Frequently asked questions

You can place trades using the following order types:

You can't trade, transfer or hold cryptocurrencies directly in a J.P. Morgan Self-Directed Investing account. However, you can find and trade cryptocurrency ETFs.

You cannot directly participate in the primary share issuance of an IPO. However, starting at 7 AM ET on the day an IPO's shares are listed on public exchanges, you can queue limit orders in advance of most IPOs by searching for their tickers. Your order will become eligible for execution once the shares begin trading.

Keep in mind, IPO shares do not typically become available for trading on exchanges when the market opens. Trading may begin at any time during the trading day, but the exact timing varies by security. You may not be able to queue orders for all IPOs before trading begins on the day they're listed.

Keep in mind that newly listed securities may experience price volatility as they begin trading in public markets. Investors should be aware of the potential for a wide variance between the public offering price and the initial trading price once secondary market trading begins.

You can buy fractional shares for eligible stocks and ETFs. You can place market orders with fractional shares using a share amount up to 5 decimal places or a dollar amount starting at $5. You can place orders during market hours (9:30 AM to 4 PM ET) on trading days.

Extended hours trading offers you the chance to react to events before and after regular market hours, such as earnings reports and activity in international markets.

You can place orders in the extended hours trading session for eligible stocks and ETFs from 7:30 AM to 5:45 PM ET. All extended hours orders must be limit orders with a day time in force. Orders can also be queued for the following extended hours trading session. Extended hours trading uses extended live pricing available from 6:15 to 9:30 AM ET for pre-market and 4 to 8 PM ET for after-hours.

Extended hours orders generally do not participate in opening and closing auctions for NYSE, NASDAQ or other exchanges. Orders placed for the extended hours session that do not execute by the end of the session at 5:45 PM will be canceled unless trading is halted before that time.

While extended hours trading offers more time to invest, it may come with higher volatility and lower liquidity. Before you get started, see the risks of extended hours trading.

Some companies share profits by paying dividends to investors, usually in cash but sometimes as shares of stock or other assets. You can choose what to do with your dividends for your whole account or for a single position.

You can update your settings by going to Automatic reinvestments.

You can place trades during market or extended hours or queue orders for the following trading session.

Stocks, ETFs, mutual funds and options

Fixed income

You can trade certain over-the-counter (OTC) stocks or American Depository Receipts (ADRs) in J.P. Morgan Self-Directed Investing, with a few exceptions:

Learn more about OTC MarketsOpens overlay.

See the full list of mutual funds available to trade in J.P. Morgan Self-Directed Investing accounts.

You can't buy Class-C mutual funds in J.P. Morgan Self-Directed Investing accounts.

For questions about mutual funds available for managed accounts, please call us Monday to Friday 8 AM to 9 PM ET, or contact your financial advisor.

Some mutual funds have load types that could lead to an estimated sales charge. Depending on the fund, the following load types can apply:

All of the mutual funds available to trade in J.P. Morgan Self-Directed Investing accounts are no-load or load-waived.

Some mutual funds charge a short-term redemption fee if you sell your shares before the end of the fund’s required holding period. Funds charge this fee to discourage short-term trading.

Some mutual funds, usually Class B shares, may have a contingent deferred sales charge (CDSC) if you sell shares within a specified number of years after you buy them. The CDSC is also called a back-end load or sales charge. This fee is usually a percentage of the value of the shares sold. This amount may decrease over a 5-to-10-year period on average.

Some companies share profits by paying dividends to investors, usually in cash but sometimes as shares of stock or other assets. You can choose what to do with your dividends for your whole account or for a single position.

You can update your settings by going to Automatic reinvestments.

When you sell a security, the cash from that sale generally settles in 1 business day. You can check the settlement date for your trades in Transactions. Keep in mind that trades will not settle on trading holidays.

Options are financial contracts that give investors the right to buy or sell an underlying asset, such as a stock, at a set strike price before or on an expiration date. Options trading may help investors manage risk, generate income or pursue financial opportunities based on market conditions.

Level 1 strategies require investors to either own at least 100 shares of the underlying security or hold the equivalent cash. These strategies have a similar risk level to owning the underlying security.

Level 1 strategies

Keep in mind that accounts with margin are not allowed to sell puts as a cash-secured strategy. In addition to level 1 strategies, level 2 strategies allow investors to speculate on potential increases or decreases in the price of an underlying security without owning the shares or holding equivalent cash. These strategies may carry an increased risk of loss if the market does not move as anticipated.

Level 2 strategies

You cannot trade an option the day it's set to expire.

You cannot currently trade options that expire midweek. You can only trade options that expire on Fridays.

You cannot currently trade multi-leg option strategies with a J.P. Morgan Self-Directed Investing account. We only support single-leg options strategies.

You cannot currently trade index options with a J.P. Morgan Self-Directed Investing account.

You cannot currently trade non-standard options with a J.P. Morgan Self-Directed Investing account.

