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E*TRADE from Morgan Stanley Review (2026): A Full-Featured Broker for Beginners and Active Traders

Review Updated
Joel O'Leary
Many or all of the products here are from our partners that compensate us. It’s how we make money. But our editorial integrity ensures that our product ratings are not influenced by compensation.

E*TRADE from Morgan Stanley is a top all-around brokerage in 2026 -- and this year it finally added two features we've been waiting for. You can now buy fractional shares and trade crypto directly, two things customers couldn't do a year ago.

Add in $0 commissions on stocks and ETFs, a new lineup of 0% expense-ratio index funds, and the pro-grade Power E*TRADE platform, and you get an excellent broker for first-timers and active traders alike.

Beginners get a clean app that's easy to learn. Active traders get serious charting and options firepower. Here's my honest take on where E*TRADE shines -- and where it still comes up short.

Our Rating:

4.90/5 Circle with letter I in it. Our ratings are based on a 5 star scale. 5 stars equals Best. 4 stars equals Excellent. 3 stars equals Good. 2 stars equals Fair. 1 star equals Poor. We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
= Best
= Excellent
= Good
= Fair
= Poor
Bottom Line

E*TRADE offers low fees and tons of account types. If you need it, chances are, E*TRADE has it. You can access advanced features through its popular Power E*TRADE platform. Open an E*TRADE account to trade fee-free mutual funds and do all your investing in one place.

Fees:

Commission-free; other fees apply

Account Minimum:

$0

Open and fund a brokerage account and get up to $1,500. Terms apply.

Circle with letter I in it. Open a new eligible E*TRADE brokerage account, fund your account within 60 days of opening, and earn a cash credit of up to $1,500, depending on the size of your deposit. Offer good for one use per customer, on a single account. Please read full terms and conditions on our website.

At Motley Fool Money, brokerages are rated on a scale of one to five stars. We primarily focus on fees, available assets, and user experience; however, we also take into account features like research, education, tax-loss harvesting, and customer service. Our highest-rated brokerages generally include low fees, a diverse range of assets and account types, and useful platform features.

Our aim is to maintain a balanced best-of list featuring top-scoring brokerages from reputable brands. Ordering within lists is influenced by advertiser compensation, including featured placements at the top of a given list, but our product recommendations are NEVER influenced by advertisers. Learn more about how Motley Fool Money rates brokerage accounts.

At Motley Fool Money, brokerages are rated on a scale of one to five stars. We primarily focus on fees, available assets, and user experience; however, we also take into account features like research, education, tax-loss harvesting, and customer service. Our highest-rated brokerages generally include low fees, a diverse range of assets and account types, and useful platform features.

Our aim is to maintain a balanced best-of list featuring top-scoring brokerages from reputable brands. Ordering within lists is influenced by advertiser compensation, including featured placements at the top of a given list, but our product recommendations are NEVER influenced by advertisers. Learn more about how Motley Fool Money rates brokerage accounts.

What I like about E*TRADE

E*TRADE's biggest strength is range. It's easy enough for a first-time investor on day one, but it has the depth to keep an active trader happy for years. Here are the features I like most.

Beginner-friendly app and resources

The core E*TRADE app is clean and simple, which matters a lot when you're just starting to invest. Opening an account, funding it, finding investments, and placing your first trade are all straightforward.

Most new investors don't need fancy features, and E*TRADE covers the basics without clutter. You can build watchlists and track performance, then lean on more advanced tools as your confidence grows.

Power E*TRADE gives active traders more horsepower

Power E*TRADE is the platform for serious, active traders. It puts charts, watchlists, and order tickets on one "mission control" screen, and you can use it on web, mobile, or desktop.

Standout tools include:

  • Technical pattern recognition: Flags potential setups by tracking support and resistance levels and key price moves.
  • Advanced charting: Flexible charts with common indicators like MACD, so you can spot trends faster.
  • Strategy tools: Set your market outlook and get options strategies that fit, ranked by risk and reward.
  • Options analytics: Payoff and profit-and-loss diagrams plus detailed options chains make complex trades easier to weigh.
  • Real-time insights: Live news and analysis so you're not trading blind.

It's one of the better options trading platforms out there.

Fractional shares let you start small

E*TRADE now offers fractional-share trading, a feature released in mid-2026. You can buy a slice of an eligible stock or ETF for as little as $5, so a high share price no longer keeps you out.

The rollout is still expanding -- it started with a set of eligible stocks and ETFs and keeps growing. Check the trade ticket to confirm a specific stock qualifies before you buy.

A wide range of investments, including 0% index funds

E*TRADE supports stocks, ETFs, options, mutual funds, bonds, and CDs. Like most of today's best brokers, it charges $0 commissions on online U.S.-listed stocks, ETFs, mutual funds, and options.

Another unique perk for long-term investors: E*TRADE offers a handful of index funds with a 0% expense ratio, covering large-cap, total market, international, municipal bonds, and U.S. bonds. That's the kind of low-cost, "set it and forget it" core I like for a buy-and-hold portfolio.

It's also solid for retirement savers, with traditional, Roth, and other IRAs on offer -- worth a look if you're comparing the best IRA accounts. And if you want cash and investments under one roof, E*TRADE offers banking too, including a savings account and CDs.

IPO access through the New Issue Center

E*TRADE lets eligible investors buy into IPOs before they hit the open market, through its New Issue Center. Being part of Morgan Stanley (one of Wall Street's biggest IPO underwriters) gives it a pipeline to new deals that most brokers can't match.

That's a genuine edge if you like getting in early on new listings -- and it's a big reason E*TRADE lands on lists of the best brokers for IPO access.

