JP Morgan is one of the largest financial institutions in the world and trades publicly on the New York Stock Exchange. Investors can start JP Morgan stock trading through several instruments, including speculation using derivatives, selling the stock short or investing for dividends.
This JPM trading tutorial covers the major price determinants, share history, dividend returns, and more. Find out how to buy, sell and trade JP Morgan stock in 2023. We have also ranked the top brokers for trading JP Morgan shares.
Top Brokers For Day Trading JP Morgan Chase
About JP Morgan
JP Morgan Chase is one of the “big four” banks in the US, along with Bank of America, Wells Fargo and Citigroup.
With over €3.5 trillion in total assets as of 2023, the firm deals in numerous elements of the financial sector, including investment banking, individual banking, credit cards, mortgages and loans.
The institution was created in its current form in 1996, though its oldest constituent bank can be traced back to 1799.
With over 250,000 global employees operating in over 100 regions worldwide, JPM is considered a giant of the finance world.
Key Stock Figures
The stock was IPO’d to the public in 1942 as JP Morgan & Co. Since 1983, there have been three stock splits – one in 1984, another in 1998 and the most recent in 2000.
The historical high of JPM was achieved in October 2011 at a price of $172.96, while the all-time low of the stock was $3.21 in 1990.
Its market cap as of 2023 stands at more than $385 billion.
Long-term investors can be attracted to a stock by a high, regular dividend. So, is JP Morgan stock a good investment for dividend bulls?
Since 1984, the bank has been paying shareholders a quarterly dividend. This is good for investors looking for a source of regular passive income.
The most recent JP Morgan stock dividend was $1.00 per share. Annualized, this equates to a yearly 3.05% dividend yield.
JP Morgan stock trading hours typically align with the NYSE market hours.
The main market session runs from 9:30 ET to 16:00 ET from Monday to Friday, though different hours will be in effect on public and bank holidays.
There is also a pre-market and after-market session in which limited trading can take place. The pre-market runs from 4:00 ET to 9:29 ET while the after-market runs from 16:00 ET until 20:00 ET.
There are multiple external factors to help traders determine whether JP Morgan stock is a buy or sell. Consider the following elements when building a JP Morgan stock trading strategy:
US Economic Health
Despite its global scale of operation, JP Morgan’s banking arm is focused on the US market. During times of good local economic health, customers will be more likely to take out credit and have funds within banking accounts. These elements will result in higher profits and potentially an elevated share price.
However, the inverse is also true – during times of poor US economic health, profits will diminish. This happened in 2022, where Q3 mortgage earnings were down over 66% compared to Q3 2021.
Lower earnings can convince investors to divest their shares from a firm, even in a company with strong fundamentals like JP Morgan.
Global Economic Health
As one of the largest investment banks in the world, JP Morgan’s operations are not limited to the US. As a result, global economic events will affect the profits of the firm.
Furthermore, global retail investors may have less money to invest during times of high inflation as financial priorities change. This can lead to the sale of existing JP Morgan stock and fewer new shares being purchased, triggering a share price decrease.
JP Morgan stock trading is considered by most as a “value” stock rather than a “growth” stock. This means that much of its worth to investors is based on its existing fundamentals and ability to pay a consistent and reasonable dividend.
For investors seeking stable sources of passive income or to diversify their portfolio away from growth stocks, a change in the dividend payments of JP Morgan will have a significant impact.
As of 2023, the current annualized dividend stands at around 3%. An increase in this figure may attract “dividend bulls”, while if the firm reduces this significantly or misses its historically reliable dividend payments, current investors may look to sell.
Pros Of JP Morgan Stock Trading
- Regular dividend – JP Morgan stock holds an appeal due to its regular quarterly dividend with a reasonable annual yield of around 3%.
- Trading vehicles – From CFDs to options to ETFs, there is plenty of choice when choosing a JP Morgan trading instrument.
- Solid financials – JP Morgan is a large and diversified company, which makes a stock collapse unlikely.
- Clear price determinants – JP Morgan stock prices are correlated closely with US economic health.
Cons Of JP Morgan Stock Trading
- Growth potential – There is arguably limited room for JP Morgan to significantly expand as a company vs smaller, emerging fintechs.