Non-standard options are options that are subject to special adjustments that can result from an underlying company reorganization, stock split, merger, special dividend, etc. Often, non-standard options represent a different deliverable than the standard 100 shares per contract; in other instances, they may represent the acquisition or distribution of different securities or cash. You can learn more about individual non-standard options at the Characteristics and Risks of Standardized OptionsOpens overlay.

Options contracts that are in-the-money on the day they expire are automatically exercised; option contracts that are out-of-the-money on the day they expire are worthless.

If your account does not have enough funds to cover the cost of exercising or assigning the option, or if your account cannot hold the resulting position, we may take action on the position on your behalf, such as closing your position. For more details, see the J.P. Morgan Self-Directed Investing Option Agreement (PDF).

You’ll receive an email notification once your options contracts have been assigned or exercised. You can also see assigned or exercised options on Positions the day they’re exercised

Please call the Service Center at 1-800-392-5749 to make your request.

Recurring investing lets you schedule automated repeating purchases of stocks, exchange-traded funds (ETFs) or mutual funds using a dollar-cost averaging strategy. Recurring investing does not guarantee a profit or protect against a loss.

Here are the steps to set up a recurring investment:

You can fund your recurring investment using your available balance from an internal bank account, an external bank account or cash available to trade in the same investment account you’re scheduling the recurring investment. Funds from external bank accounts will be withdrawn 1 business day prior to each trade date. Be sure to have cash available in your funding account before every recurring investment.

Dollar-cost averaging is an investing strategy used to manage risk by investing your money in equal amounts at regular intervals. By planning a fixed dollar amount and a regular interval in advance, regardless of the price, you will typically buy more shares when prices are lower and buy fewer when prices rise. Through dollar-cost averaging, you can build your position on a consistent basis. Dollar-cost averaging does not guarantee a profit or protect against a loss.

Setting up and maintaining your recurring investments is free. However, you should carefully consider any charges, expenses or minimum investment amounts associated with a mutual fund before you invest. For ETFs, J.P. Morgan Securities LLC imposes a minimum investment requirement. For both ETFs and mutual funds, please read the fund prospectus before investing. To get a copy of the fund’s prospectus, visit the fund manager’s website.

You can set up recurring investments with J.P. Morgan Self-Directed Investing cash accounts. For mutual fund recurring investments, you can also use Self-Directed IRAs and most Full-Service Brokerage accounts that are eligible for online trading. Margin accounts are not eligible to hold recurring investments at this time.

Any recurring investment that would exceed your annual IRA contribution limit will not be made, and we'll pause your recurring investment until the beginning of the next calendar year.

You can schedule an investment weekly, twice per month, monthly, every 3 months, every 6 months and yearly.

Yes, you can edit, pause or cancel recurring investments.

For recurring mutual fund investments, you can modify, cancel or pause your investment up to 3 business days before your next trade date.

For recurring stock and ETF investments funded from an internal bank or J.P. Morgan Self-Directed Investing account, you can modify, cancel or pause your investment up to 1 day before your next trade date.


For recurring stock and ETF investments funded from an external bank account, you can modify, cancel or pause your investment up to 2 business days before your next trade date.

Margin trading lets you borrow funds from J.P. Morgan Securities LLC to buy more securities than you could with your cash alone. The investments you hold are used as collateral for the loan, and we charge interest on the funds you borrow.

In a cash account, you can only buy investments with your own money. With a margin account, you can borrow funds from J.P. Morgan Securities LLC to increase your buying power.

While margin trading can lead to greater profits, it also comes with the risk of increased losses. There is a risk of losing more than your initial investment if your account value declines, and you’re still responsible for repaying the borrowed amount plus any accrued interest.

To learn more about the risks associated with margin, see the Margin Risk Disclosure.

With a J.P. Morgan Self-Directed Investing margin account, you can trade and hold stocks, ETFs, mutual funds, options and fixed income products.

Most equities, ETFs, mutual funds and fixed‑income products are eligible for margin lending. However, eligibility and lending values for certain securities are determined by J.P. Morgan Securities LLC’s house requirements.

In addition, some securities or asset types may carry additional restrictions or higher maintenance requirements, which may change at any time at the firm’s sole discretion without notice.

There are significant risks associated with trading on margin. For example, you can lose more than initially invested since borrowed money magnifies losses, rapid price fluctuations brought on by market volatility might result in large losses and interest rates on margin loans are variable and may increase. It is important that you fully understand the risks before adding margin to your account.

To learn more about the risks associated with margin, see the Margin Risk Disclosure.

There are two primary categories of margin requirements:

Margin requirements are determined by various entities, including the Federal Reserve, FINRA and J.P. Morgan Securities LLC. To buy or hold securities on margin, you must maintain sufficient equity to meet those requirements.

A margin call occurs when you fail to maintain the minimum account equity, known as the maintenance margin, in your margin account. For example, account equity can fall when one or more of your positions has lost value. To restore your equity to the required level, J.P. Morgan Securities LLC will require you to deposit additional funds, transfer cash or marginable securities into the account or sell eligible securities to pay down your loan.