Here's how it works. You complete an investor profile so E*TRADE can confirm you're eligible, review the prospectus, then submit a conditional offer to buy. Just know that access to all IPOs isn't a sure thing. Shares are limited, E*TRADE allocates them at its own discretion, and you may end up with fewer than you asked for, or none at all.

Direct crypto trading

E*TRADE now supports direct crypto trading, another gap it closed in 2026. You can buy, sell, and hold Bitcoin, Ethereum, and Solana through a linked account, with a trading fee of 0.50%.

That's a shorter list of cryptocurrencies than a dedicated crypto exchange. But for investors who want a little crypto next to their stocks, it's a convenient option that didn't exist here before.

Alternatives to Consider

We recommend comparing brokerage options to ensure the account you're selecting is the best fit for you. To make your search easier, here's a short list of our best trading platforms of 2026.

Broker Best For Commissions Learn More
Logo for Fidelity
5.00/5 Circle with letter I in it. Our ratings are based on a 5 star scale. 5 stars equals Best. 4 stars equals Excellent. 3 stars equals Good. 2 stars equals Fair. 1 star equals Poor. We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
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Full-service investing at every experience level $0 commission for online U.S. stock and ETFs*. No account fees****.
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On Fidelity's Secure Website.

Logo for Charles Schwab
4.90/5 Circle with letter I in it. Our ratings are based on a 5 star scale. 5 stars equals Best. 4 stars equals Excellent. 3 stars equals Good. 2 stars equals Fair. 1 star equals Poor. We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
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= Excellent
= Good
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Low-cost investing with a full-featured platform $0 stock, ETF, and Schwab Mutual Fund OneSource® trades. No fees to buy fractional shares.
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On Charles Schwab's Secure Website.

Logo for Robinhood
4.80/5 Circle with letter I in it. Our ratings are based on a 5 star scale. 5 stars equals Best. 4 stars equals Excellent. 3 stars equals Good. 2 stars equals Fair. 1 star equals Poor. We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
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= Excellent
= Good
= Fair
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Low fees on stocks, ETFs, crypto, and options $0 on trades of stocks, ETFs and their options. Other fees may apply.
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On Robinhood's Secure Website.

Downsides you should consider

E*TRADE does a lot right, but a few things could be dealbreakers for certain investors.

It's not for advanced crypto traders

As of the 2026 launch, E*TRADE's crypto lineup only covers Bitcoin, Ethereum, and Solana. If you want a wider menu or advanced crypto features, a dedicated exchange will serve you better. The 0.50% trading fee is relatively low, but not rock-bottom -- which is only a real problem for high-volume traders.

Advanced products and some funds carry fees

Basic stock and ETF trades are commission-free, but advanced trades cost more. Options cost $0.65 per contract, and futures are $1.50 per contract.

E*TRADE no longer charges its own early-redemption fee on online mutual fund trades, but individual funds can still have their own expense ratios or short-term redemption rules, so read the fine print.

Fees and pricing

Here are the main pricing points:

Investment Type E*TRADE Online Pricing (Typical)
Stocks & ETFs $0
Mutual funds $0
Options $0 + $0.65 per contract (or $0.50 with 30+ trades per quarter)
Futures $1.50 per contract
Bonds & CDs (online secondary trades) $1 per bond (min $10, max $250)
Crypto 0.50% per trade
Data source: E*TRADE pricing and fees

Note: Some funds carry their own expense ratios or redemption rules, and certain products or trade methods can be priced differently.

E*TRADE customer service

E*TRADE's main customer service line is available 24/7. You can reach a representative about a brokerage or bank account at 800-387-2331 any time, day or night, which is a real comfort if a problem pops up after hours.

E*TRADE also offers live chat and a searchable online help center, both reachable from its website and mobile app. There are no physical branches, so all support is remote.

How to open an E*TRADE account

Getting started with E*TRADE is quick:

  1. Go to the E*TRADE website or download the app.
  2. Pick your account type (brokerage, retirement, and so on).
  3. Enter your personal and financial details.
  4. Link a funding source, and you're set.

Already have investments elsewhere? See our guide on how to transfer stocks between brokerages to move them over.

Final thoughts

E*TRADE is a strong all-around brokerage that works for newer investors and active traders alike.

The standard experience is clean and covers what most people need, while Power E*TRADE brings depth for charting and options.

In 2026, E*TRADE rolled out crypto spot trading, fractional share investing, and a few other platform enhancements. It's a full-featured broker that can serve almost any retail investor's needs.

If you want a well-rounded brokerage, E*TRADE is a smart pick. Ready to start? You can open an account on E*TRADE's website.

FAQs

  • Yes. E*TRADE now offers direct crypto trading, letting you buy, sell, and hold Bitcoin, Ethereum, and Solana through a linked account. The trading fee is 0.50% per trade. The available crypto list is smaller than a dedicated crypto exchange, but it sits right alongside your other investments.

  • Yes. E*TRADE added fractional-share trading in 2026, so you can buy a slice of an eligible stock or ETF for as little as $5. The feature is still expanding to more securities, so check the trade ticket to confirm a specific stock qualifies before you buy.

  • Morgan Stanley owns E*TRADE. Morgan Stanley acquired E*TRADE in 2020, and the platform now operates as "E*TRADE from Morgan Stanley." Your self-directed accounts still work the same way, with Morgan Stanley's resources behind them.

  • There's no minimum deposit to open an E*TRADE account. Some mutual funds or ETFs set their own minimum purchase amounts, so plan for those when you fund the account.

  • Yes. E*TRADE accounts carry SIPC protection up to $500,000, which covers securities if the brokerage fails. That protection does not cover normal market losses -- if your investments drop in value, that risk is still yours.