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Investing

Just2Trade Review 2019

Editorial Note: The content of this article is based on the author’s opinions and recommendations alone. It has not been previewed, commissioned or otherwise endorsed by any of our network partners.

While Just2Trade might not be as well-known as larger brokers such as Charles Schwab and Fidelity Investments, it’s been around a long time all the same, since 1981. Just2Trade is really focused on one thing — low trading commissions — and if that’s what you need as a trader, this broker may be just what you’re looking for. However, that obsessive focus on price comes at the cost of perks that are quite often standard at other (admittedly higher-cost) brokers.

Just2Trade
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The bottom line: If you’re looking for low-cost trading above all else, Just2Trade could be a good option.

  • Low per-share and per-trade costs
  • Access to multiple futures trading platforms
  • Limited research and “frills”

Who should consider Just2Trade

Low trading costs generally are a positive thing for beginning investors because they allow them to roll up more earnings in their portfolio. While Just2Trade focuses on low commissions, it’s really a broker for high-volume traders and professionals who know what they want — that is, low costs. The lack of substantial research and other frills may leave some new investors feeling lost, while the higher account minimum certainly doesn’t encourage new investors to join the fold either.

Just2Trade fees and features

Stock trading fees
  • $2.50 per trade (account balance $2,500+)
  • $2.5 per trade (account balance $2,000-$2,499)
Amount minimum to open account
  • $2,500
Tradable securities
  • Stocks
  • ETFs
  • Mutual funds
  • Options
  • Futures / commodities
Account fees (annual, transfer, inactivity)
  • $50 for IRAs with less than $10,000 and fewer than 40 trades
  • $80 full account transfer fee
  • $25 partial account transfer fee
  • $15 per quarter unless five trades have been made per quarter or there is at least $50,000 in the account
Commission-free ETFs offered
Mutual funds (no transaction fee) offered
Offers automated portfolio/robo-advisor
Account types
  • Individual taxable
  • Traditional IRA
  • Roth IRA
  • Joint taxable
  • Rollover IRA
  • Rollover Roth IRA
  • Custodial Uniform Gifts to Minors Act (UGMA)/Uniform Transfers to Minors Act (UTMA)
  • SEP IRA
  • Trust
Mobile appiOS, Android
Customer supportPhone, Chat, Email
Research resources
  • SEC filings
  • Earnings press releases

Strengths of Just2Trade

  • Low stock trading commissions: Just2Trade goes all in on this one strength, and it’s the broker’s standout quality by far. If low stock trading commissions are what you need, this broker probably will be at or near the top of your list. If you’re on the per-trade pricing plan, you’ll pay just $2.50 per trade — very favorable compared to key players such as Fidelity ($0.00), Charles Schwab ($0.00) and TD Ameritrade ($0.00). It even gives noted low-cost broker Interactive Brokers a solid run. With Interactive Brokers charging $0.005 per share (with a dollar minimum), investors regularly buying more than 500 shares per trade should find that Just2Trade’s flat pricing comes out ahead.It’s not just the per-trade pricing that clients should find attractive, and the broker competes well with Interactive Brokers here too. Just2Trade offers per-share trades starting at $0.0025 per share (less than 1M shares traded per month) and then goes as low as $0.001 (for accounts trading at least 5 million shares a month). Interactive Brokers’ pricing doesn’t get that low until you trade 20 million shares, though it goes even lower once you surpass 100 million shares.
  • Low options trading commissions: Just2Trade scores well for providing low options trading commissions too. The broker charges a base fee of $2.50 and a per-contract fee of $0.50 on its per-trade plan. That compares favorably to the full-service brokers and even against Interactive Brokers’ pricing schedule of no base fee and $0.70 per contract.For example, on a trade of 10 contracts, Just2Trade charges $7.50, while Interactive Brokers (typically) charges $7.00. If you trade more than 12 contracts at a time, Just2Trade is cheaper and remains cheaper than Interactive Brokers until you trade tens of thousands of contracts a month.
  • Access to multiple futures trading platforms: If you’re trading futures, Just2Trade gives you access to several trading platforms, including Sterling Trader Pro, one of the top direct-access platforms. You’ll also have access to OEC Trader, CQG Trader and the iBroker mobile app. You can test out a demo of the first three to see how they operate.

