subject, Samuel delivers useful and engaging content that helps people live better lives.

Leave a Comment

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.