J.P. Morgan You Invest Review 2020

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Disclosure : INVESTMENT PRODUCTS: NOT A DEPOSIT • NOT FDIC INSURED • NO BANK GUARANTEE • MAY LOSE VALUE

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Updated on Friday, May 15, 2020

You Invest is J.P. Morgan’s foray into the investing space. It consists of two main products: You Invest Trade, which is an online brokerage account that allows you to trade Stocks, bonds, Mutual funds, ETFs and more; and a robo-advisor service called You Invest Portfolios that designs and manages your portfolios for you. Whether you’re looking to take online trading into your hands or want a curated portfolio from a robo-advisor, You Invest offers an array of options at varying price points.

What is You Invest Trade?

J.P. Morgan’s You Invest Trade is an online trading platform that enables you to buy and sell Stocks, bonds, Mutual funds, exchange-traded funds (ETFs), fixed income and options without the help of a human broker.

You Invest Trade is designed for investors who want to take the management and trading of their investments into their own hands, and like many online brokerage platforms, You Invest Trade offers its service for minimal fees. You Invest offers multiple account options, including an individual brokerage account, a traditional IRA account and a Roth IRA account.

With You Invest, cash that is held in your investment account is put into a bank deposit sweep account where it earns interest, with rates currently ranging from 0.03% APY to 0.20% APY, depending on your fund. You Invest allows you to place trades online between 6 a.m. and 2 p.m. ET.

For new investors, You Invest Trade’s Portfolio Builder tool is certainly worth checking out, as it provides guidance by helping you create the right asset allocation based on your investment goals, time horizon and risk tolerance. However, the Portfolio Builder requires a hefty minimum of $2,500.

These are the main features and fees associated with You Invest Trade:

Minimum to open account$1
Minimum to keep account open$0
Tradable securities and fees
  • U.S. listed stocks and ETFs: $0 per trade online; $25 per representative-assisted trade 
  • Options: $0 per trade plus $0.65 per contract online; $25 per representative-assisted trade plus $0.65 per contract
  • Mutual funds: $0 per transaction online; $20 per representative-assisted transaction 
  • Fixed income: $0
Account fees
  • Brokerage account transfer: $75 
  • Retirement brokerage account termination: $75
  • Wire transfer: $25 
Current promotionsGet $725 when you open and fund a new account with $25,000 or more in new money within 45 days.
(Note that other fees may apply.)

financial advisor

What is You Invest Portfolios?

In addition to its online brokerage service, J.P. Morgan also offers You Invest Portfolios, which essentially acts as a robo-advisor serving up curated investment portfolios based on your own investing needs. Your portfolio is designed and managed by experts and technology at J.P. Morgan, which will rebalance and monitor it accordingly.

J.P. Morgan crafts your portfolio based on your risk profile, investing goals and time horizon. Portfolios are made up of a diversified mix of J.P. Morgan ETFs and cash, and are managed using a glide path strategy, which adjusts your mix of investments over time and reduces your risk exposure as you get older. For context, glide paths are often the heart of target-date funds.

You Invest Portfolios currently offers the following types of portfolios:

  • Conservative: 75% fixed income and cash, 25% U.S. and international equities
  • Moderate: 50% fixed income and cash, 50% U.S. and international equities
  • Growth: 25% fixed income and cash, 75% U.S. and international equities
  • Aggressive: 10% fixed income and cash, 90% U.S. and international equities

Unlike You Invest Trade, You Invest Portfolios is a managed fund. It therefore charges higher minimums and fees, which include:

Minimum to open$500
Minimum to keep account open$250
Management fee0.35% of the account balance per year
Account fees
  • Brokerage account transfer: $75
  • Retirement brokerage account termination: $75
  • Wire transfer: $25

Advantages of You Invest

You Invest shines in certain areas, such as accessibility and affordability, more than others. The product’s strengths include:

  • Low fees for You Invest Trade: With unlimited, $0 commission-free online trades of U.S.Stocks and ETFs, You Invest Trade ranks among some of the more robust online brokerage firms that offer competitively low fees for online investing.
  • Easy access: Chase’s highly rated mobile app supports You Invest Trade and You Invest Portfolios, and enables customers to trade from their phone.
  • Low barrier to entry: There are a number of ways you can fund your You Invest account, including moving cash or funds from a money market account, checking or savings account; transferring funds from another investment account; or rolling over funds from a retirement account. You Invest Trade’s low minimum of $1 to open and $0 to maintain an account makes investing more attainable for investors who don’t have large bulks of cash on-hand to invest. You also do not need to be an existing Chase bank customer to open an account.

Disadvantages of You Invest

As is the case with most financial products, J.P. Morgan’s You Invest also has drawbacks, ranging from the lack of a stand-alone app to a limited investment selection:

  • No stand-alone app: While Chase’s mobile app supports You Invest Trade and You Invest Portfolios, there is no stand-alone app dedicated to just You Invest. Meanwhile, online brokerage firm competitors, such as Robinhood and Acorns, take a mobile-first approach.
  • Higher fees for You Invest Portfolios: While the advisory fee for You Invest Portfolios — which is 0.35% of your account balance per year — is less than or on par with the advisory fees charged by other big financial institutions (such as Fidelity and TD Ameritrade), it’s not the lowest rate out there. Currently, robo-advisors including Wealthfront, Betterment and Ellevest are offering lower rates.
  • Lack of investment selection: While You Invest Trade does offer the standard investment options, it falls short by not easily offering alternative investments, like cryptocurrencies and commodities. You Invest Portfolios also limits the ETFs in your portfolio to a selection of J.P. Morgan exchange-traded funds.

Is You Invest safe?

Any investment comes with the risk of loss. However, You Invest is insured by the Securities Investor Protection Corporation (SIPC) for up to $500,000 per customer. Additionally, J.P. Morgan is a member of the Financial Industry Regulatory Authority (FINRA). As a result, you’re reasonably protected — especially when you consider that this is a company with more than $2 trillion in assets under management. Just make sure you understand your own risk tolerance before you invest. While insurance protects you from failure, you’re not protected from market losses.

Is You Invest right for you?

J.P. Morgan’s You Invest offers investing products that are easy to use, highly accessible and relatively affordable, coupled with the assurance that comes with doing business with a well-established financial institution. New investors who are looking to wade into the waters of investing with a little bit of hand-holding will likely benefit the most from You Invest products. If you’re a seasoned investor who wants a wider selection of investments and a more hands-on approach, you may consider looking elsewhere.

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