Chase Investment Account Hidden Fees
If you are thinking about opening a Chase brokerage account, there are a lot of hidden fees that you should be aware of. These
fees, many of which can be carefully avoided, are covered in detail in this article. We’ll start with the more straightforward
commission structure, and then discuss some of the lesser known fees that would apply in certain scenarios.
Chase You Invest Commissions
Right now anyone that opens a Chase Brokerage account will automatically get 100 free U.S. stock and ETF trades (to be used
within one year), but after these free trades expire Chase charges a $2.95 commission for each online U.S. stock or ETF trade.
This is in addition to a minor transaction fee on stock and ETF sales between $0.01 and $0.03 per $1,000 of principal. Trades
in foreign equities incur a commission of 0.2% of the principal amount of the trade.
Online mutual fund trades will always be free of commission, but note that most mutual funds charge an annual management fee that
is embedded in the NAV.
Commission for online fixed income trades is $1 per bond (1,000 Par Value) per trade ($10 minimum and $250 maximum per trade).
Chase does not charge any commission for trades of U.S. Treasury bonds, notes, and bills.
If you were to place any of these trades (stocks, ETFs, or bonds) via the phone with a Chase representative (called an “assisted
trade”) it would cost you an additional $20 to $25, but there shouldn’t really ever be a reason why you can’t place all your
trades online.
Benefits for Chase Banking Customers
Chase advertises some perks for its existing banking customers that want to also open their brokerage account with them. Chase
Premier Plus Checking customers receive 100 commission-free trades per year. Chase Sapphire banking customers qualify for
$0 commissions on all online U.S. stock and ETF trades. These commission-free trades are limited to two retirement and two
non-retirement accounts per customer.
This is a nice perk for existing Chase banking customers; however one must consider the fees that are charged for these checking
accounts as well. Chase Premier Plus Checking accounts are subject to a $25 monthly maintenance fee, which is waived if the
average daily beginning balance of your Chase accounts is at least $15,000 or if you have automatic monthly payments setup from
the account to a qualifying Chase mortgage.
Similarly, a Chase Sapphire account incurs a $25 monthly maintenance fee, which can also be waived for meeting the same criteria,
except the minimum average beginning balance to be met is $75,000.
Chase Fees vs Competitors
Other Chase Brokerage Hidden Fees
While commissions and checking account maintenance fees are the most common costs you would encounter, there are some other less
common fees that could apply to your Chase brokerage account in certain scenarios.
Chase charges an account transfer/termination fee of $75 whenever any securities are transferred out of the account, which also
applies to transferring out your SEP or IRA assets. External wire transfers incur a fee of $30; however this can be easily
avoided by using electronic transfers to move your money around.
It is also recommended to use online account statements as physical copies sent through the mail incur a $6 charge.
There are some other fees that can be incurred in unique situations, such as with alternative investments (private equity, hedge
funds, etc.), dealing with physical stock certificates, and transacting with foreign securities/agents, but these won’t apply to
the average investor.
In summary, there are commissions and some hidden fees associated with a Chase brokerage account, but most of the commissions can
be avoided by having a Chase checking account (so long as you’re willing to maintain the minimum required balance to avoid the
maintenance fee). Most of the lesser known hidden fees at Chase You Invest Trade account can also be avoided simply by being
cognizant of and avoiding the unique scenarios that would incur them.
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