Morgan Stanley launches e-commerce cryptocurrency trading* with lower fees than Coinbase and Robinhood

TLDR

• Morgan Stanley is trialling cryptocurrency trading on E*Trade with a 0.50% per transaction fee
• The fee undercuts the benchmark retail prices of Coinbase, Robinhood and Charles Schwab
• The pilot will be expanded to all 8.6 million E*Trade customers later this year
• Morgan Stanley’s Bitcoin ETF (MSBT) has generated $92 million in total net inflows since its launch.
• Charles Schwab launched its own spot cryptocurrency trading last month with a yield of 0.75% per trade

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Morgan Stanley has launched a demo program for cryptocurrency trading on its E*Trade platform, setting a fee of 50 basis points (0.50%) per transaction. The bank confirmed the details to Cointelegraph following Bloomberg’s report on Tuesday.

BREAKING: $7.9 trillion Morgan Stanley is rolling out cryptocurrency trading, undercutting rivals with lower fees.

The Wall Street bank will charge E*Trade users a 0.50% transaction fee, undervaluing Coinbase, Robinhood, and Charles Schwab.

The rollout is now being tested, and all 8.6 million… pic.twitter.com/7IdYp8v4DW

— Currency Bureau (@coinbureau) May 6, 2026

Fees are lower than standard retail rates at Coinbase, Robinhood, and Charles Schwab. Schwab launched its spot trading of bitcoin and ether in April under the “Schwab Crypto” brand, with a fee of 0.75% per trade.

The E*Trade beta program is currently limited, but Morgan Stanley plans to open it to all 8.6 million E*Trade clients before the end of 2025.

The move comes on the heels of Morgan Stanley launching its position Bitcoin The ETF, symbol MSBT, was listed on the New York Stock Exchange in April. The fund carries a management fee of 0.14%, one of the lowest on the market.

Morgan Stanley’s Bitcoin ETF is gaining steam

According to data from Farside Investors, the MSBT ETF has recorded total net inflows of $92 million since its launch. On its first day of trading on the NYSE Arca exchange, the fund generated $30.6 million.

Eric Balchunas, a Bloomberg ETF analyst, described the launch as a “big deal,” noting Morgan Stanley $7 trillion in assets under management. He said the low-cost structure could make it easier for bank advisors to allocate client funds in Bitcoin.

Morgan Stanley is the first major bank to issue its own Bitcoin ETF. VanEck’s HODL ETF still has a fee-free advantage, but MSBT is among the cheapest in the space.

Other Wall Street firms are moving into cryptocurrencies as well

Goldman Sachs filed an application with the Securities and Exchange Commission in April to launch a Bitcoin Premium Income ETF. The proposed fund would generate income by selling call options Bitcoin Exchange-traded products, rather than holding Bitcoin directly.

BNY Mellon launched a digital asset custody platform in October 2022, allowing select clients to hold and transfer bitcoin and ether.

These moves show that many major financial institutions are expanding crypto services to retail and institutional clients.

Morgan Stanley is pricing its cryptocurrency trading service more aggressively than competitors. It uses a low-cost approach similar to what was applied to the MSBT ETF.

It’s worth noting that platforms like Kraken Pro, Binance US, and some Coinbase Advanced tiers offer fees lower than Morgan Stanley’s rate of 0.50% for some users.

E*Trade Cryptocurrency Demo is currently available in limited availability. It is expected to be fully rolled out to all customers later this year.