Morgan Stanley has launched cryptocurrency trading on its ETrade platform, marking its first direct push into retail crypto trading while offering lower fees than major competitors. According to multiple reports, the offering is currently in a pilot phase, with plans to expand access to ETrade's 8.6 million users later in 2026. The platform will initially support spot trading in major cryptocurrencies, including Bitcoin and Ethereum, without margin or derivatives. As reported by Bloomberg, the firm is charging 50 basis points on each crypto transaction based on the transaction amount, positioning itself below leading platforms. This pricing strategy undercuts Coinbase, which typically charges 1%–2%, and Robinhood, where fees and spreads can reach 1%–1.5%. The rollout positions the firm to compete more directly with established crypto and brokerage platforms such as Coinbase, Robinhood, and Charles Schwab.
Morgan Stanley's 50 basis points fee structure represents a significant competitive advantage in the retail crypto trading market. According to Bloomberg, this undercuts Coinbase, which typically charges 1%–2%, and Robinhood, where fees and spreads can reach 1%–1.5%. The pricing strategy is seen as a direct attempt to compete with crypto-native platforms by leveraging scale and lower costs. The firm aims to differentiate through lower trading costs and competitive fee structures as part of a broader Wall Street trend of integrating crypto services into traditional brokerage offerings. This approach reflects Morgan Stanley's commitment to providing cost-effective digital asset access to its substantial retail client base.
Morgan Stanley has been continuously expanding its crypto presence over the past year, demonstrating a comprehensive approach to digital asset services. According to Bloomberg, the firm has launched the lowest-fee Bitcoin ETF, plans to launch Ether and Solana ETFs, and has applied for a national trust bank license to provide digital asset custody. Future support is planned for institutional clients trading tokenized stocks. This expansion strategy positions Morgan Stanley to offer a complete suite of digital asset products across both retail and institutional segments, leveraging its traditional financial infrastructure and regulatory compliance capabilities to serve different market segments effectively.
While Morgan Stanley has previously offered crypto exposure through ETFs and institutional services, this marks its first integrated trading product for retail clients. According to Bloomberg and CoinPedia reports, the move reflects growing pressure on traditional brokers to meet demand for digital asset trading. By integrating crypto into its existing E*Trade platform, Morgan Stanley is positioning itself to compete more directly with exchanges that have historically dominated the market, targeting its substantial client base of 8.6 million retail users. The competitive pricing model could also push competitors to reassess their fee structures as more institutional players enter the space.
