E*TRADE From Morgan Stanley Review: Pros and Cons
E*TRADE from Morgan Stanley isn't available on Finder right now.
- Stock trade fee
- $0
- Minimum deposit
- $0
Our verdict
Commission-free stocks, advanced tools and access to mutual funds, bonds and ETFs make E*TRADE from Morgan Stanley a strong trading platform.
E*TRADE from Morgan Stanley is a comprehensive brokerage that provides a range of commission-free trading options, including stocks, ETFs, mutual funds and options. It boasts a wide array of investment choices and account types, supported by a robust suite of research and trading tools. This includes a robo-advisor for those interested in passive investing strategies. The platform features two main trading interfaces: E*TRADE Web and Mobile for casual investors, and Power E*TRADE Web and Mobile, which are tailored for more advanced traders. However, E*TRADE does have some gaps in its offerings, notably the absence of fractional shares trading, instant deposit capabilities and direct access to cryptocurrencies, which may limit its appeal to some modern investors.
Best for: Active traders, beginners and long-term investors.
Pros
-
Wide range of tradable assets
-
Commission-free stock, ETF and option trading
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Mobile, web browser and desktop trading platforms, with advanced trading tools and free research
-
Robo-advisor
-
Paper trading
-
Extensive lineup of account types
Cons
-
No crypto trading
-
No fractional share trading
-
No instant buying power
-
Low cash sweep rates
E*TRADE from Morgan Stanley at a glance
| Feature | Rating | Details |
|---|---|---|
| Investment options | ★★★★★ |
|
| Trading costs | ★★★★★ |
|
| Account fees | ★★★★★ | No annual fee, no inactivity fee and an average $75 full outgoing account transfer fee. |
| Account types and minimums | ★★★★★ |
|
| Trading platforms and technology | ★★★★★ |
|
| Features and amenities | ★★★★★ |
|
| Customer support | ★★★★★ | Live chat, phone and email support. |
| Mobile app | ★★★★★ | Google Play app reviews: 4.6/5 stars based on over 86,165 reviews Apple App Store app reviews: 4.7/5 stars based on over 380,915 reviews |
| Cash sweep rates | ★★★★★ | Rates of only 0.01%–0.15% APY depending on your balance but no minimum balance requirements. |
To learn how our star ratings are calculated, read our methodology.
E*TRADE is best for active traders, beginners and long-term investors
Pioneer in online investing and a leading US broker, E*TRADE is a strong option for traders and investors of all skill levels due to its comprehensive suite of trading platforms, extensive educational resources and diverse investment options. Active traders benefit from powerful tools and low fees, while beginners will appreciate its intuitive interface and learning materials. Long-term investors will enjoy a wide range of assets, a variety of tax-advantaged retirement accounts and extensive retirement planning resources.
- Active Traders. E*TRADE offers advanced trading platforms like Power E*TRADE, with real-time data, customizable charts and sophisticated tools for options trading.
- Beginners. E*TRADE provides extensive educational resources, including webinars, articles and tutorials, which help new investors learn the basics of investing and trading. E*TRADE’s robo-advisor, Core Portfolios, is also available for hands-off beginners looking to automate their portfolios.
- Long-term investors. E*TRADE supports a variety of investment options such as stocks, bonds, mutual funds and exchange-traded funds (ETFs). It also offers most individual retirement accounts (IRAs), as well as planning tools and resources to help manage long-term investment goals.
Latest E*TRADE updates
May 6, 2026: Morgan Stanley has introduced a low-fee crypto trading pilot on its E*Trade platform to compete with major platforms like Coinbase, Robinhood and Charles Schwab, .(1)
What we like about E*TRADE
E*TRADE from Morgan Stanley offers customers the full investor package through a wide range of securities and account types, commission-free stock, ETF and options trading, sophisticated trading platforms and human and automated advisory services.
Wide range of investment options and account types
Trade stocks, bonds, CDs, option, futures, ETFs, over 6,000 mutual funds and IPO shares when available. E*TRADE’s broad range of investment options lets traders and investors employ different investment strategies and diversify their portfolios from a single brokerage firm.
Meanwhile, E*TRADE has one of the most extensive lineups of account types among brokers we review. You’ll find everything from individual, joint and custodial brokerage accounts to education savings accounts to retirement accounts for individuals and small businesses.
Sophisticated trading platforms
E*TRADE offers four trading platforms that cater to beginners, experienced investors and advanced traders, making it a versatile and powerful choice for online trading and investing. These include E*TRADE web, E*TRADE mobile, Power E*TRADE web and Power E*TRADE mobile.
