Morgan Stanley Expands Crypto Trading With E*Trade Pilot Offering Lower Fees

E*Trade Crypto Trading Pilot Targets Retail Investors

Morgan Stanley has launched a crypto trading pilot on its E*Trade platform, marking a deeper push into digital assets for retail clients. The pilot introduces a fee structure of 50 basis points per transaction, positioning the bank below standard pricing offered by platforms like Coinbase, Robinhood and Charles Schwab.

The rollout is currently limited, but access is expected to expand to E*Trade’s 8.6 million users later in 2026, signaling a broader shift by traditional financial institutions toward direct crypto trading services.

Competitive Pricing and Market Positioning

While the pricing undercuts many retail platforms, some advanced trading services such as Kraken Pro, Binance US and premium tiers on Coinbase may still offer lower fees for active traders. The move highlights increasing competition between Wall Street firms and crypto-native exchanges for retail trading volume.

Broader Wall Street Crypto Expansion

Morgan Stanley’s latest initiative follows its recent launch of a spot Bitcoin exchange traded fund, which recorded $30.6 million in inflows on its first day of trading. Other institutions are also expanding their crypto offerings, including Charles Schwab’s rollout of Bitcoin and Ether trading and Goldman Sachs’ filing for a Bitcoin income-focused ETF.

Institutional Shift Toward Digital Assets

The expansion reflects a wider trend of traditional finance integrating digital asset services, as firms seek new revenue streams and respond to growing investor demand for regulated crypto exposure.