Morgan Stanley $MS MS has made a strong bid for retail crypto investors by launching cryptocurrency trading on its E*TRADE platform at fees below those charged by major competitors. The service is currently being tested and is expected to be rolled out to all 8.6 million E*TRADE accounts later this year. At launch, customers will be able to trade Bitcoin, Ether and Solana directly from the same accounts they use for stocks, exchange-traded funds (ETFs) and options.
An advantage for Morgan Stanley is that it is charging 50 basis points (bps) per transaction, undercutting competitors like Coinbase Global COIN, Robinhood Markets HOOD and Charles Schwab $SCHW SCHW on standard retail pricing. Coinbase starts at roughly 60 bps, Schwab has indicated a 75-bps fee and Robinhood charges 95 bps at the entry level. Thus, Morgan Stanley’s lower fees will be attractive to cost-conscious investors who want crypto exposure without maintaining a separate account on a crypto-native platform.
Combined with the convenience of trading within E*TRADE, this pricing advantage could help Morgan Stanley capture meaningful market share as digital assets become more mainstream. Moreover, the strategy will offer broader benefits than just transaction revenues. By integrating crypto into E*TRADE rather than building a standalone exchange, Morgan Stanley will be in a position to deepen client engagement and keep more assets within its ecosystem.