Morgan Stanley began crypto trading on its E*Trade platform on May 6, 2026, charging clients 50 basis points per transaction on Bitcoin, Ether, and Solana. The pilot pricing comes in below Coinbase at 60 basis points, Charles Schwab at 75 basis points, and Robinhood at roughly 95 basis points, according to Bloomberg. The service is live for a small group of E*Trade users now, with all 8.6 million account holders set to gain access later this year. A basis point is one one-hundredth of a percent, so 50 basis points equals 0.50% of trade value.
Key takeaways
- Morgan Stanley is charging 50 basis points per crypto trade on E*Trade, the lowest headline rate among major US brokers offering retail crypto.
- The pilot covers Bitcoin, Ether, and Solana, with rollout to 8.6 million E*Trade clients planned for 2026.
- Coinbase shares pared morning gains to roughly 1.4% after the Bloomberg report broke, off session highs.
- Wealth chief Jed Finn framed the move as “disintermediating the disintermediators,” signaling deeper TradFi pressure on crypto-native exchanges.
Published: May 6, 2026, 16:15 UTC
Why Morgan Stanley is pricing below Coinbase
The 50 basis point fee resets the price floor for retail crypto trading at a major US broker. Coinbase has long defended its higher take rate by pointing to custody, security, and a deep order book. Schwab and Robinhood landed at 75 and 95 basis points respectively when each rolled out direct crypto trading. Morgan Stanley is using its existing brokerage rails and custody relationships to skip the markup that pure-play exchanges build into spreads.
The pilot launch follows a 2025 announcement from Morgan Stanley that E*Trade would add crypto trading in early 2026, first reported by PYMNTS. The rollout was paced behind regulatory clarity from the SEC and CFTC and the bank’s internal compliance review.
Jed Finn, head of wealth management at Morgan Stanley, told reporters the strategy goes beyond cheap fees. “Disintermediating the disintermediators” was his framing for what the bank is doing, according to CoinDesk. The implication is that crypto-native exchanges built their business by routing around traditional finance, and now the banks are routing around them.
Impact on Coinbase, Robinhood, and the broader market
Coinbase Global shares trimmed earlier gains on May 6, trading up around 1.4% in the morning session after the Bloomberg story moved markets, well off intraday highs. The move was modest because the pilot is small and limited to three assets. The longer-term concern for Coinbase is structural. Roughly 8.6 million E*Trade accounts represent a meaningful slice of the US retail crypto market, and price-sensitive retail traders have moved to lower-fee venues every time one has emerged.
Robinhood faces the most direct retail comparison. Its 95 basis point headline rate is nearly double Morgan Stanley’s, although Robinhood’s payment-for-order-flow model and zero-commission framing have historically offset higher take rates for new users. Schwab’s recent crypto launch at 75 basis points already looked vulnerable to a price war. It now sits between Coinbase and Morgan Stanley with no clear differentiation on price.
For the wider industry, the launch is the latest signal that crypto trading is becoming a brokerage feature rather than a standalone category. Robinhood’s Q1 2026 crypto revenue dropped 47% as event contracts and other products absorbed user attention, a trend that fee compression will likely accelerate.
What comes next
Morgan Stanley plans to expand beyond Bitcoin, Ether, and Solana once the pilot stabilizes, though the bank has not named additional assets or a timeline. The full rollout to 8.6 million E*Trade clients is expected over the second half of 2026, pending regulatory checkpoints and platform readiness.
Watch three things over the next quarter. First, whether Coinbase responds with fee cuts, fee waivers for select tiers, or a renewed push into staking and stablecoin yield to defend revenue. Second, whether other wirehouses follow, with Goldman Sachs and Bank of America the obvious candidates. Third, whether the SEC’s pending tokenized securities exemption framework changes what E*Trade and rivals can list. The SEC’s recent move toward an innovation exemption could open the door to a broader crypto product menu at every major broker.
Frequently asked questions
What does Morgan Stanley charge for crypto trades on E*Trade?
Morgan Stanley is charging 50 basis points, or 0.50%, per crypto transaction on E*Trade. That works out to $5 on a $1,000 trade. The pricing applies to the current pilot covering Bitcoin, Ether, and Solana, and Morgan Stanley has not indicated whether the rate will change at full rollout to 8.6 million E*Trade accounts later in 2026.
Which cryptocurrencies can E*Trade users trade?
The pilot supports Bitcoin (BTC), Ether (ETH), and Solana (SOL) at launch. Morgan Stanley has signaled that the asset list could expand once the pilot proves stable, but no additional tokens or stablecoins have been named. Trades are executed through E*Trade’s brokerage infrastructure rather than a separate crypto wallet.
How does Morgan Stanley’s fee compare to Coinbase and Robinhood?
Morgan Stanley’s 50 basis point fee undercuts Coinbase at 60 basis points, Charles Schwab at 75 basis points, and Robinhood at roughly 95 basis points. The gap is widest with Robinhood, where Morgan Stanley charges nearly half. Headline fees do not capture spread costs, so effective trade costs may differ across venues.
