Morgan Stanley buying E*TRADE

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galawdawg
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Morgan Stanley buying E*TRADE

Post by galawdawg » Thu Feb 20, 2020 7:44 am

Looks like Morgan Stanley is buying E*TRADE for $13 billion.

As a new E*TRADE customer, I'll be interested to see what, if any, changes result from this acquisition. My experiences at E*TRADE have been fantastic so far and they are one of just a couple of brokerages that charge no transaction fees on most VG mutual funds. I'll pass along information as I learn it as an E*TRADE customer.

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tvubpwcisla
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Re: Morgan Stanley buying E*TRADE

Post by tvubpwcisla » Thu Feb 20, 2020 7:54 am

Thanks for sharing! Schwab acquiring TD Ameritrade ... more consolidation in the brokerage services space to come perhaps?

ARoseByAnyOtherName
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Re: Morgan Stanley buying E*TRADE

Post by ARoseByAnyOtherName » Thu Feb 20, 2020 8:01 am

Morgan Stanley Is Buying E*Trade, Betting on Littler Customers
https://www.wsj.com/articles/morgan-sta ... 1582201440

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Re: Morgan Stanley buying E*TRADE

Post by ARoseByAnyOtherName » Thu Feb 20, 2020 8:01 am

ARoseByAnyOtherName wrote:
Thu Feb 20, 2020 8:01 am
Morgan Stanley Is Buying E*Trade, Betting on Littler Customers
https://www.wsj.com/articles/morgan-sta ... 1582201440
That is a funny headline.

outbackcountry
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Re: Morgan Stanley buying E*TRADE

Post by outbackcountry » Thu Feb 20, 2020 8:03 am

This will be interesting. Not sure what to think of it. Etrade pioneered the way online trading was done. I think from purely brokerage/trading experience ETrade was the best. Dont know what value add MS will bring to ETrade customers. Got grandfathered into from OptionsHouse which ETrade bought few years ago. May be its time for me to rethink and move out!

SlowMovingInvestor
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Re: Morgan Stanley buying E*TRADE

Post by SlowMovingInvestor » Thu Feb 20, 2020 8:04 am

What other significant online brokerage is left now ? Ally Trading ?

Fidelity may have a disadvantage in acquiring other brokerages since it's private and can't do stock acquisitions without diluting control of the Johnson family.

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Cheez-It Guy
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Re: Morgan Stanley buying E*TRADE

Post by Cheez-It Guy » Thu Feb 20, 2020 8:09 am

Vanguard should buy M1 Finance and integrate their technology.

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galawdawg
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Re: Morgan Stanley buying E*TRADE

Post by galawdawg » Thu Feb 20, 2020 8:10 am

Here is a WSJ article on the acquisition (subscription required)L https://www.wsj.com/articles/morgan-sta ... 1582201440

Highlights:

"The all-stock takeover, set to be announced Thursday, will combine a Wall Street firm in the late innings of a decadelong turnaround with a discount broker built on the backs of dot-com day traders. It is the biggest takeover by a giant U.S. bank since the 2008 crisis. E*Trade brings five million retail customers, their $360 billion in assets and an online bank with cheap deposits that Morgan Stanley can funnel into loans. Its CEO, Michael Pizzi, is coming along to run the e-brokerage business, which will keep its brand, its handful of retail storefronts and its buzzy and well-funded ad campaigns, Morgan Stanley Chief Executive James Gorman said."

"Morgan Stanley already has 15,500 human advisers catering to millionaires and last year rolled out an online-only tool for customers with less money and less-complicated financial lives. E*Trade will slot into that wealth-management arm, which will have more than eight million users and $3.1 trillion in client money once the deal closes."

"The deal price of $58.74 a share, all in Morgan Stanley stock, is 34% higher than E*Trade’s price before Schwab announced its fee cut. Morgan Stanley expects to recoup that premium through $400 million of cost cuts and additional savings of $150 million from using E*Trade’s low-cost deposits to replace more expensive funding. Mr. Gorman said he also sees an opportunity to take E*Trade international, where his firm has no wealth-management presence."

