Morgan Stanley is testing crypto trading on E*Trade, using price as a key differentiator in the retail market. According to Bloomberg, the pilot charges users 50 basis points per transaction, putting the service below several established crypto and brokerage platforms on cost.
That fee is lower than the 60 to 95 basis points charged by Coinbase, Robinhood and Charles Schwab, based on the report. The gap is meaningful. It gives Morgan Stanley a cleaner entry point as traditional financial firms push deeper into digital-asset trading.
Bank frames the move as more than a pricing play
Jed Finn, Morgan Stanley’s Head of Wealth Management, said the effort is not only about offering cheaper crypto trades. He described it as an attempt to “disintermediate the disintermediators,” presenting the initiative as a change in how clients gain access to digital assets rather than a simple product add-on.
The bank plans to extend the service to all 8.6 million E*Trade customers later this year. If the pilot expands as planned, Morgan Stanley would place crypto trading inside an established brokerage channel instead of building a separate retail-facing platform from scratch.
Crypto expansion now spans trading, funds and custody
The E*Trade rollout follows several recent crypto moves by the bank. Morgan Stanley has already launched a Bitcoin exchange-traded fund and has products linked to ether and solana in the pipeline. On the infrastructure side, it has applied for a national trust bank charter, a step that would allow it to directly custody digital assets.
Bloomberg also reported that the bank is weighing services that would let clients convert crypto holdings into exchange-traded products without selling them first. It is also preparing for potential tokenized equity trading later this year.
Competition rises in a lucrative retail market
The push comes as competition in consumer crypto trading remains intense. Coinbase generated $3.32 billion in consumer transaction revenue in 2025, while Robinhood reported nearly $1 billion in crypto-related revenue. Morgan Stanley’s latest move shows how incumbent financial firms are trying to compete across fees, distribution and custody as digital-asset demand reaches mainstream brokerage channels.