Morgan Stanley Launches Crypto Trading at 50 Basis Points, Undercutting Rivals
Morgan Stanley rolled out a crypto trading pilot on its E*Trade platform at 50 basis points per trade, pricing below Coinbase and Charles Schwab. The move signals intensifying competition for retail crypto trading volumes among major brokerages.
Key Takeaways
- 1## Morgan Stanley Enters Retail Crypto Trading Morgan Stanley launched a crypto trading pilot on E*Trade, its retail brokerage subsidiary, charging 50 basis points per trade.
- 2The fee structure undercuts existing offerings from Coinbase and Charles Schwab, both of which charge higher rates on retail crypto transactions.
- 3The pilot allows E*Trade customers to trade crypto directly within their existing brokerage accounts without requiring a separate wallet or exchange sign-up.
- 4## Competitive Pricing Pressure The 50 basis point fee is among the lowest in the retail crypto trading market.
- 5Coinbase's standard retail trading fees range from 0.
Morgan Stanley Enters Retail Crypto Trading
Morgan Stanley launched a crypto trading pilot on ETrade, its retail brokerage subsidiary, charging 50 basis points per trade. The fee structure undercuts existing offerings from Coinbase and Charles Schwab, both of which charge higher rates on retail crypto transactions. The pilot allows ETrade customers to trade crypto directly within their existing brokerage accounts without requiring a separate wallet or exchange sign-up.
Competitive Pricing Pressure
The 50 basis point fee is among the lowest in the retail crypto trading market. Coinbase's standard retail trading fees range from 0.5% to 4% depending on order size and customer segment, while Schwab's crypto trading service charges comparable spreads. By pricing aggressively at launch, Morgan Stanley signals intent to capture market share in the growing segment of traditional retail investors seeking crypto exposure through established brokerage platforms.
Broader Market Context
The move reflects a broader trend of traditional finance firms integrating crypto products into existing infrastructure rather than building standalone exchanges. Schwab launched crypto trading in 2021, and Fidelity now offers crypto custody and trading services. Morgan Stanley's pilot suggests confidence in sustained retail demand and willingness to compete on fees—a shift from prior years when most brokerages treated crypto as a niche offering.
Why It Matters
For Traders
Retail traders with Morgan Stanley or E*Trade accounts now have a low-fee on-ramp to crypto; price competition may force other brokerages to lower fees within weeks.
For Investors
Expanded institutional and retail access through traditional brokerages lowers friction for capital inflow into crypto assets, potentially supporting longer-term adoption.
For Builders
Integration of crypto into legacy brokerage infrastructure reduces need for builders to capture retail users directly; focus shifts to protocol and DeFi layers where traditional platforms do not compete.