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Re: Morgan Stanley buying E*TRADE

Post by ARoseByAnyOtherName » Thu Feb 20, 2020 8:11 am

ARoseByAnyOtherName wrote:
Thu Feb 20, 2020 8:01 am
ARoseByAnyOtherName wrote:
Thu Feb 20, 2020 8:01 am
Morgan Stanley Is Buying E*Trade, Betting on Littler Customers
https://www.wsj.com/articles/morgan-sta ... 1582201440
That is a funny headline.
And they changed it! Now instead of “Littler” it says “Smaller”. Funny!

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Re: Morgan Stanley buying E*TRADE

Post by whodidntante » Thu Feb 20, 2020 8:14 am

Ha! I just initiated a transfer to e*trade for a bonus. The fee to get out of MS should be interesting.

gs2offroad
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Re: Morgan Stanley buying E*TRADE

Post by gs2offroad » Thu Feb 20, 2020 8:15 am

Just initiated ACATS from Etrade to Vanguard. Been meaning to do this for a long while and the MS acquisition pushed me over the edge. :sharebeer

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Re: Morgan Stanley buying E*TRADE

Post by ARoseByAnyOtherName » Thu Feb 20, 2020 8:15 am

whodidntante wrote:
Thu Feb 20, 2020 8:14 am
Ha! I just initiated a transfer to e*trade for a bonus. The fee to get out of MS should be interesting.
Now you’ll have 15,500 human advisers catering to you!

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Re: Morgan Stanley buying E*TRADE

Post by Ddd7651 » Thu Feb 20, 2020 8:29 am

I strangely got two calls and voicemails from Etrade yesterday from "insert generic name here" saying we haven't spoken in a while and it looked like my accounts were doing well and wanted to touch base. I wish I could have picked up the call and responded "I'm sorry I don't remember you and thank you for kudos on my account performance. I've found my source of success was ignoring cold calls and middlemen managing my account and siphoning off my extra cash."

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simplesimon
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Re: Morgan Stanley buying E*TRADE

Post by simplesimon » Thu Feb 20, 2020 8:40 am

I don't expect them to start charging fees to trade Vanguard funds.

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galawdawg
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Re: Morgan Stanley buying E*TRADE

Post by galawdawg » Thu Feb 20, 2020 8:46 am

Robert Wolf (former CEO of UBS Americas and President of UBS) opined this morning on Fox Business (Mornings with Maria) that Morgan Stanley expects this acquisition will allow them to retain more of their clients by adding the zero fees and other benefits of E*TRADE to Morgan Stanley's current offerings. That would encourage current Morgan Stanley customers who may currently be leaving for Fidelity, Schwab and E*TRADE for their zero fees on trades to stay with Morgan Stanley.

That makes sense and hopefully the acquisition will combine the best offerings of both and not have a negative impact upon current E*TRADE customers.

Puretaxableindexer
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Re: Morgan Stanley buying E*TRADE

Post by Puretaxableindexer » Thu Feb 20, 2020 8:56 am

I worked for Dean Witter then Morgan Stanley many years ago, but I didn't expect this. MS and E-Trade are like oil and water, it won't work out and I expect many asset tranfers to other institutions like Schwab or Fidelity.

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Re: Morgan Stanley buying E*TRADE

Post by BillWalters » Thu Feb 20, 2020 9:22 am

If you have a decent size account at ETrade, get ready for a barrage of sales calls and probably some new “convenience” fees.

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Re: Morgan Stanley buying E*TRADE

Post by Wanderingwheelz » Thu Feb 20, 2020 9:22 am

Puretaxableindexer wrote:
Thu Feb 20, 2020 8:56 am
I worked for Dean Witter then Morgan Stanley many years ago, but I didn't expect this. MS and E-Trade are like oil and water, it won't work out and I expect many asset tranfers to other institutions like Schwab or Fidelity.
I was an advisor at Merrill Lynch many years ago, and that’s the same thing that was said back then about full-service brokers and banks. We teased the bank brokers back then. Now they are all banks, including ML.

Now that the old-fashioned stock trade has officially been declared worthless (I charged $105 for 100 shares) the next phase of the game that’s going to come under crushing pressure is “wrap fee” accounts. You’ll see more and more talk about “breaking the point” (wrap fees dropping below 1%), and likely Vanguard even reducing its fee of 30 basis points.

