Morgan Stanley bought E*TRADE in 2020 and owns it now

Yes. Morgan Stanley, the investment bank and financial services company, acquired E*TRADE Financial Corporation in a deal that closed in October 2020. Morgan Stanley paid approximately $13 billion for the company. E*TRADE operates as a subsidiary of Morgan Stanley and continues to run its brokerage platform under the E*TRADE brand name.

The acquisition was announced in July 2019 and took over a year to complete because it required regulatory approval from the Federal Reserve and the Securities and Exchange Commission. During that time, E*TRADE continued operating independently. After the deal closed, Morgan Stanley integrated E*TRADE's operations into its own structure, but kept the E*TRADE platform and brand separate so existing customers could keep using the service they were familiar with.

Key Takeaways

  • Morgan Stanley owns E*TRADE as of October 2020, when it completed a $13 billion acquisition of the company.
  • E*TRADE still operates under its own brand and platform — your account, login, and trading interface have not changed because of the ownership change.
  • Morgan Stanley is a major investment bank regulated by the Federal Reserve and SEC, so E*TRADE's regulatory oversight did not change.
  • Customer protections like SIPC coverage (up to $500,000 per account) remain in place under Morgan Stanley's ownership.

What changed for E*TRADE customers after the acquisition

For most E*TRADE account holders, the day-to-day experience stayed the same. You still log in to the same website or mobile app, your account number did not change, and your holdings remained exactly as they were. Morgan Stanley did not force existing customers to move their accounts or change brokers.

Behind the scenes, Morgan Stanley began moving E*TRADE's technology infrastructure and some back-office operations onto its own systems over time. This process took several years and included integrating E*TRADE's customer service teams with Morgan Stanley's support structure. Some customers reported longer wait times during the transition period, but the core trading platform and account features remained stable.

Morgan Stanley also began offering E*TRADE customers access to some of Morgan Stanley's wealth management services and investment products, though this was optional. Existing E*TRADE customers were not required to use these services or change their account type.

How Morgan Stanley's ownership affects account safety and insurance

E*TRADE accounts are still protected by the Securities Investor Protection Corporation (SIPC), which covers up to $500,000 per account if the brokerage fails. This protection did not change when Morgan Stanley took over. SIPC coverage applies to cash balances and securities held in your account, though it does not cover losses from market declines or poor investment choices.

Morgan Stanley itself is a much larger and more established financial institution than E*TRADE was as an independent company. It is regulated by the Federal Reserve, the SEC, and the Financial Industry Regulatory Authority (FINRA). This means E*TRADE's regulatory oversight actually expanded under Morgan Stanley's ownership, not weakened.

Your account information and login credentials remain secure under the same data protection standards that applied before the acquisition. Morgan Stanley has not announced any changes to how customer data is stored or encrypted.

Why Morgan Stanley bought E*TRADE

Morgan Stanley wanted to expand its retail brokerage business and reach more individual investors. Before the acquisition, Morgan Stanley's retail brokerage operations were smaller than E*TRADE's. By buying E*TRADE, Morgan Stanley gained millions of active customer accounts and a well-known brand in the retail investing space.

The acquisition also gave Morgan Stanley access to E*TRADE's technology platform and customer service infrastructure. Rather than building these systems from scratch, Morgan Stanley could integrate E*TRADE's existing capabilities into its own operations. This was more cost-effective than developing competing technology independently.

Morgan Stanley also saw an opportunity to cross-sell its wealth management and advisory services to E*TRADE's customer base. Many E*TRADE customers who grew their portfolios might eventually want access to financial advisors or more complex investment products — services Morgan Stanley already offered to its own clients.

Whether E*TRADE's fees and features changed after the acquisition

E*TRADE's core trading fees and account features have remained largely unchanged since Morgan Stanley took over. The platform still offers commission-free stock and ETF trading, which was already in place before the acquisition. Account types like cash accounts, margin accounts, and retirement accounts (IRAs, Roth IRAs, SEP IRAs) continue to work the same way.

Some fees have changed over time, but these changes were not unique to E*TRADE — most brokerages adjusted their fee structures during the same period. For example, some account maintenance fees or inactivity fees were modified, but these adjustments happened gradually and were communicated to customers in advance.

Morgan Stanley has not eliminated any major E*TRADE features or forced customers onto a different platform. The E*TRADE mobile app, web platform, and customer service phone lines all remain available. If you have an E*TRADE account, you can continue using it exactly as you did before the acquisition.

What happens if you want to move your account

You have the right to transfer your account to another brokerage at any time. The process is called an ACAT transfer (Automated Customer Account Transfer), and it is a standard industry procedure. You contact the new brokerage where you want to move your account, and they handle most of the paperwork and coordination with E*TRADE.

ACAT transfers typically take five to seven business days to complete. During the transfer, your positions remain invested — you do not have to sell everything and move cash. Some brokerages charge a transfer fee (usually $0 to $75), though many waive this fee to attract new customers. Check with the brokerage you are moving to before you start the transfer.

If you want to stay with E*TRADE, there is no action required on your part. Morgan Stanley has stated that it intends to keep E*TRADE operating as a separate brand and platform for the foreseeable future.

Frequently Asked Questions

Will Morgan Stanley force me to close my E*TRADE account?

No. Morgan Stanley has not announced any plans to force existing E*TRADE customers to close their accounts or move to a different platform. E*TRADE continues to accept new account openings and serve existing customers under the E*TRADE brand.

Does Morgan Stanley have access to my E*TRADE account information?

Morgan Stanley owns E*TRADE, so it has access to account information as part of normal business operations. However, your account data is protected by the same privacy and security standards that applied before the acquisition. Morgan Stanley is required by law to protect customer information and cannot share it with third parties without your consent.

Are my investments safer now that Morgan Stanley owns E*TRADE?

Your account protections have not changed. SIPC coverage still applies, and Morgan Stanley's regulatory oversight is actually more extensive than E*TRADE's was as an independent company. Morgan Stanley is a larger, more established institution, which some investors view as a stability advantage.

Can I still use E*TRADE's mobile app and website?

Yes. E*TRADE's mobile app and website continue to function the same way. Morgan Stanley has maintained the E*TRADE platform and brand as a separate product line within its business. You log in and trade exactly as you did before the acquisition.

What if I do not want Morgan Stanley to own my brokerage?

You can transfer your account to another brokerage using an ACAT transfer, which takes five to seven business days. Contact the brokerage where you want to move your account, and they will handle the transfer process. Some brokerages waive transfer fees to attract new customers.