Although less common, a margin call can occur when you do not have enough lending value in your account to meet the initial margin requirement for a new trade.

Buying power is the amount of funds available to purchase securities, including your cash balance and funds borrowed on margin.

By default, the buying power calculation for equity securities assumes the security being purchased is marginable, with a 30% maintenance requirement and a 50% Reg T requirement.

J.P. Morgan Securities LLC may also reduce your buying power for any amount of uncleared funds, pending outgoing money movements, open orders and other events at our discretion.

A concentration is when you invest a significant portion of your portfolio in a single asset or group of common assets. When a single security or group of assets represents a large share of your account holdings—based on factors such as market value, liquidity, industry, or outstanding shares—certain risk factors may be magnified.

To help mitigate this risk, J.P. Morgan Securities LLC applies certain concentration guidelines in a margin account, which may limit the amount you can borrow on a security or on your portfolio. In addition, J.P. Morgan Securities LLC may apply an add‑on to the standard margin requirement for positions in your account to help offset some of the increased risks associated with these holdings.

J.P. Morgan Premium Deposit for Self-Directed Investing is a bank deposit product that is accessed through your brokerage account and earns interest at a rate set by JPMorgan Chase Bank, N.A., based on market conditions. You'll see your Premium Deposit balance next to your positions in the Fixed Income section and on your monthly brokerage statements.

Keep in mind:

Any Self‑Directed Investing client can use Premium Deposit.

JPMorgan Chase Bank, N.A. sets the rate on Premium Deposit for Self‑Directed Investing based on the overall rate environment and the competitive landscape. The rate may change at any time with market conditions. The rate may differ if you purchase Premium Deposit through a J.P. Morgan advisor.

Bonds are the most common type of fixed income securities. A bond represents a loan to the issuer (e.g., a corporation or government) for a certain period of time. In exchange, the issuer typically pays the bond holder interest until the bond matures. When the bond matures, the issuer repays the bond at its face value (or par value).

These are the main types of bonds:

Certificates of deposit (CDs) are savings certificates offered by banks and credit unions that typically offer a predetermined interest rate over a specified period. CDs earn income by locking in an interest rate that is paid back in fixed, regular payments or at maturity. CDs held in a J.P. Morgan brokerage account are eligible for FDIC insurance. You can currently trade new issue and secondary market brokered CDs.

Accrued interest is any interest earned on a fixed income security that hasn’t been paid out. Interest accrues daily, and a buyer owes any accrued interest from the last coupon payment up to the trade settlement date to the previous owner.

Face or “par” value is generally the amount the issuer (e.g., a corporation or government) is required to pay the bondholder when a bond matures. Face value stays the same over time.

The market value of bonds and stocks is determined by the buying and selling activity of all investors on the open market. A bond can be purchased for more or less than its par value, depending on market sentiment. Upon maturity, the bondholder is paid the par value, regardless of the purchase price.

The coupon rate is the stated rate of interest paid on a bond. The yield to maturity is the annual rate of return you earn if you hold a bond to maturity.

The main factors that impact the prices of fixed income securities include:

Since bonds are issued based on prevailing interest rates, changes in the rates have an impact on their market value. Interest rates and bond prices have an inverse relationship. As interest rates go up, bond prices generally fall. Let’s say you purchased a $500 bond that pays a 6% rate of interest. If interest rates rise to 7%, new bonds issued by the same company would become more attractive because investors stand to earn 1% more in interest. Investors aren’t likely to buy your bond unless you discount it. On the flip side, you would benefit from a drop in interest rates because your bonds would be more desirable to potential buyers.

Credit or default risk is the second factor that impacts bond prices. The issuer may go out of business and may not be able to pay its interest rate and principal obligations. Issuers of high-yield bonds have a lower credit rating and are in greater risk of default. To make up for the higher risk, these bonds will pay higher interest rates. Credit rating agencies provide ratings to help investors weigh the risk associated with these bonds.

Most bonds are traded over-the-counter (OTC), which means that trades are not made on an exchange, but usually between two parties. If a bond has few buyers and sellers, there is liquidity risk, meaning an investor may not be able to sell a bond quickly enough to prevent or minimize a loss in value.

An investment grade security has a relatively low risk of default. Only companies rated at 'BBB-' or higher by Standard and Poor's or Baa3 by Moody's are considered investment grade. Anything below those ratings is considered non-investment grade and carries a higher risk of default.

A zero coupon is a bond that doesn’t pay interest until it reaches maturity. An investor receives one payment, which includes principal and interest, when the bond matures.

Unlike a zero coupon, a regular bond pays interest at regular intervals but also pays the bond’s face value to the bondholder at maturity.

When you sell a security, the cash from that sale generally settles in 1 business day. You can check the settlement date for your trades in Transactions. Keep in mind that trades will not settle on trading holidays.