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E*TRADE from Morgan Stanley Brokerage Account logo

E*TRADE from Morgan Stanley Brokerage Account

$0 online stock and ETF commissions, no minimum, $0.65 per options contract (less with 30+ trades a quarter) and strong tools.

Rates verified October 14, 2026
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The Bottom Line

Best for
Active investors and options traders who want strong tools and are happy to move cash into a money market fund.
Stock and ETF trades
$0 (verified Oct 14, 2026). All rates and fees

Key facts

  • Account minimum: None
  • Options: $0.65 per contract
  • Cash sweep: 0.01% APY

Pros

  • No minimum, no commissions on stocks and ETFs, no annual IRA fee
  • Volume discount on options and two strong trading platforms
  • Seven retirement account types

Cons

  • Default cash sweep paid 0.01% APY
  • Fractional shares from $5 on select stocks and ETFs only
  • $75 transfer-out fee and margin of 10.7% to 12.7%

At a glance

Rates verified October 14, 2026
Stock and ETF trades
$0 per online trade
Options
$0 base commission, $0.65 per contract ($0.50 with 30+ trades per quarter)
Mutual funds
6,000+ no-load, no-transaction-fee funds at $0
Account minimum
None
Cash sweep rate
0.01% APY under $500,000 (as of Oct 14, 2026), FDIC-insured. E*TRADE's money market sweep funds yielded about 3.5% on Oct 13
Margin rates
10.70% to 12.70%, depending on balance
IRAs
Traditional IRA, Roth IRA, Rollover IRA, Inherited IRA, SEP IRA, SIMPLE IRA, Solo 401(k) (no annual IRA fee)
Fractional shares
Yes, from $5 on select stocks and ETFs
Research and tools
Streaming quotes, charts, TipRanks research, screeners, an options analyzer and backtester, Morgan Stanley market news and analyst reports.
Support
Phone, online help and a weekly live webinar. No branches are listed. Phone hours for the main line are not stated.
Mobile app
E*TRADE mobile app and the Power E*TRADE app for stocks, ETFs, options and futures.
SIPC
Member
Transfer out
$75 for a full transfer out
Payment for order flow
Yes, Morgan Stanley receives payment for order flow from market centers on E*TRADE self-directed orders in exchange-listed stocks, ETFs and options, and will provide the amounts on written request.
Other fees
OTC stocks $6.95 ($4.95 with 30+ trades per quarter). Broker-assisted trades add $25. Paper statements $2 unless exempt.
Offer
New brokerage account: up to $1,500 cash credit (code OFFER26) with $1,000 or more of new funds within 60 days. New funds must stay 12 months after funding or the credit may be surrendered. (ends Oct 31, 2026)
Offer
New retirement account: up to $10,000 cash credit (code RETIRE26) with $1,000 or more of new funds within 60 days. (ends Oct 31, 2026)

Sources: us.etrade.com/what-we-offer/pricing-and-rates, us.etrade.com/what-we-offer/our-accounts/broker…, read October 14, 2026

What it costs in practice

$0 in commissions on 20 trades a year

Twenty online stock or ETF trades a year cost $0 in commissions here. Leave $10,000 sitting uninvested and the default setup pays about $1 over a year. E*TRADE's default sweep pays 0.01% APY. Rates move, and a high-yield savings account or a money market fund may pay more.

What to know before you open an account

Every provider has trade-offs. These are the ones we found on its own pages and in regulator records.

  • The default Bank Deposit Program paid 0.01% APY under $500,000 on 14 October 2026, while E*TRADE's own money market sweep funds yielded about 3.5%.
  • Broker-assisted trades cost an extra $25, and options carry regulatory and index-option fees on top of the per-contract fee.
  • Morgan Stanley receives payment for order flow on E*TRADE self-directed orders.
  • Fractional shares need $5 per order and cover select stocks and ETFs only.

Regulator record

  • Dec 9, 2024, SEC. SEC order against Morgan Stanley Smith Barney, E*TRADE's affiliate in the Morgan Stanley group: it failed to adopt policies to prevent advisors' misappropriation of client funds and failed to supervise four former advisors who made hundreds of unauthorized transfers. It had already compensated the victims. Penalty: $15 million. Read the source
  • Sep 20, 2022, SEC. SEC order against Morgan Stanley Smith Barney: over about five years it failed to protect personal information of about 15 million customers when decommissioning hard drives and servers that were later resold online. Penalty: $35 million. Read the source

Where these numbers come from

Each figure above was read on the provider's own page. Fees and rates change, so check the page before you act.

What is E*TRADE from Morgan Stanley Brokerage Account?

Sources read on the date shown
E*TRADE, part of Morgan Stanley, is a long-established online broker with a strong set of trading tools and two platforms, the E*TRADE app and Power E*TRADE. A brokerage account has no minimum or maintenance fees and charges $0 for online US stock and ETF trades, and it is a popular pick for options traders. Options cost $0 plus $0.65 per contract, dropping to $0.50 for clients with 30 or more trades a quarter. 6,000+ no-load, no-transaction-fee mutual funds are $0. IRAs come as Traditional, Roth, Rollover, Inherited, SEP and SIMPLE, plus an Individual 401(k), with no annual IRA fee. Fractional shares start at $5 on select stocks and ETFs. Margin runs 10.70% to 12.70%. A full transfer out costs $75. All figures were read on E*TRADE's own pricing and rate pages on 14 October 2026. The default cash sweep paid just 0.01% APY on 14 October 2026 against about 3.5% in E*TRADE's own money market funds, so check where your cash sits. Morgan Stanley receives payment for order flow, and the SEC fined its affiliate Morgan Stanley Smith Barney $15 million in 2024 and $35 million in 2022 over issues described below.
Sourceus.etrade.com ↗

Key details

$0 online US stock and ETF commissions, no minimumOptions $0.65 per contract, $0.50 with 30+ trades per quarter6,000+ no-load, no-transaction-fee mutual fundsTraditional, Roth, Rollover, Inherited, SEP, SIMPLE IRAs and an Individual 401(k)E*TRADE and Power E*TRADE platforms

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E*TRADE from Morgan Stanley Brokerage Account FAQ

Does E*TRADE charge commissions?

Online US stock and ETF trades are $0 (OTC stocks $6.95). Options cost $0 plus $0.65 per contract, or $0.50 with 30 or more trades a quarter. Broker-assisted trades add $25. Read on E*TRADE's pricing page on 14 October 2026.

What does E*TRADE pay on cash?

The default Bank Deposit Program paid 0.01% APY under $500,000 on 14 October 2026 (0.05% from $500,000, 0.15% from $1 million). Its money market sweep funds yielded about 3.5% on 13 October 2026 but are not FDIC-insured.

Which IRAs does E*TRADE offer?

Traditional, Roth, Rollover, Inherited, SEP and SIMPLE IRAs, plus an Individual 401(k). There is no annual IRA fee.

Are there sign-up offers?

E*TRADE shows a cash credit of up to $1,500 for a new brokerage account and up to $10,000 for a new retirement account, with funding conditions, for offers ending 31 October 2026. We list only offers with an end date.

Source: us.etrade.com