Morgan Stanley Undercuts Coinbase and Robinhood on Crypto With 0.50% Fees

• Morgan Stanley launched crypto on E*Trade at 0.50%, undercutting Coinbase, Robinhood, and Schwab instantly
• All 8.6 million E*Trade users get Bitcoin, Ethereum, and Solana access later in 2026, no separate account needed
• Morgan Stanley already has the cheapest Bitcoin ETF in the US at 0.14% and now wants spot trading too

Morgan Stanley is expanding its digital asset business with the launch of crypto trading on E*Trade. This marks one of the bank’s biggest retail crypto moves so far. The service is being introduced with a 0.50% transaction fee. It places it below several major competitors in the market.

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Morgan Stanley ETrade Crypto Launch Gives 8.6 Million Users Cheaper Bitcoin Access

The launch is currently limited to a pilot group. But the bank plans to extend access to all 8.6 million E*Trade users later this year. During the rollout, customers will be able to trade Bitcoin (BTC), Ethereum (ETH), and Solana (SOL) directly through the brokerage platform.

The lower pricing immediately puts Morgan Stanley’s crypto trading platform in competition with the existing retail ones. According to reports, Charles Schwab charges around 0.75% for spot crypto trading. Meanwhile, Coinbase retail fees can rise much higher depending on the payment method and trade size.

The latest move also continues Morgan Stanley’s overall push into digital assets. In April, the bank launched its spot Bitcoin ETF, MSBT, with a 0.14% expense ratio. The fund entered the market as one of the lowest-cost spot Bitcoin ETF products available in the US.

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Crypto Trading Moves Further Into Traditional Brokerages

Unlike cryptocurrency exchanges, Morgan Stanley is adding digital asset trading directly into an existing brokerage ecosystem. This gives E*Trade users access to crypto without opening a separate exchange account or moving funds to another platform.

The infrastructure behind the launch is being handled by digital asset firm Zerohash. This is providing custody, liquidity, and settlement services for the offering.

The latest launch comes as more traditional financial firms continue expanding crypto products amid rising institutional demand. In addition, renewed market activity tied to Bitcoin’s price recovery this year is also pertinent here.

Several in the community viewed Morgan Stanley’s latest move as a challenge to cryptocurrency exchanges.

Several firms, including Goldman Sachs, Fidelity, and Schwab, have increased their crypto offerings over the past year through ETFs, custody products, and direct trading services. Morgan Stanley’s move adds further pressure on platforms competing on crypto trading fees.

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