The race to the bottom is in literally everything and I honestly do not see how a company like Edward Jones will be able to survive. The internet is removing the profit from everything. There has never been a better time to be a consumer than now, as long as you can control your spending- which admittedly is harder than ever to do with targeted advertising and social media creating a strong urge to buy and to keep up with family and friends.

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Re: Morgan Stanley buying E*TRADE

Post by Jack FFR1846 » Thu Feb 20, 2020 9:33 am

Edward Jones will survive because their thing is to have each office advisor stick his nose in every little league game, attend the scout meetings and be an active, visible member of the community. They are trained to poo poo any fee question and serve coffee and piano music to their victims. EJ clients don't care that they're paying through the nose so long as they can drop in and chat with their guy/gal.

On the eTrade purchase. Gulp. I also took advantage of the bonus for moving money in. I only moved in $5000 to get a couple hundred bucks and my wall calendar counts down the months until I'm free to move it out. My employer uses eTrade for ESPP and RSUs so I can't fully leave eTrade, but I can move all the money out every transaction settlement time if the Evil Sith Lord messes things up.
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Re: Morgan Stanley buying E*TRADE

Post by sailaway » Thu Feb 20, 2020 9:37 am

Jack FFR1846 wrote:
Thu Feb 20, 2020 9:33 am
Edward Jones will survive because their thing is to have each office advisor stick his nose in every little league game, attend the scout meetings and be an active, visible member of the community. They are trained to poo poo any fee question and serve coffee and piano music to their victims. EJ clients don't care that they're paying through the nose so long as they can drop in and chat with their guy/gal.

On the eTrade purchase. Gulp. I also took advantage of the bonus for moving money in. I only moved in $5000 to get a couple hundred bucks and my wall calendar counts down the months until I'm free to move it out. My employer uses eTrade for ESPP and RSUs so I can't fully leave eTrade, but I can move all the money out every transaction settlement time if the Evil Sith Lord messes things up.
I am pretty sure that if the evil sith Lord messes things up, a lot of these Megacorps would start looking elsewhere for their stock programs.

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Re: Morgan Stanley buying E*TRADE

Post by CoastalWinds » Thu Feb 20, 2020 11:33 am

Crud. I was contemplating opening an account at e-trade. I’m not going there now.

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Re: Morgan Stanley buying E*TRADE

Post by DaftInvestor » Thu Feb 20, 2020 11:41 am

I used ETrade decades ago when I used to trade stocks. When I sold all and transferred out something spun a dividend and my account has been open with exactly a $0.02 balance ever since. I just left it there in case I wanted to use any of their research tools, etc. but never do. Maybe Morgan will finally close me out and send me a check for $0.02.

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Re: Morgan Stanley buying E*TRADE

Post by ARoseByAnyOtherName » Thu Feb 20, 2020 11:53 am

SlowMovingInvestor wrote:
Thu Feb 20, 2020 8:04 am

Fidelity may have a disadvantage in acquiring other brokerages since it's private and can't do stock acquisitions without diluting control of the Johnson family.
That’s an interesting point, thought it’s not clear that Fidelity actually needs to do a large acquisition. They have a very wide breadth of services and offerings already, and their tech seems strong compared to their competitors. They’re already large, and as you say their ownership structure doesn’t incent them to do very large acquisitions or mergers.

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Re: Morgan Stanley buying E*TRADE

Post by snowman » Thu Feb 20, 2020 11:57 am

CoastalWinds wrote:
Thu Feb 20, 2020 11:33 am
Crud. I was contemplating opening an account at e-trade. I’m not going there now.
Why not? They have the best signup bonus offer as of today. I've been contemplating going there when my current holding period expires. I hope the door doesn't close too quickly and I can still squeeze in. The bonus land is sure drying out pretty quick...

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Re: Morgan Stanley buying E*TRADE

Post by magicrat » Thu Feb 20, 2020 11:59 am

I've had an eTrade checking account for 15 years. They charge no ATM fees and refund all fees from ATMs where I get cash. I'll be sad to see that go!

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Re: Morgan Stanley buying E*TRADE

Post by ARoseByAnyOtherName » Thu Feb 20, 2020 12:01 pm

magicrat wrote:
Thu Feb 20, 2020 11:59 am
I've had an eTrade checking account for 15 years. They charge no ATM fees and refund all fees from ATMs where I get cash. I'll be sad to see that go!
Well how do you know it’ll go? It might not.

