Wall Street is finally warming up to the day trader.
JPMorgan Chase will introduce a new app this week that eliminates fees for the first 100 trades, an aggressive move to win over younger, price-conscious investors — and a warning shot to brokers who have been raking in fees.
The app, called You Invest, is the latest move from the biggest financial institutions that are dispensing with fees for some services or products entirely in order to hook millennials for life, and gain an even bigger share of the market back from established brokers and nimble startups.
“These bigger brokers and banks want to keep up and they’re trying to get new first-time investors, millennials, in their doors,” Arielle O’Shea, an investing specialist at NerdWallet, told The Post.
JPMorgan’s app, first announced Tuesday, has been in the works for more than two years. It sent shares of retail brokers down sharply, as JPMorgan, the largest US bank, is expected to use its scale to chip away at their customer bases.
“JPM entering the discount brokerage market is not your typical bank given its size, scale and global brand,” Daniel Fannon, analyst at Jefferies, wrote in a report last week, when the app was announced.
TD Ameritrade — which gets about 35 percent of its revenue from charging for trades — had its worst day in about six months, dropping 7.1 percent Tuesday, and has stayed lower.
Others, like Charles Schwab and E-Trade, which rely on fees for less than 10 percent of revenue, also saw a steep selloff.