- Outperformed by larger market – Unfortunately, JP Morgan has consistently been outperformed by the wider US market over the last 20 years.
- Low volatility – Equities from other, more volatile markets may be more suited to day and swing trading.
Due to the high market cap of this company, there are plenty of trading products available that allow investors to buy, sell or hold JP Morgan stock. Here are some of the most popular ways to trade JP Morgan shares:
- Stocks – The most simple way to start JP Morgan stock trading is to buy or sell shares directly through a broker. Investors can go short or long on JP Morgan with minimal trade fees, and even zero commissions at some stock brokers.
- CFDs – CFDs are a leveraged derivative that allows traders to speculate on the price of an equity without owning the underlying asset, i.e the shares themselves. Leverage also means traders can magnify their potential returns (and losses) with a small upfront deposit.
- Options – Options trading provides investors with the opportunity to purchase or sell an equity at a predetermined future expiry time.
- Mutual Funds & ETFs – Traders can gain exposure to JP Morgan stock through diversified mutual funds and ETFs. JP Morgan shares will feature in large-cap, US and banking-themed baskets of stocks.
- Binary Options – Binary options are a simple way to speculate on an asset like JPM, betting on whether the share price will increase or decrease over a set period.
How To Trade JP Morgan Stock
Here is a short guide to teach you how to buy shares in JP Morgan:
Choose An Instrument
The first thing to decide is the trading vehicle you wish to use.
If you believe you can profit from leveraged, short-term speculation, an instrument like CFDs are a good choice. Longer-term plays can be made using stock trading or options. Passive income can be generated by holding JP Morgan stock for its quarterly dividends.
Find A Broker
When it comes to trading JP Morgan Chase stock, whether you wish to buy or sell, finding a good broker is crucial to secure and successful trading.
Investors should search for brokers that support their favored trading instrument, and then assess brokerages using criteria such as their regulation status, trading fees, payment provider support and trading platform and mobile app options.
Create An Account
Once you have chosen your broker, to trade JP Morgan shares you will have to create a live trading account. After completing any verification, you will then have to fund this account and wait for your deposit to settle (often near-instant).
Ensure that you have deposited enough funds to cover your planned trades, and decide upon an ample level of margin for derivative trades.
Make A Trade
For the final step of your JP Morgan trade, load up the broker’s trading platform and get ready to execute your order. Ensure that you have a clear plan, with trading strategies rooted in either fundamental or technical analysis.
Place your order and any stop loss or take profit levels. You can either monitor the markets using alerts or allow a bot to do this for you and manage your position based on preset parameters.
Final Word On Trading JP Morgan Stock
Should you buy JP Morgan stock? The equity boasts a regular dividend, a great range of trading instruments and a high market cap. However, other stocks will be more volatile and have higher growth potential. Crucially, JP Morgan stock has also been outperformed by the larger market, making it a difficult long-term single stock play to justify compared to a more diversified ETF or share portfolio.
Head to our list of the top brokers that offer JP Morgan stock trading to get started.
How Can I Buy JP Morgan Stock?
Sign up with a broker that offers direct trading of JP Morgan shares or a derivative, such as CFDs. Then open a live account, make a qualifying deposit, and open the broker’s platform or app to make a trade.
What Is The JP Morgan Stock Trading Fee?
Brokers charge different trading fees based on the type of instrument investors wish to use. However, simple stock trading can be done at low-fee or even zero-commission brokers. Traders using leveraged CFDs may also have to pay a fee to hold positions overnight.
What Are The JP Morgan Stock Trading Hours?
JP Morgan is listed on the NYSE and therefore trades within the exchange’s market hours. NYSE market hours run from 9:30 ET to 16:00 ET on weekdays, with pre-market and after-market hours sessions on either side of this main session.
What’s The JP Morgan Stock Price?
In recent years, the JP Morgan stock price has seen lows of $101.28 in September of 2022 and highs of $169.81 in January 2022. This January figure is close to the all-time high of $172.96.
Does JP Morgan Trade Cryptocurrency?
While there are plans for the bank to expand into the blockchain, investors that want to know how to buy JP Morgan cryptocurrency will likely be waiting a while longer for a coin release.