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Re: Morgan Stanley buying E*TRADE

Post by magicrat » Thu Feb 20, 2020 12:04 pm

ARoseByAnyOtherName wrote:
Thu Feb 20, 2020 12:01 pm
magicrat wrote:
Thu Feb 20, 2020 11:59 am
I've had an eTrade checking account for 15 years. They charge no ATM fees and refund all fees from ATMs where I get cash. I'll be sad to see that go!
Well how do you know it’ll go? It might not.
I don't. But I've been involved in enough mergers to know where the consultants are going to go hunting for savings.

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Re: Morgan Stanley buying E*TRADE

Post by ARoseByAnyOtherName » Thu Feb 20, 2020 12:08 pm

magicrat wrote:
Thu Feb 20, 2020 12:04 pm
ARoseByAnyOtherName wrote:
Thu Feb 20, 2020 12:01 pm
magicrat wrote:
Thu Feb 20, 2020 11:59 am
I've had an eTrade checking account for 15 years. They charge no ATM fees and refund all fees from ATMs where I get cash. I'll be sad to see that go!
Well how do you know it’ll go? It might not.
I don't. But I've been involved in enough mergers to know where the consultants are going to go hunting for savings.
I bet the signup bonuses are probably first on the chipping block...

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Re: Morgan Stanley buying E*TRADE

Post by CoastalWinds » Thu Feb 20, 2020 12:21 pm

snowman wrote:
Thu Feb 20, 2020 11:57 am
CoastalWinds wrote:
Thu Feb 20, 2020 11:33 am
Crud. I was contemplating opening an account at e-trade. I’m not going there now.
Why not? They have the best signup bonus offer as of today. I've been contemplating going there when my current holding period expires. I hope the door doesn't close too quickly and I can still squeeze in. The bonus land is sure drying out pretty quick...
Because fees are a-coming, including trying to get out.

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Re: Morgan Stanley buying E*TRADE

Post by mortfree » Thu Feb 20, 2020 12:41 pm

Here’s hoping Morgan Stanley brings the ETrade platform in and leaves it as is.

Unfortunately I just went through the whole CapitalOne to ETrade for what feels like 2 years ago.

Maybe ETrade will offer a free pass to go elsewhere before it goes to MS. That option was available for the CapOne to ETrade.

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Harry Livermore
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Re: Morgan Stanley buying E*TRADE

Post by Harry Livermore » Thu Feb 20, 2020 12:41 pm

As a long-time Etrade customer, I'll be curious to see what happens. I have a very small account there (most of our $$$ is in traditional, old school mutual funds held directly at Vanguard, old school MF platform) so any changes as a result of this merger will be relatively low-impact.
To my fellow Bogelheads predicting fees, sales calls, and other annoyances, what brokerage firm do YOU use, and why are you convinced that firm is not also likely to start charging fees etc. as a result of the consolidation we are seeing here? I know Fido and Schwab seem fairly beloved here.
I'm genuinely curious.
Cheers

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Re: Morgan Stanley buying E*TRADE

Post by rich126 » Thu Feb 20, 2020 12:46 pm

recoup that premium through $400 million of cost cuts
Probably not good for the folks who will be losing jobs. I can't imagine that not happening.

I think I had an Etrade account a long time ago. The only thing I remembered was that after i closed it out, some interest was deposited into the account. Literally well under $1 and for years afterwards I would get quarterly letters from them showing my tiny balance. I would have thought they would have simply sent me a check for it. It wasn't worth my time to call and ask for a check so I just let it go on and on. Can't recall what finally happened. Maybe they lost my address after a few moves or they finally sent me a check.

Sometimes companies do wasting things like sending you multi-page account summaries for a credit card when the balance is zero. I've been trying to go online only for most stuff to avoid using my shredder so much.

Without knowing more, my first thought is I don't think I'd be happy if I was an E Trade customer.

