Looking at Morgan Chase's decision this week to enter the online brokerage business and offering 100 free trades for the first year, it shows that financial service companies are concentrating more on market share and looking to generate profitability through cross-selling other/more profitable products on their platform.
It reiterates the fact that larger organizations would continue to compete with innovative fintech startups using their huge pool of resources and existing client base. Competition among large fund houses and startups such as Robinhood and robo advising services leads to a beneficial market for the investors.
Further looking at JP Morgan's offering, I believe investment advisory would always be imperative for the investors (we believe in a long-term, value-investing approach) and the same has to be supplemented with a financial plan. Looking at Morgan Chase's decision this week to enter the online brokerage business and offering 100 free trades for the first year, it shows that financial service companies...