Drawbacks of Just2Trade

  • Limited research and support: If you need a broker that provides research, investing education and general support, then Just2Trade probably is not for you. While the broker provides coverage of stocks using data from Morningstar, it doesn’t compare favorably to the extensive level of research offered for no extra fee at top brokers such as Charles Schwab and Merrill Edge. And these brokers, as well as Fidelity, are well-noted for their education offerings — getting new investors up to speed on how to invest with webinars and other tools.If you’re a high-volume trader or an investor who gets research from other sources, the limited research and support won’t be a drawback to you at all.
  • No commission-free ETFs: Again, another thing that works against Just2Trade in attracting beginning investors is the fact that it doesn’t offer any commission-free ETFs. These are a staple for newer investors because they provide immediate diversification at a low cost. That said, the broker’s $2.50 trading commission is not exactly a tall order either, so beginners may be willing to overlook this drawback. Still, free is free.
  • High minimum monthly commissions: If you’re trading on the broker’s per-share plan, Just2Trade requires a minimum of $333 in monthly commissions. If you don’t rack up that bill during the month, it’s still coming out of your account. Of course, this fee doesn’t apply to the broker’s per-trade plan, which has no minimum monthly trading commission. It should go without saying that you’ll have to trade a lot of shares to reach that minimum.
  • A high account minimum: The broker’s relatively high account minimum also works against newer investors. Just2Trade requires a minimum of $2,500 in the account to begin trading, and if the amount falls below that minimum, the price per trade actually rises to $4. If your account dips below $2,000, you may be required to deposit more money before you’ll be able to resume trading. If you’re on the firm’s per-share pricing plan, you’ll need a minimum of $25,000 to trade.

Is Just2Trade safe?

Just2Trade has been around for nearly four decades and is a member of the Securities Investor Protection Corporation (SIPC). In the event that the broker is unable to return your assets, this membership protects investors up to $500,000 in assets (including up to $250,000 in cash-only assets). The broker goes one better, though, ensuring each account up to $25 million with excess coverage provided by Lloyd’s of London. None of this coverage will keep your investments in risk assets from declining in value, of course, but you are protected from financial troubles that originate with the broker.

Final thoughts

If finding the lowest trading costs is your M.O., then Just2Trade ought to be in the running for the home of your new account. It promises low trading costs and delivers. However, it’s a one-trick pony, and those looking for more — research, for example — probably will want to look elsewhere.

Those who need a full-service broker while still getting low trading costs could check out Interactive Brokers. Those needing more guidance or research and willing to pay a bit more could consider Charles Schwab, Fidelity Investments and even Merrill Edge.

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on Just2Trade’s secure website

Advertiser Disclosure: The products that appear on this site may be from companies from which MagnifyMoney receives compensation. This compensation may impact how and where products appear on this site (including, for example, the order in which they appear). MagnifyMoney does not include all financial institutions or all products offered available in the marketplace.

James F. Royal, Ph.D.
James F. Royal, Ph.D. |

James F. Royal, Ph.D. is a writer at MagnifyMoney. You can email James here

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Investing

J.P. Morgan You Invest Review 2019

Editorial Note: The content of this article is based on the author’s opinions and recommendations alone. It has not been previewed, commissioned or otherwise endorsed by any of our network partners.

Chances are you’ve heard of J.P. Morgan Chase. It’s one of the major players in the financial space, and it’s long had a brokerage arm in addition to providing global banking services. Now, though, J.P. Morgan is getting into the online brokerage space with You Invest.

You Invest is an online trading platform that allows you to buy and sell individual stocks and exchange-traded funds (ETFs) without the need for a human broker. This review will look at what’s offered and provide you with the information you need to decide if it’s right for you.

You Invest offers a way for you to seamlessly connect your Chase bank account to your brokerage account. Additionally, you end up with access to plenty of educational materials and the ability to understand your total portfolio.

