JP Morgan and Fidelity are major players in the financial services space that focus on different business sectors. Fidelity is known primarily as a brokerage and asset manager, while JP Morgan is known for its banking services. In this article, we’ll compare JP Morgan and Fidelity to help you choose the best option for your personal financial and investing needs.
Highlights:
- JPMorgan Chase and Fidelity cannot be directly compared, as the two companies focus on different areas of the financial sector.
- If you’re a retail investor looking to trade or invest in stocks, Fidelity’s products are generally better than what JPMorgan Chase offers.
- If you’re looking for banking, go with JPMorgan Chase, as Fidelity is not a bank.
JPMorgan Chase
| Market value | $734 billion |
|---|---|
| Assets under management | $3.4 trillion (as of 2023) |
| profit | $158 billion (as of 2023) |
| employees | Over 309,000 (as of 2023) |
JPMorgan Chase is the world’s largest bank by market capitalization and the fifth-largest bank 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: JPMorgan and Chase. JPMorgan 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 business banking, offering products such as checking and savings accounts, CDs, credit cards, home and auto loans, and investment products..
Sincerity
| Market value | Not available (private property) |
|---|---|
| Assets under management | $3.4 trillion (as of 2024) |
| profit | $28.2 billion (as of 2023) |
| employees | Over 74,000 (as of 2023) |
Fidelity is a major financial services company with $4.9 trillion in assets under management (AUM) as of 2023. Fidelity’s services include stock brokerage, ETFs, mutual funds, retirement planning, cash management accounts, and more. One of the company’s most notable products is Fidelity Zero mutual funds, which have no minimum investment 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 accounta brokerage account that specializes in spending and cash management. In practice, this product can fulfill many of the functions of a checking account while providing significant interest on deposits.
JPMorgan or Fidelity – which should you choose?
The notable difference between the two companies is that JPMorgan Chase is traded 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, rather than focusing on short-term benefits to please shareholders.
In terms of investing, JPMorgan Chase offers a product called JP Morgan Self-Directed Investing, which allows users to purchase stocks and other securities. The product charges no fees for trading stocks, ETFs, and mutual funds, and a flat fee of $0.65 per contract for options trading.
Self-directed investing at JP Morgan can be a solid option for investors, as it allows clients to start investing with as little as $1 and offers 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 major competitors, including Fidelity.
Fidelity’s brokerage service offers 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 of which are available commission-free. It also features a robust suite of research and investing tools, along with an excellent mobile app for those who prefer to invest from their phone or tablet.
In general, Fidelity is better suited for experienced investors 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 choosing Fidelity over JP Morgan, as the company has an overall stronger offering for investing in stocks and other assets. JPMorgan Chase is more suited to banking, although Fidelity’s cash management account product also deserves some attention.
If you’re looking to learn more about investing in stocks, be sure to take a look at our list of the best stocks to buy now.
