Morgan Stanley vs JP Morgan Chase: Which is Better?

Morgan Stanley and JPMorgan Chase are two financial industry titans that we often hear about in the news. However, it’s common for people to be confused about the difference between the two companies, perhaps because they both have “Morgan” in their name. In this article, we’ll quickly explain the differences between Morgan Stanley and JPMorgan Chase.Even though there is a lot of overlap between the services offered by Morgan Stanley and JPMorgan Chase, the main difference between the  two is that Morgan Stanley does not have retail banking operations. Meanwhile, JPMorgan Chase has significant retail banking operations under the brand Chase.Data as of June 4, 2024.Although both companies are very large, JPMorgan is significantly larger than Morgan Stanley. With a market cap of $569 billion, JPMorgan Chase is the world’s largest bank by market cap and ranked 13th among all companies globally. Meanwhile, Morgan Stanley’s market cap of $156 billion makes it the 85th largest company in the world as of early June 2024. Although Morgan Stanley and JPMorgan Chase are two completely separate companies today, they do share a common history. Both companies trace their roots back to J.P. Morgan & Co., an American bank founded by wall Street titan J.P. Morgan in 1871.In 1933, J.P. Morgan & Co. split into three companies – J.P. Morgan & Co. (the predecessor to JPMorgan Chase), Morgan Stanley and Morgan Grenfell. This was because of the Glass-Steagall Act, which barred corporations from offering investment banking and commercial banking business as a single holding entity.Now, let’s take a look at a quick overview of Morgan Stanley and JPMorgan Chase to better understand the similarities and differences between the two companies.Morgan Stanley is a major investment bank and financial services firm that is considered systemically important by the FSB (Financial Stability Board). The company’s operations can be divided into three main business segments.The company’s institutional securities business serves major clients such as corporations, governments, other financial institutions, as well as ultra high net worth individuals. It offers services such as investment banking, financial advisory services, and market-making activites in equities, fixed income products, foreign exchange and commodities.The wealth management business provides brokerage, investment advisory services, wealth planning, insurance, credit and other services for individuals and SMEs.Morgan Stanley’s investment management business provides asset management, merchant banking and real estate investment services to  government entities, sovereign wealth funds, endowments, foundations and other institutions.JPMorgan is the world’s largest bank by market capitalization, and the world’s 5th largest bank in terms of total assets. The company’s activities can be divided into six main segments: asset and wealth management, commercial banking, consumer and community banking, corporate and investment banking, corporate functions and technology.JPMorgan Chase has two main subsidiaries: J.P. Morgan and Chase. J.P. Morgan is focused on providing financial services to governments, corporations, institutional investors and high net worth individuals. Meanwhile, the Chase subsidiary offers consumer and commercial banking services.When comparing Morgan Stanley vs. JPMorgan Chase, it quickly becomes apparent that the main difference between the two financial institutions is that JPMorgan Chase caters to both institutional investors (J.P. Morgan subsidiary) and retail customers (Chase subsidiary), while Morgan Stanley is primarily focused on institutional investors and high net worth individuals, largely forgoing retail banking.If you are looking to learn more about the banking sector, make sure to take a look at our list of the best banks in the world.