Morgan Stanley's full-service brokerage pairs $0 commissions and free dividend reinvestment with institutional-grade research—and in 2026 it finally added direct fractional shares and crypto trading.
Updated August 26, 2026
E*TRADE was acquired by Morgan Stanley in 2020, bringing institutional-grade resources to retail investors. The combination offers the best of both worlds: E*TRADE's user-friendly platforms with Morgan Stanley's research prowess.
Clients can access Morgan Stanley research reports, analyst insights, and sophisticated trading tools that were previously available only to wealth management clients.
The integration keeps deepening: in May 2026 Morgan Stanley launched crypto trading on E*TRADE with a 0.50% transaction fee—undercutting Coinbase, Robinhood, and Schwab—with custody handled by Zerohash. Bitcoin, ether, and solana are available, with access expanding to all 8.6 million clients through 2026.
E*TRADE offers free dividend reinvestment for most dividend-paying U.S. stocks and ETFs. DRIP purchases are commission-free and buy fractional shares automatically when the dividend doesn't cover a full share.
You can enable DRIP per security, choosing which holdings should reinvest dividends and which should pay out cash. Enrollment takes a minute through account settings, and reinvestment happens automatically on the payment date.
For years DRIP was the only way to own fractional shares at E*TRADE. That changed in 2026: direct fractional-share purchases began rolling out in the second quarter, starting with S&P 100 stocks and expanding in waves. Until the rollout completes, DRIP remains the most reliable way to put every dividend dollar to work.
E*TRADE's biggest long-standing gap—no direct fractional-share purchases—is finally closing. Starting in Q2 2026, eligible customers can buy fractions of listed stocks directly, beginning with a pilot based on S&P 100 securities and expanding through additional waves.
The rollout has limits worth knowing: not every security is eligible yet, OTC stocks are excluded, and dollar-based orders ("buy $50 of Apple") haven't launched—orders are placed in share quantities. Morgan Stanley has said dollar-amount buying is a later phase.
For dividend investors, this pairs nicely with DRIP: you can now build a position in a high-priced dividend stock with a partial share, then let reinvestment compound it.
E*TRADE's research offerings are among the best in the industry. You get access to reports from Morgan Stanley, Morningstar, MarketEdge, Moody's, and more—all included free.
The stock screener lets you filter by dividend yield, payout ratio, dividend growth, and dozens of other fundamental factors. You can save custom screens and set up alerts.
For dividend investors specifically, you can access detailed dividend history, ex-dividend dates, payment schedules, and analyst projections—data that's often sparse at competitors like Robinhood.
E*TRADE offers five distinct platforms catering to different investor types. The standard web platform is clean and straightforward for buy-and-hold investors.
Power E*TRADE is a browser-based platform with advanced charting, real-time streaming, and options analysis tools. It's excellent for active traders without requiring software downloads.
Power E*TRADE Pro is the downloadable desktop platform with the most advanced features—customizable layouts, multi-monitor support, and complex options strategies. Professional-grade but still accessible.
E*TRADE offers access to 5,000+ no-transaction-fee mutual funds from major fund families. This is among the largest selections available at any broker.
They also offer several zero-expense-ratio mutual funds for cost-conscious investors. Combined with commission-free ETF trading, you have extensive options for building a diversified portfolio.
Transaction-fee funds cost $9.95 per trade if you venture outside the NTF selection.
E*TRADE's educational content is comprehensive, covering everything from investing basics to advanced options strategies. Video tutorials, articles, and interactive courses are all available.
Customer support includes 24/7 phone support, live chat, and the ability to visit physical branches for in-person help (through Morgan Stanley locations).
The knowledge base is extensive, though some users find the website navigation confusing when trying to locate specific features or settings.
Transparent breakdown of all fees you might encounter.
| Fee Type | Cost |
|---|---|
| Stock & ETF Trades | $0 |
| Options Trades | $0 + $0.65/contract |
| Crypto Trades (BTC, ETH, SOL) | 0.50% per trade |
| OTC Stocks | $6.95 (or $4.95 for active traders) |
| Account Minimum | $0 |
| Account Maintenance Fee | $0 |
| Inactivity Fee | $0 |
| Dividend Reinvestment (DRIP) | Free |
| Mutual Funds (NTF) | $0 |
| Mutual Funds (TF) | $9.95 |
| Broker-Assisted Trade | $25 |
| Account Transfer Out (ACAT) | $75 |
Free Morgan Stanley, Morningstar, and MarketEdge research plus a dividend-focused screener rival institutional-grade tools.
Free per-security dividend reinvestment with fractional shares—now paired with direct fractional purchases—makes compounding effortless.
5,000+ no-transaction-fee funds and zero-expense-ratio options make E*TRADE excellent for fund-based strategies.
E*TRADE from Morgan Stanley is one of the strongest homes for a serious dividend portfolio in 2026. The free per-security DRIP, top-tier research, and huge no-transaction-fee fund lineup were already compelling—and the arrival of direct fractional-share purchases removes its biggest historical weakness. The rollout is still phased (no dollar-based orders yet, not every stock eligible), and the website can be clunky to navigate, but neither undercuts the core appeal. If you want deep dividend data and effortless reinvestment backed by Morgan Stanley research, E*TRADE delivers; if you want the most polished fractional-share experience today, Fidelity still has the edge.
Compare All PlatformsSee how E*TRADE stacks up against the competition
More mature fractional shares with dollar-based orders and similar research depth.
Read Review →Comparable features with thinkorswim, strong customer service, and physical branches.
Read Review →Simpler app with instant fractional shares, but far weaker dividend research and no mutual funds.
Read Review →Yes. E*TRADE offers free dividend reinvestment (DRIP) with fractional shares, $0 stock and ETF commissions, and some of the best dividend research available—free reports from Morgan Stanley and Morningstar plus a screener that filters by yield, payout ratio, and dividend growth. In 2026 it also began offering direct fractional-share purchases, closing its main gap versus Fidelity and Schwab.
Yes. E*TRADE's Dividend Reinvestment Program is free and covers most dividend-paying U.S. stocks, ETFs, and many mutual funds. You enroll per security through account settings, and dividends are automatically reinvested on the payment date—including fractional shares when the dividend doesn't cover a full share.
Stock and ETF trades are $0, options cost $0.65 per contract, and crypto trades (bitcoin, ether, solana) cost 0.50%. There are no account minimums, maintenance fees, or inactivity fees, and DRIP is free. Watch for the $25 broker-assisted trade fee, $9.95 transaction-fee mutual funds, and a $75 outgoing account transfer fee.
Both are excellent for dividend investors. Fidelity has the more mature fractional-share program (dollar-based orders on thousands of stocks) and a slightly cleaner interface. E*TRADE counters with Morgan Stanley research, five trading platforms, and 5,000+ no-transaction-fee mutual funds. If fractional investing is your priority, pick Fidelity; if research depth matters most, pick E*TRADE. See our full E*TRADE vs Fidelity comparison.
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