JP Morgan and Fidelity are two major financial services players that that are focused on different business segments. Fidelity is primarily known as a brokerage firm and asset manager, while JP Morgan is best known for its banking services. In this article, we'll compare JP Morgan vs. Fidelity to help you choose the best option for your personal finance and investing needs.
JPMorgan Chase
JPMorgan Chase is the world’s largest bank by market capitalization and the fifth largest by total assets. The company's operations are divided into six main segments: asset and wealth management, commercial banking, consumer and community banking, corporate and investment banking, corporate functions, and technology.
JPMorgan Chase operates through two main subsidiaries: J.P. Morgan and Chase. J.P. Morgan provides financial services to governments, corporations, institutional investors, and high net worth individuals, covering areas such as asset management, commercial banking, investment banking, payments, private banking, and wealth management.
On the other hand, the Chase subsidiary focuses on consumer and commercial banking services, offering products like checking and savings accounts, CDs, credit cards, home and auto loans, and investment products.
Fidelity
Fidelity is a major financial services company that had $4.9 trillion in assets under management (AUM) as of 2023. Fidelity’s services include stockbroking, ETFs, mutual funds, retirement planning, cash management accounts and more. One of the company’s most notable products are the Fidelity Zero mutual funds, which have no investment minimums and no expense ratio.
In 2018, Fidelity launched a subsidiary called Fidelity Digital Assets, which specializes in providing crypto asset services to institutional investors. Fidelity is one of the leaders in cryptocurrency adoption among large financial industry funds.
Although Fidelity is not a bank, it does offer a cash management account, which is a brokerage account that’s specialized for spending and cash management. In practice, this product can fulfill many of the functions of a checking account while providing significant interest on deposits.
JP Morgan vs Fidelity – Which one should you pick?
A notable difference between the two companies is that JPMorgan Chase trades on the New York Stock Exchange under the ticker symbol JPM, while Fidelity is a privately held company. According to Fidelity, being privately owned allows the company to make decisions based on long-term benefits, instead of focusing on short-term benefits to satisfy stockholders.
In terms of investing, JPMorgan Chase offers a product called J.P. Morgan Self-Directed Investing, which allows users to buy stocks and other securities. The product charges no fees for stock, ETF and mutual fund trades, and a flat $0.65 fee per contract for options trades.
J.P. Morgan Self-Directed Investing can be a solid choice for investors, allowing customers to start investing with as little as $1 and offering most trades commission-free. It's especially convenient for Chase bank customers, as the investment platform can be accessed directly from the banking app. However, it may not be suitable for all investors. The app is relatively simple and offers fewer resources compared to some of its key competitors, including Fidelity.
Fidelity's brokerage service provides low-fee (or zero, depending on the asset) stock and options trades and offers a wide range of Fidelity’s mutual funds and ETFs, many available at no commission. It also features a solid selection of research and investment tools, along with a an excellent mobile app for those who prefer to invest from their phones or tablets.
Generally, Fidelity is more suitable for experienced investors and those interested in mutual funds and ETFs issued by Fidelity itself.
If you are specifically interested in trading services and want to open an investment account, we recommend you pick Fidelity over JP Morgan, as the company has an overall stronger offering for investing in stocks and other assets. JPMorgan Chase is better suited for banking services, although Fidelity’s cash management account product also deserves some consideration.
If you are looking to learn more about investing in stocks, make sure to take a look at our list of the best stocks to buy now.
