Morgan Stanley Launches Crypto Trading with Lower Fees on ETrade

What to Know:

• Morgan Stanley introduces crypto trading on ETrade with 50 basis point fees

• Pricing undercuts Coinbase Global Inc. and Robinhood Markets Inc.

• Move signals rising institutional competition in the crypto market

Morgan Stanley Expands Into Crypto Trading

Morgan Stanley has launched cryptocurrency trading on its ETrade platform as part of a broader push into digital assets.

The service is currently in a pilot phase and will roll out to its 8 point 6 million clients later this year. The bank aims to capture market share in a sector that traditional financial firms had largely avoided until recently.

LATEST: 🏦 Morgan Stanley has begun piloting crypto trading via E*Trade with lower fees than than Coinbase, Robinhood, and Schwab, according to Bloomberg. pic.twitter.com/rVXopGkBw2

— CoinMarketCap (@CoinMarketCap) May 6, 2026

Lower Fees Challenge Crypto Rivals

Morgan Stanley set transaction fees at 50 basis points per trade, positioning itself below major competitors.

For comparison, Coinbase Global Inc. charges starting fees near 60 basis points, while Robinhood Markets Inc. applies rates closer to 95 basis points. Charles Schwab Corp. recently indicated pricing around 75 basis points.

This pricing strategy highlights the bank’s intent to compete aggressively in the retail crypto trading space.

Strategy Focuses on Market Expansion

Executives say the initiative goes beyond pricing advantages.

According to leadership, the firm aims to integrate traditional finance with decentralized finance. The goal is to attract users who previously relied on crypto native platforms.

The company has partnered with Zerohash to support trading of assets such as Bitcoin Ethereum and Solana.

Regulatory Shift Supports Bank Entry

The expansion follows a changing regulatory environment in the United States.

After years of restrictions, policy shifts have opened the door for banks to participate more actively in crypto markets. Industry observers note that this change has accelerated institutional adoption.

Crypto Market Context

Bitcoin trades near 81000 while Ethereum holds around 2300, reflecting steady demand across major digital assets.

Institutional inflows through ETFs and trading platforms continue to support the broader market. Increased participation from banks may further strengthen liquidity and price stability.

Growing Competition in Crypto Trading

Traditional financial institutions are now entering a space once dominated by crypto native firms.

Coinbase Global Inc. remains the largest exchange in the United States, generating billions in transaction revenue. Meanwhile, Robinhood Markets Inc. continues to expand its crypto services.

Morgan Stanley’s entry adds new pressure as pricing competition intensifies.

Future Plans Signal Deeper Crypto Integration

The firm is preparing additional features, including:

• Conversion of crypto assets into ETF shares

• Expansion into tokenized equities trading

• Development of crypto custody services

These efforts indicate a long term strategy to embed digital assets across its platform.

Morgan Stanley’s move into crypto trading marks a significant step in institutional adoption.

Lower fees and expanded services position the bank as a strong competitor to established platforms. As regulation evolves, competition between traditional finance and crypto native firms is expected to increase.

FAQs

What fees does Morgan Stanley charge for crypto trading

The bank charges 50 basis points per transaction

How does it compare to Coinbase

Morgan Stanley offers lower fees than Coinbase and several competitors

Which assets are available

Bitcoin Ethereum and Solana are among the initial offerings

Why is this important

It shows growing institutional adoption and rising competition in crypto markets