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Will Lower Crypto Fees Help Morgan Stanley Win Retail Investors?
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Key Takeaways
Morgan Stanley will roll out crypto trading to E*TRADE's 8.6 million accounts later this year.
MS plans to charge 50 bps per trade, below standard retail pricing from Coinbase, Robinhood and Schwab.
Zerohash supports the offering, which includes Bitcoin, Ether and Solana in existing brokerage accounts.
Morgan Stanley (MS - Free Report) 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 - Free Report) , Robinhood Markets (HOOD - Free Report) and Charles Schwab (SCHW - Free Report) 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.
The offering is supported by Zerohash, allowing the bank to scale quickly while minimizing development costs. This complements Morgan Stanley’s wider crypto push, including a spot Bitcoin ETF, planned Ether and Solana ETFs, and efforts to build digital-asset custody capabilities.
In conclusion, Morgan Stanley’s combination of competitive pricing, trusted branding and a large brokerage base gives it a strong starting position. As crypto trading becomes a standard feature of mainstream investing platforms, many investors may choose the provider that offers the simplest and cheapest way to access digital assets within accounts they already use. In that environment, Morgan Stanley appears well-positioned to emerge as a significant competitor in retail crypto.
Morgan Stanley’s Price Performance, Valuation & Estimates
In the past six months, MS shares have gained 13.6% against the industry’s 1.3% decline.
Image Source: Zacks Investment Research
From a valuation standpoint, MS trades at a 12-month forward price-to-earnings (P/E) of 16.00X, above the industry average of 12.79X.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for Morgan Stanley’s 2026 earnings suggests a 16.1% rise on a year-over-year basis, while 2027 earnings are expected to grow 5.3%. In the past 30 days, earnings estimates for 2026 and 2027 have moved higher.
View the Zacks #1 Rank List
Image: Bigstock
Will Lower Crypto Fees Help Morgan Stanley Win Retail Investors?
Key Takeaways
Morgan Stanley (MS - Free Report) 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 - Free Report) , Robinhood Markets (HOOD - Free Report) and Charles Schwab (SCHW - Free Report) 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.
The offering is supported by Zerohash, allowing the bank to scale quickly while minimizing development costs. This complements Morgan Stanley’s wider crypto push, including a spot Bitcoin ETF, planned Ether and Solana ETFs, and efforts to build digital-asset custody capabilities.
In conclusion, Morgan Stanley’s combination of competitive pricing, trusted branding and a large brokerage base gives it a strong starting position. As crypto trading becomes a standard feature of mainstream investing platforms, many investors may choose the provider that offers the simplest and cheapest way to access digital assets within accounts they already use. In that environment, Morgan Stanley appears well-positioned to emerge as a significant competitor in retail crypto.
Morgan Stanley’s Price Performance, Valuation & Estimates
In the past six months, MS shares have gained 13.6% against the industry’s 1.3% decline.
Image Source: Zacks Investment Research
From a valuation standpoint, MS trades at a 12-month forward price-to-earnings (P/E) of 16.00X, above the industry average of 12.79X.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for Morgan Stanley’s 2026 earnings suggests a 16.1% rise on a year-over-year basis, while 2027 earnings are expected to grow 5.3%. In the past 30 days, earnings estimates for 2026 and 2027 have moved higher.
Image Source: Zacks Investment Research
Currently, MS carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.