Morgan Stanley Launches Low-Fee Crypto Trading Pilot on E*Trade
Morgan Stanley has launched a cryptocurrency trading pilot on its E*Trade platform, effective May 6, 2026. The pilot charges a competitive rate of 50 basis points on the dollar value of each transaction, undercutting standard retail pricing at major platforms like Coinbase, Robinhood, and Charles Schwab. The service is currently in a limited pilot phase, with full access expected to roll out to E*Trade's 8.6 million clients later in 2026.
The move is part of a broader trend of major U.S. financial institutions expanding into retail cryptocurrency trading. Charles Schwab, for instance, introduced spot Bitcoin (BTC) and Ethereum (ETH) trading in April 2026, charging 75 basis points per transaction. Goldman Sachs also filed with the SEC in April 2026 to launch a Bitcoin Premium Income ETF, showcasing the growing interest in crypto-related financial products.
Morgan Stanley's E*Trade pilot extends its recent push into the Bitcoin ETF space, where its spot Bitcoin ETF (ticker MSBT) recorded $30.6 million in inflows on its first day of trading. The pilot aims to provide direct retail trading access, competing with established crypto-native platforms. While E*Trade's 50-basis-point fee is competitive, it does not represent the lowest available pricing in the market, as Kraken Pro and certain Coinbase Advanced tiers offer lower rates for active traders.
The shift highlights how traditional financial institutions are moving beyond custody services and ETF products to offer direct trading access. This strategy aims to retain retail clients who might otherwise use crypto-native platforms for their trading needs.