Morgan Stanley enters retail crypto trading, undercuts Coinbase on fees

Morgan Stanley is rolling out cryptocurrency trading on its E*Trade platform, marking its first direct push into retail crypto trading while offering lower fees than major competitors.

According to a Bloomberg report, the offering is currently in a pilot phase, with plans to expand access to E*Trade’s 8.6 million users later in 2026.

Lower pricing targets crypto-native exchanges

Morgan Stanley is pricing trades at around 0.50% per transaction, positioning itself below leading platforms.

The report noted that this undercuts:

• Coinbase, which typically charges 1%–2%
• Robinhood, where fees and spreads can reach 1%–1.5%

The pricing strategy is seen as a direct attempt to compete with crypto-native platforms by leveraging scale and lower costs.

First direct retail offering from Morgan Stanley

While Morgan Stanley has previously offered crypto exposure through ETFs and institutional services, this marks its first integrated trading product for retail clients.

The platform will initially support spot trading in major cryptocurrencies, including Bitcoin and Ethereum, without margin or derivatives.

Wall Street competition in crypto heats up

The move reflects growing pressure on traditional brokers to meet demand for digital asset trading.

By integrating crypto into its existing E*Trade platform, Morgan Stanley is positioning itself to compete more directly with exchanges that have historically dominated the market.

The lower pricing model could also push competitors to reassess their fee structures as more institutional players enter the space. Also, the move shows traditional finance institutions taking a more significant position in crypto. 

Final Summary

• Morgan Stanley has launched crypto trading on its E*Trade platform, offering lower fees than competitors like Coinbase, according to Bloomberg.
• The move signals growing competition between traditional finance firms and crypto-native exchanges in the retail trading market.