JPMorgan wipes out $5.5 billion in market cap of online brokers after saying it's giving users of its new digital-investing service free trades

  • JPMorgan announced Tuesday a digital-investing service that has free trades and no account minimum.
  • Online brokers’ stocks are getting hit hard on the news.
  • JPMorgan shares are ticking higher.

Online brokers are under pressure Tuesday morning after JPMorgan announced a digital-investing service that gives users 100 free trades a year and has no account minimum.

The selling has wiped out $US5.5 billion in market cap of the biggest online brokers with Charles Schwab (-$US2.64 billion) and TD Ameritrade (-$US2.18 billion) seeing the biggest impact. JPMorgan shares are marginally higher.

Here’s a look at the scoreboard:

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