J.P. Morgan You Invest
Visit J.P. MorganSecuredon J.P. Morgan You Invest’s secure site
The bottom line: You Invest offers a fairly standard online brokerage experience with the perks of low-cost trading fees and a wealth of investor education.

  • Pay just $2.95 per trade after receiving 100 free trades.
  • Enjoy a large selection of investments, including stocks, bonds, mutual funds and ETFs.
  • Manage investments according to goals with the Portfolio Builder tool.

Who should consider You Invest

You Invest is ideal for beginning investors, especially those looking for education and assistance building a portfolio that will help them reach their goals. Intermediate and advanced investors also can benefit, but the educational tools and resources are especially helpful for novice investors.

Additionally, it connects to your other Chase accounts, making it easy for you to move money from your bank account to your brokerage account and vice versa. If you already bank with Chase, using You Invest to manage your portfolio might not be a bad choice.

While $2.95 per trade is a low cost, this product might not be the best choice for active traders. For traders who can keep their trade volume low, this can be an excellent brokerage since you receive 100 free trades in the first year after an account is opened — with the opportunity to qualify for more free trades in subsequent years.

J.P. Morgan You Invest fees and features

Current promotions

Up to 100 free trades

Stock trading fees
  • $2.95 per trade
  • $0 per trade for Chase Private Client, Chase Sapphire Banking, J.P. Morgan Private Bank and J.P. Morgan Securities clients
Amount minimum to open account
  • $0
Tradable securities
  • Stocks
  • ETFs
  • Mutual funds
  • Bonds
Account fees (annual, transfer, inactivity)
  • $0 annual fee
  • $75 full account transfer fee
  • $75 partial account transfer fee
  • $0 inactivity fee
Commission-free ETFs offered
Offers automated portfolio/robo-advisor
Account types
  • Individual taxable
  • Traditional IRA
  • Roth IRA
  • Joint taxable
  • Rollover IRA
  • Rollover Roth IRA
Ease of use
Mobile appiOS, Android
Customer supportPhone, Chat, 5,100 branch locations
Research resources
  • SEC filings
  • Mutual fund reports
  • Earnings press releases
  • Earnings call recordings

Strengths of You Invest

The educational tools and insights provided by You Invest are where this offering shines. They help you find the right mutual funds and stocks, and get you to understand your investing needs.

  • Low trading fees: To start, you get 100 free trades from You Invest. After you use your allotment, trades cost only $2.95. Among online brokers that charge trading fees, this is one of the lowest. If you’re not an active trader, you might be able to avoid paying fees fairly easily. You can get more free trades each year if you use certain Chase banking products, such as Premier Plus Checking.
  • Educational resources: You Invest offers a number of helpful articles about investing, strategy and more. It’s possible for you to learn the basics and then apply them to your portfolio.
  • Portfolio Builder: If you have at least $2,500 in your account, you can take advantage of this tool designed to help you choose the right investments for your portfolio. You’ll receive guidance on putting together a portfolio based on your answers to questions designed to gauge your risk tolerance, investment goals and time horizon.
  • Powerful screening tools: You can use these tools to set parameters and then find assets that fit your requirements. A list of options appears, and when you’re looking at Mutual funds , You Invest also includes Morningstar ratings and analysis of where they might fit into your portfolio.

Drawbacks of You Invest

A review of You Invest wouldn’t be complete without a look at some of the downsides. In many ways, You Invest is a typical online brokerage option. Other than some of the educational and portfolio building tools, there’s not a lot to distinguish this from other brokers.

