JPMorgan Chase has introduced new tools that allow users to research and purchase bonds and brokered certificates of deposit (CDs) through its mobile app and online portal.

These features target self-directed investors, enabling users to customize screens and compare bond yields along with their banking activities.

This initiative is part of JPMorgan’s strategy to improve its online investing platform, which has recently surpassed US$100 billion in assets under management.

Additionally, the bank plans to introduce after-hours stock trading to attract more active investor

🔗 Source: CNBC

🧠 Food for thought

1️⃣ Late entrant’s challenge in the trillion-dollar online brokerage race

JPMorgan’s recent crossing of $100 billion in self-directed investing assets highlights its position as a latecomer in a field dominated by established giants.

This figure pales in comparison to leaders like Charles Schwab, which offers a more comprehensive range of investment products, earning a perfect 5-star rating for investment options versus JPMorgan’s 4 stars 1.

The gap extends to trading capabilities too, with JPMorgan’s simpler platform rated 2.5 stars compared to Schwab’s 5-star rating for its advanced charting features and technical indicators 1.

Despite its massive $3.2 trillion wealth management division, JPMorgan’s self-directed platform remains relatively small, demonstrating how difficult it is to build market share against entrenched competitors even with substantial resources 2.

JPMorgan’s 2018 launch of “You Invest” (later rebranded) and subsequent 2021 overhaul show the challenges of finding the right approach in a mature market where competitors have had decades to perfect their offerings.

2️⃣ Fixed income tools targeting the post-pandemic retail investor evolution

JPMorgan’s new bond trading features directly respond to documented shifts in retail investor behavior during and after the pandemic.

Retail investors increased market risk in their portfolios by an average of 15% from 2019 to 2021, with individuals transferring funds from checking to brokerage accounts at 3-4 times pre-pandemic rates 3.

This timing aligns with broader industry data showing that 31% of investors now use online discount brokerage platforms, representing significant growth in self-directed investing 4.

Recent JPMorgan developments