Morgan Stanley has entered the crypto trading space with a competitive 0.5% fee on its E*Trade platform, directly challenging larger rivals like Coinbase and Charles Schwab. The pilot program launched on May 6, initially offering direct trades in Bitcoin, Ether, and Solana through a partnership with infrastructure provider Zerohash, which manages liquidity, custody, and settlement.
The 0.5% fee undercuts Schwab’s 0.75% rate, Fidelity’s 1% charge, and Coinbase’s retail fees that can exceed 0.5% depending on payment methods and tiers. Robinhood’s commission-free model still involves spreads, which typically range from 0.35% to 0.95% per trade. Eric Balchunas, an ETF analyst, noted that rivals are unlikely to accept this price pressure and predicted a fee compression race similar to the one seen among Bitcoin ETFs.
Clients get direct ownership of digital assets rather than fund-based exposure, eliminating extra management fees but exposing them to direct price volatility. Staking is not yet offered through this pilot. Zerohash handles all backend operations, ensuring private keys remain secure and away from users. This move aligns with Morgan Stanley’s broader digital asset strategy, which includes the MSBT Bitcoin ETF launched in April at a 0.14% expense ratio, which quickly attracted $103 million in inflows.
The bank is also developing its own digital wallet, expected to launch in the second half of 2026, which will support crypto alongside tokenized stocks, bonds, and real estate. Jed Finn, head of wealth management, described the crypto trading launch as just the beginning. Meanwhile, Morgan Stanley is pursuing an OCC national trust bank charter for direct crypto custody and staking services.
Coinbase generated $3.32 billion in consumer transaction revenue in 2025 and launched commission-free stock and ETF trading in February to compete with traditional brokerages. With 16,000 financial advisors managing $9.3 trillion in assets, Morgan Stanley’s distribution network gives E*Trade a significant advantage over crypto-native platforms. The full rollout to 8.6 million users could create one of the largest retail crypto on-ramps in the U.S. brokerage market.