  • No standalone app: Rather than offering a standalone app, you access You Invest through J.P. Morgan Mobile. Until you get used to it, it can be somewhat disconcerting to navigate to your trading app within the regular app.
  • Limited account types: There are only two account options with You Invest: taxable and IRA. You can get a Joint taxable account as well as an individual account, and there is a Roth option with the IRA. However, if you’re hoping for a custodial account or 529, you won’t find it with You Invest.
  • No managed portfolios: Right now, you won’t find managed portfolios, but they are supposed to be coming in 2019. So if you’re more of a hands-off investor, you might want to wait until there are more options available.
Fees
$2.95 per trade

Per Trade Stock Trading Fee

Account Minimum
$0
Promotion

Up to 100 free trades

Fees
$0.00 per trade

Per Trade Stock Trading Fee

Account Minimum
$0
Promotion

Get up to $600 when you open and fund an account within 60 calendar days of account opening, depending on deposited amount.

Fees
$0.00 per trade

Per Trade Stock Trading Fee

Account Minimum
$0
Promotion

Cash bonuses are available for new accounts. Bonuses start at $50 if you deposit or transfer $10,000+.

Is You Invest safe?

Any investment comes with the risk of loss. However, You Invest is insured by the SIPC for up to $500,000. Additionally, J.P. Morgan is a member of FINRA. As a result, you’re reasonably protected — especially when you consider that this is a company with more than $1 trillion in assets under management. It’s not likely to fail.

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.

Final thoughts

You Invest can be a great option for middle-of-the-road investors who want a little more flexibility in their portfolios but still need some guidance. There are a number of assets to choose from, and the educational tools and resources allow you to build a portfolio based on your long-term goals and expectations.

Depending on your goals, there might be other products that work for you. For those more interested in a hands-off approach, Betterment might be a more suitable choice. You also can make trades for less with a service like Robinhood. However, you might not get the same level of educational tools with Robinhood, and Betterment won’t let you personalize your portfolio to the same degree.

If you want a low-cost, personalized way to invest — learning as you go — and if you’re already a Chase customer, opening a You Invest account might be a good way to move forward.

Open a J.P. Morgan You Invest accountSecured
on J.P. Morgan You Invest’s secure website

Advertiser Disclosure: The products that appear on this site may be from companies from which MagnifyMoney receives compensation. This compensation may impact how and where products appear on this site (including, for example, the order in which they appear). MagnifyMoney does not include all financial institutions or all products offered available in the marketplace.

Miranda Marquit
Miranda Marquit |

Miranda Marquit is a writer at MagnifyMoney. You can email Miranda here

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Investing

How to Make Money in Stocks

Editorial Note: The content of this article is based on the author’s opinions and recommendations alone. It has not been previewed, commissioned or otherwise endorsed by any of our network partners.

Putting money in the market is well-worn financial advice for a reason: Investing in stocks is one of the best steps you can take toward building wealth.But how, exactly, is that wealth built? How is money earned by purchasing stock market holdings, and what can you do to maximize the gains you make from your own portfolio?

How to make money in stocks: 5 best practices

The way the stock market works — and works for you — is as simple as a high school economics class. It’s all about supply and demand, and the way those factors affect value.

Investors purchase market assets like stocks (shares of companies), which increase in value when the company does well. As the company in question makes financial progress, more investors want a piece of the action, and they’re willing to pay more for an individual share.

That means that the share you paid for has now increased in price, thanks to higher demand — which in turn means you can earn something when it comes time to sell it. (Of course, it’s also possible for stocks and other market holdings to decrease in value, which is why there’s no such thing as a risk-free investment.)

Along with the profit you can make by selling stocks, you can also earn shareholder dividends, or portions of the company’s earnings. Cash dividends are usually paid on a quarterly basis, but you might also earn dividends in the form of additional shares of stock.

Micro-mechanics of how stocks earn money aside, you likely won’t see serious growth without heeding some basic market principles and best practices. Here’s how to ensure your portfolio will do as much work for you as possible.

1. Take advantage of time

Although it’s possible to make money on the stock market in the short term, the real earning potential comes from the compound interest you earn on long-term holdings. As your assets increase in value, the total amount of money in your account grows, making room for even more capital gains. That’s how stock market earnings increase over time exponentially.

But in order to best take advantage of that exponential growth, you need to start building your portfolio as early as possible. Ideally, you’ll want to start investing as soon as you’re earning an income — perhaps by taking advantage of a company-sponsored 401(k) plan.

