JPMorgan wipes out $5.5 billion in market cap of online brokers after saying it's giving users free trades

Getty/Mark Wilson

• JPMorgan announced Tuesday a digital-investing service that has free trades and no account minimum.
• Online brokers' stocks are getting hit hard on the news.
• JPMorgan shares are ticking higher.

Online brokers are under pressure Tuesday morning after JPMorgan announced a digital-investing service that gives users 100 free trades a year and has no account minimum.

The selling has wiped out $5.5 billion in market cap of the biggest online brokers with Charles Schwab (-$2.64 billion) and TD Ameritrade (-$2.18 billion) seeing the biggest impact. JPMorgan shares are marginally higher.

Here's a look at the scoreboard:

• E-Trade (ETFC): -4.5%
• TD Ameritrade (AMTD): -6.4%
• Charles Schwab (SCHW): -3.8%
• JPMorgan (JPM): +0.68%

Get the latest JPM stock price here.