- 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:
- E-Trade (ETFC): -4.5%
- TD Ameritrade (AMTD): -6.4%
- Charles Schwab (SCHW): -3.8%
- JPMorgan (JPM): +0.68%
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