Morgan Stanley to offer crypto trading on E*Trade with lower fees
Morgan Stanley plans to launch crypto trading on its E*Trade platform later this year, targeting retail volume with lower costs. In the pilot, it charges 50 bps of transaction value, below Coinbase, Robinhood, and Charles Schwab (around 60–95 bps). The rollout is expected to reach E*Trade’s 8.6 million customers.
The move is framed as more than pricing. Jed Finn, head of Wealth Management, said it aims to “disintermediate the disintermediators,” changing how clients access digital assets.
The offering follows Morgan Stanley’s broader crypto expansion, including a Bitcoin ETF launch. Further products are planned for Ether- and Solana-linked exposure. The bank is also pursuing a national trust bank charter to enable direct crypto custody, exploring workflows that can convert crypto holdings into ETFs without selling, and preparing for potential trading of tokenized stocks.
For crypto traders, the near-term impact is potential fee compression in retail spot-adjacent trading and incremental demand from E*Trade’s large distribution base. Over time, Ether/Solana ETF-linked products plus deeper custody and “convert-to-ETF” rails could widen on-ramps and liquidity.
Bullish
Morgan Stanley bringing crypto trading to E*Trade at 50 bps is a clear signal of fee compression pressure on retail venues. Lower fees can improve trading frequency and accessibility, especially when paired with E*Trade’s 8.6 million user base—potentially boosting spot-adjacent demand in the short term.
Over the medium term, the plan to expand beyond BTC into Ether- and Solana-linked ETF exposure, together with moves toward direct custody (trust bank charter) and workflows that convert holdings into ETFs, should strengthen distribution and liquidity pathways. That combination is typically supportive for underlying liquid coins because it widens on-ramps rather than relying solely on single exchange onboarding.
Because the article focuses on retail access and market-structure changes (pricing and distribution) rather than an immediate regulatory or protocol shock, the price impact is likely more constructive than negative for BTC, ETH, and SOL.