Banks that have investing accounts, online stock trading, mutual fund investment services in 2019: Bank of America, Chase, TD, Capital One, Wells Fargo, and Ally.

Overview of Banks that Provide Online Investing Accounts

Many banks today have ventured out into the brokerage world by offering security trading services. The quality and price of these investment services can vary widely from broker to broker. Some brokerage firms provide discounts for banking clients. Let’s take a look at some banks that provide investing services, and see how they compare to each other.

TD Bank Brokerage Account

Toronto-Dominion Bank is the biggest shareholder of TD Ameritrade, one of America’s largest on-line discount brokers. The securities firm does not currently offer any discounts for TD Bank customers, although it has in the past.

TD Ameritrade provides some of the best trading tools in the brokerage industry, and it does so without imposing any trading requirements, fees, or account minimums. The broker offers a large selection of mutual funds (over 11,000), and it provides more than 100 exchange-traded funds that carry zero commissions.

There are over 600 TD Ameritrade brick-and-mortar locations throughout the U.S. These branches do not provide any services on TD Bank accounts. The broker provides phone service around the clock, and there is a helpful AI chat bot on the TD Ameritrade website.

Stock and ETF trades are $6.95, and option contracts are an extra 75 cents. There are over 2,000 commission-free mutual funds and 296 commission-free ETF's at the broker. They also offer the best promotion offer among banks that provide brokerage accounts.

Learn more in TD Ameritrade brokerage review.

Promotion offer: Trade free for 60 days + get up to $600.

Open TD Ameritrade Account

Ally Bank Investing Account

Ally Financial recently purchased TradeKing, an acquisition that created Ally Invest. The Ally website now hosts bank and brokerage accounts side-by-side, and logging into either account requires a single user ID. Funds can easily be transferred between two Ally financial accounts.

Neither Ally Bank nor TradeKing had any branch locations, so naturally neither does Ally Invest. The broker does provide a helpful on-line chat feature, along with 24/7 phone support and a service e-mail address.

Continuing with TradeKing’s policy of low commissions, Ally Invest charges just $4.95 for equity transactions. Active traders receive a $1 discount. Options cost 65 cents per contract, and frequent traders pay only 50 cents.

Learn more in Ally Invest brokerage review.

Promotion offer: Up to $3,500 cash bonus + commission free trades for new accounts.

Open Ally Invest Account

Capital One Bank Brokerage

Capital One is a much smaller financial group than Bank of America, and it shows in its brokerage arm. Capital One Investing doesn’t quite measure up to Merrill Edge, as its website and trading tools are much less advanced. It doesn’t have 24/7 customer service, as Merrill Edge does, nor does it provide discounts to Capital One Bank customers.

The broker does provide a convenient automatic investing plan called ShareBuilder. It charges just $3.95 per purchase (normally it’s $6.95) of stocks, ETF’s, or mutual funds. Orders are submitted only on Tuesdays.

Derivative contracts are 75 cents each, with assignments and automatic exercises charged at $20. Early exercises cost $30.

There are less than 1,000 mutual fund available at Capital One Investing, and the broker does not provide any commission-free ETF’s. It also does not offer bond trading at any price.

Learn more in Capital One brokerage review.

J.P. Morgan Chase Investing Account

Chase Bank is owned and operated by JPMorgan Chase & Co., which also operates J.P. Morgan Securities. The brokerage arm targets experienced traders who have large assets. The broker provides wealth management and investment advice. The advice can be on a discretionary or non-discretionary basis. The latter is unusual in the brokerage industry as most firms use discretionary management and make money off of securities. The non-discretionary model would be good for investors who would rather just pay a flat fee for advice.

While J.P. Morgan Securities does not have an on-line discount brokerage service, it does offer other services that many investors may find beneficial. For example, the broker-dealer helps clients with education funding, retirement planning, and distributing assets to heirs.

Learn more in Chase brokerage review.

Banks Offering Investing Accounts Summary

Many banks in the U.S. today are part of large financial conglomerates. These financial behemoths frequently offer brokerage services, although as we saw, they can vary widely from one company to the next. Having a bank account is not sufficient reason to open a securities account with an affiliated brokerage firm. Do plenty of homework first and make sure the broker offers everything you want.

Continue Reading