To see exactly how much time can affect your nest egg, let’s look at an example. Say you stashed $1,000 in your retirement account at age 20, with plans to hang up your working hat at age 70. Even if you put nothing else into the account, you’d have over $18,000 to look forward to after 50 years of growth, assuming a relatively modest 6% interest rate. But if you waited until you were 60 to make that initial deposit, you’d earn less than $800 through compound interest — which is why it’s so much harder to save for retirement if you don’t start early. Plus, all that extra cash comes at no additional effort on your part. It just requires time — so go ahead and get started!

2. Continue to invest regularly

Time is an important component of your overall portfolio growth. But even decades of compounding returns can only do so much if you don’t continue to save.

Let’s go back to our retirement example above. Only this time, instead of making a $1,000 deposit and forgetting about it, let’s say you contributed $1,000 a year — which comes out to less than $20 per week.

If you started making those annual contributions at age 20, you’d have saved about $325,000 by the time you celebrated your 70th birthday. Even if you waited until 60 to start saving, you’d wind up with about $15,000 — a far cry from the measly $1,800 you’d take out if you only made the initial deposit.

Making regular contributions doesn’t have to take much effort; you can easily automate the process through your 401(k) or brokerage account, depositing a set amount each week or pay period.

Fees
$0.00 per trade

Per Trade Stock Trading Fee

Account Minimum
$0
Promotion

500 free trades with a qualifying net deposit of $100,000

Fees
$0.00 per trade

Per Trade Stock Trading Fee

Account Minimum
$0
Promotion

Get up to $600 when you open and fund an account within 60 calendar days of account opening, depending on deposited amount.

Fees
$0.00 per trade

Per Trade Stock Trading Fee

Account Minimum
$500
Promotion
New accounts with a deposit of at least $5,000, may be eligible for a cash bonus, which can range from $100 to $2,500 depending on the amount deposited.

3. Set it and forget it — mostly

If you’re looking to see healthy returns on your stock market investments, just remember — you’re playing the long game.

For one thing, short-term trading lacks the tax benefits you can glean from holding onto your investments for longer. If you sell a stock before owning it for a full year, you’ll pay a higher tax rate than you would on long-term capital gains — that is, stocks you’ve held for more than a year.

While there are certain situations that do call for taking a look at your holdings, for the most part, even serious market dips reverse themselves in time. In fact, these bearish blips are regular, expected events, according to Malik S. Lee, CFP® and founder of Atlanta-based Felton & Peel Wealth Management.

So-called market corrections are healthy, he said. “It shows that the market is alive and well.” And even taking major recessions into account, the market’s performance has had an overall upward trend over the past hundred years.

4. Maintain a diverse portfolio

All investing carries risk; it’s possible for some of the companies you invest in to underperform or even fold entirely. But if you diversify your portfolio, you’ll be safeguarded against losing all of your assets when investments don’t go as planned.

By ensuring you’re invested in many different types of securities, you’ll be better prepared to weather stock market corrections. It’s unlikely that all industries and companies will suffer equally or succeed at the same level, so you can hedge your bets by buying some of everything.

5. Consider hiring professional help

Although the internet makes it relatively easy to create a well-researched DIY stock portfolio, if you’re still hesitant to put your money in the market, hiring an investment advisor can help. Even though the use of a professional can’t mitigate all risk of losses, you might feel more comfortable knowing you have an expert in your corner.

How the stock market can grow your wealth

Given the right combination of time, contribution regularity and a little bit of luck, the stock market has the potential to turn even a modest savings into an appreciable nest egg.

Ready to get started investing for yourself? Check out the following MagnifyMoney articles:

Advertiser Disclosure: The products that appear on this site may be from companies from which MagnifyMoney receives compensation. This compensation may impact how and where products appear on this site (including, for example, the order in which they appear). MagnifyMoney does not include all financial institutions or all products offered available in the marketplace.

Jamie Cattanach
Jamie Cattanach |

Jamie Cattanach is a writer at MagnifyMoney. You can email Jamie here