Here are some of the tools you’ll find across these platforms:
- Screeners
- Streaming real-time quotes, market and stock news and daily market commentary
- Advanced charts, with 145+ chart studies and drawing tools, automatic technical pattern recognition and analyzers
- Backtesters
- Free research from TipRanks, Thompson Reuters and other third-party providers
- Options trading risk-reward analysis tools
- Paper trading
- Webinars
Advisory services
Hands-off investors looking for managed accounts can make use of E*TRADE’s robo-advisor, Core Portfolios, or financial advisory services through E*TRADE’s parent company, Morgan Stanley. Core Portfolios is a standard robo-advisor that will build and manage a diversified portfolio of ETFs for you for a 0.30% annual advisory fee and $500 minimum.
Where E*TRADE falls short
E*TRADE is a comprehensive broker with lots to offer traders and investors but it has a couple drawbacks to consider:
- No access to cryptocurrency. While it offers many securities, E*TRADE’s is still a holdout on crypto. You can only gain indirect exposure to crypto through crypto trust ETFs.
- No fractional share trading. E*TRADE’s lack of fractional share trading can put off some beginner investors lacking a substantial starting capital or those just looking for flexibility when it comes to allocating their money.
- No instant buying power. It can take up to three days for your deposit to become available for trading.
- Low cash sweep rates. E*TRADE offers a cash sweep program but it’s rates pale in comparison to most of the competition. Balances under $5,000 earn a negligible 0.1% APY, while it takes a balance of more than $1 million to earn 0.15% APY. Compare that to Charles Schwab’s 0.45% APY, Fidelity’s 3.29% APY and Robinhood’s 3.35% APY with Robinhood Gold.
E*TRADE’s fees
| Type of fee | Fee details |
|---|---|
| Minimum deposit to open | $0 |
| Annual fee | $0 |
| Stock trading fee | $0 |
| Options trading fee | $0 |
| Options contract fees | $0.65 |
| Margin rate | 14.20% |
| Account transfer fee | $75 |
| Wire transfer out | $25 |
| Inactivity fee | $0 |
Is E*TRADE legit?
E*TRADE from Morgan Stanley is a legitimate trading platform. Launched in the early 1980s, the platform was acquired by Morgan Stanley in 2020. It’s regulated by the Financial Industry Regulatory Authority (FINRA) and the Securities and Exchange Commission (SEC). Through its membership of the Securities Investor Protection Corporation (SIPC), customers are protected up to the value of $500,000 for their cash and securities.
In terms of its platform security, E*TRADE is considered safe and secure. Customer assets are protected by the E*TRADE from Morgan Stanley Complete Protection Guarantee against unauthorized account use. E*TRADE employs fraud protection, privacy protection, encryption and network defenses and two-factor authentication.
E*TRADE customer reviews and ratings
| BBB accredited | No |
|---|---|
| BBB rating | D- |
| BBB customer reviews | 1.1 out of 5 stars, based on 47 customer reviews |
| Trustpilot score | 1.2 out of 5 stars, based on 686 customer reviews |
| Apple App Store Score | 4.7 out of 5 stars, based on 380 customer reviews |
| Google Play Score | 4.6 out of 5 stars, based on 86 customer reviews |
| Customer reviews verified as of | 07 May 2026 |
On Reddit, the sentiment is much of the same: varied with a mix of positive and negative reviews. Positive comments often praise the platform’s tools and resources for trading, while negative remarks tend to focus on customer service issues and technical glitches.
Compare E*TRADE to other platforms
8.6 Great
Available asset types
Stocks, Bonds, Options, Mutual funds, ETFs, CDs, Futures
Minimum deposit
$0
Signup bonus
Get up to $1,000terms apply
9 Excellent
Available asset types
Stocks, Options, Mutual funds, ETFs, Alternatives
Minimum deposit
$0
Signup bonus
Get up to $1,000 in stock
9 Excellent
Available asset types
Stocks, Bonds, Options, ETFs, Cryptocurrency, Treasury Bills, High-yield cash account
Minimum deposit
$0
Signup bonus
Earn a 1% match
Finder Scores: What they mean
If you want peace of mind, this rating will give it to you. These products offer the best value and outcomes considering various product features, terms, conditions and price.
Well-balanced products that provide what you need, offering a healthy mix of competitive features at a good price. However, they're not quite the best in class.
Bottom line: You can find better, but these products still offer reasonable value and have the basics sorted.
These products may not offer much value in the long run, and there are better options available.
Frequently asked questions
Sources
Your reviews
Matt Finder
Investments editor and market analyst
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