Morgan Stanley Launches Crypto Trading on E*Trade With Lower Fees Than Rivals

Morgan Stanley has started rolling out crypto trading through E*Trade, marking one of the largest moves yet by a major Wall Street bank into direct retail digital asset access.

The launch initially supports Bitcoin, Ether, and Solana trading through E*Trade accounts, according to reports from Bloomberg, Reuters, and CoinDesk. Bloomberg reported that the platform is charging a 50 basis point transaction fee, positioning the service below some competing brokerage and crypto trading platforms on pricing.

Analysts say Morgan Stanley E*Trade crypto trading could accelerate broader retail adoption of digital assets through traditional brokerage platforms.

A Long-Building Expansion Into Crypto

The launch follows years of development after Morgan Stanley acquired E*Trade in a $13 billion deal that closed in October 2020. At the time, the acquisition was widely viewed as a push to expand the bank’s retail investing and self-directed trading business.

Public reports about direct crypto integration first surfaced in May 2025. Back then, Bloomberg reported that Morgan Stanley was preparing to add cryptocurrency trading to E*Trade. Several months later, reports revealed that the bank had selected Zerohash as its infrastructure partner and was targeting a 2026 rollout timeline.

The Zerohash partnership was first disclosed in September 2025. The current launch suggests the bank spent several years integrating E*Trade into its broader wealth management strategy before expanding into digital assets.

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Morgan Stanley Targets Mainstream Investors with Crypto Trading on E*Trade

Unlike crypto-native exchanges, the new service is designed around a familiar brokerage experience for mainstream retail investors.

According to E*Trade disclosures, digital assets are held through separate Zerohash accounts rather than directly through Morgan Stanley brokerage accounts. The company also notes that crypto assets are not protected by FDIC insurance or SIPC coverage.

That structure reflects a broader trend among large financial institutions. They enter crypto markets through third-party infrastructure providers instead of directly handling custody and settlement operations internally.

The launch also arrives as traditional brokerages face increasing pressure to offer digital asset access alongside stocks, ETFs, and options trading. The move strengthens competition in the retail crypto brokerage market.

Pricing May Become a Competitive Factor

One of the most notable details in the rollout is pricing.

Bloomberg reported that Morgan Stanley plans to charge 50 basis points per crypto transaction. Such fees would potentially undercut pricing offered by some established crypto platforms and brokerage competitors. Lower trading costs could become an important selling point for investors who already use E*Trade for traditional investing activity.

The timing may also increase competitive pressure on both crypto exchanges and traditional brokerages that are still developing digital asset offerings.

While firms including Coinbase and Robinhood already offer retail crypto trading, Morgan Stanley’s E*Trade enters the market with a large existing wealth management and brokerage customer base. the platform reportedly serves around 8.6 million client accounts, giving the bank a significant distribution advantage if adoption expands.

Regulatory Conditions Continue to Shape Expansion

The rollout also highlights how large banks continue to approach crypto cautiously despite growing institutional acceptance.

Rather than fully integrating crypto custody into its banking structure, Morgan Stanley is relying on external infrastructure. It is also limiting the initial asset selection to a small number of established cryptocurrencies. The service initially focuses on Bitcoin and Ether trading alongside Solana support. That approach may help reduce regulatory and operational risks while still allowing the firm to compete in the growing digital asset market.

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Crypto trading on Morgan Stanley‘s E*Trade could become an important test case for how traditional financial institutions introduce digital assets to mainstream retail investors. If adoption grows, other major brokerages may face pressure to accelerate their own crypto trading plans over the coming years.