Morgan Stanley has launched a cryptocurrency trading pilot on its E*Trade platform, charging clients 50 basis points per transaction — undercutting standard retail fees at Coinbase, Robinhood, and Charles Schwab. The move signals how traditional Wall Street firms are aggressively entering digital asset markets to compete for retail trading revenue.
Pilot program targets retail traders with lower fees
The pilot, confirmed by a Morgan Stanley spokesperson to Cointelegraph, is currently available to a limited group of clients. E*Trade’s 8.6 million users are expected to gain access later this year, according to a Bloomberg report published Tuesday. The 50 basis point fee applies to the dollar value of each crypto trade, making it cheaper than the standard retail pricing at Coinbase, Robinhood, and Charles Schwab, which charges 75 basis points.
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However, the bank’s pricing still trails the lowest tiers offered by Kraken Pro, Binance US, and certain Coinbase Advanced plans, which cater to more frequent or high-volume traders. The pilot represents a strategic push by Morgan Stanley to capture a share of the growing retail crypto market without matching the lowest fees available.
Wall Street’s accelerating crypto push
Morgan Stanley’s latest move comes roughly a month after it launched a spot Bitcoin ETF (ticker: MSBT) on the NYSE Arca exchange, which recorded $30.6 million in inflows on its first trading day. The bank is not alone in expanding crypto services. Charles Schwab introduced spot Bitcoin and Ether trading for retail clients on April 16, also charging 75 basis points per transaction. Goldman Sachs filed with the SEC in April to launch the Goldman Sachs Bitcoin Premium Income ETF, a fund that would generate income by selling call options on Bitcoin ETFs rather than holding Bitcoin directly.
Earlier infrastructure efforts include BNY Mellon’s digital asset custody platform, which went live in October 2022 and now allows select clients to hold and transfer Bitcoin and Ether. These developments show a broader trend of traditional financial institutions building crypto-native products rather than relying solely on third-party exchanges.
What this means for retail investors
For retail investors, the growing competition among Wall Street banks, fintech platforms, and crypto-native exchanges is likely to drive down trading fees and improve service quality. Morgan Stanley’s entry into crypto trading on E*Trade offers a trusted, regulated channel for clients who may have been hesitant to use standalone crypto platforms. The lower fee structure also pressures rivals to adjust their pricing or risk losing market share.
Still, investors should compare fee structures carefully. While Morgan Stanley’s 50 basis points is competitive for standard retail trading, high-volume traders may find better rates on dedicated crypto exchanges. The pilot phase also means full functionality and customer support are still being tested.
Conclusion
Morgan Stanley’s E*Trade crypto pilot marks a significant step in the convergence of traditional finance and digital assets. By offering lower fees than major competitors, the bank is positioning itself as a serious player in retail crypto trading. As Wall Street giants continue to roll out crypto products, the space for retail investors is becoming more competitive, regulated, and accessible.
FAQs
Q1: How much does Morgan Stanley charge for crypto trades on E*Trade?
Morgan Stanley charges 50 basis points (0.5%) per crypto transaction, which is lower than the standard retail fees at Coinbase, Robinhood, and Charles Schwab.
Q2: When will all E*Trade users get access to crypto trading?
The service is currently in pilot mode. Morgan Stanley expects to roll it out to E*Trade’s 8.6 million clients later in 2026, though no exact date has been announced.
Q3: How does Morgan Stanley’s fee compare to other platforms?
At 50 basis points, Morgan Stanley undercuts Charles Schwab (75 bps), Coinbase standard retail, and Robinhood standard pricing. However, Kraken Pro, Binance US, and Coinbase Advanced tiers offer lower fees for active traders.
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