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Re: Morgan Stanley buying E*TRADE

Post by galawdawg » Thu Feb 20, 2020 1:14 pm

CoastalWinds wrote:
Thu Feb 20, 2020 12:21 pm
snowman wrote:
Thu Feb 20, 2020 11:57 am
CoastalWinds wrote:
Thu Feb 20, 2020 11:33 am
Crud. I was contemplating opening an account at e-trade. I’m not going there now.
Why not? They have the best signup bonus offer as of today. I've been contemplating going there when my current holding period expires. I hope the door doesn't close too quickly and I can still squeeze in. The bonus land is sure drying out pretty quick...
Because fees are a-coming, including trying to get out.
I'm not sure what the point of that would be for Morgan Stanley. I would think that would only result in the loss of the E*TRADE customer base and their AUM to Fidelity, Schwab, Vanguard, Chase YouInvest or other low cost brokerages. Unless you just want the infrastructure, why buy a company and immediately drive all of its business away?

But if Morgan Stanley does add or increase fees after the deal closes towards the end of the year, they'll still need to provide advance notice of the changes. That will allow customers to transfer out to other providers prior to any new fee structure taking effect. And the generous E*TRADE bonus offers will more than make up for the modest $75 full transfer out fee (which some competitors may even reimburse).

SlowMovingInvestor
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Re: Morgan Stanley buying E*TRADE

Post by SlowMovingInvestor » Fri Feb 21, 2020 10:44 am

magicrat wrote:
Thu Feb 20, 2020 12:04 pm
ARoseByAnyOtherName wrote:
Thu Feb 20, 2020 12:01 pm
magicrat wrote:
Thu Feb 20, 2020 11:59 am
I've had an eTrade checking account for 15 years. They charge no ATM fees and refund all fees from ATMs where I get cash. I'll be sad to see that go!
Well how do you know it’ll go? It might not.
I don't. But I've been involved in enough mergers to know where the consultants are going to go hunting for savings.
https://www.marketwatch.com/story/billi ... 2020-02-20

Peterffy, a digital-trading pioneer who founded the online platform in 1978, told MarketWatch in a phone interview on Thursday that Interactive Brokers had been in talks with E-Trade before E-Trade agreed to a deal with Morgan Stanley

“It didn’t work for us because they kept their customer money in long-term government bonds and so that’s something we as owners cannot afford to do,” Peterffy said, referring to uninvested cash sitting in customer accounts.

The billionaire founder said that Interactive puts customer money into short-term securities like Treasury bills rather than longer-term securities.


and this

https://www.cnbc.com/2020/02/20/heres-w ... trade.html

But perhaps most importantly, Morgan Stanley will gain access to E-Trade’s $56 billion in deposits. In the past, the bank has struggled to raise deposits to fund loans to its wealthy clientele, relying on high-interest CD promotions.

That will lower its funding costs by about $150 million, on top of the $400 million in other savings Morgan Stanley says the deal will bring.


I wonder if Etrade will stop offering Vanguard MMs (those are purchased funds, not sweep). And Etrade's CMA is much better than MS's CMA.

I'm guessing they'll also do some office consolidation for savings.
Last edited by SlowMovingInvestor on Fri Feb 21, 2020 11:13 am, edited 1 time in total.

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Re: Morgan Stanley buying E*TRADE

Post by GrowthSeeker » Fri Feb 21, 2020 11:01 am

I just heard about Etrade's bonus (0.25% to 0.5% depending on the amount) a few days ago; and just learned today about MS buying Etrade. I wonder if they are now doing this bonus to get a temporary influx to offset the expected out-flux as people jump ship from ET due to this acquisition???

I've had an Etrade account a very long time, it has half my taxable holdings, the rest VG. My IRA holdings are half Fido and half VG.

My first thought was also:
just transfer everything in ET to VG (or Fido), and say goodbye. But I'm not sure why. Fees? I guess. They already charge a fee to close an account, at least I got charged one when I moved a few small ET accounts to VG a few years ago.

ET has solo 401k which allows rolling in IRA pretax funds to prep for backdoor Roth, for those who need that function. Hard to imagine they would change that.

So, actionable - reasons to leave ET:
1. possible future fees.
2. future annoying phone calls trying to upsell to their asset mgt products.
3. ... what other reasons?
Just because you're paranoid doesn't mean they're NOT out to get you.

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Re: Morgan Stanley buying E*TRADE

Post by Jack FFR1846 » Fri Feb 21, 2020 11:11 am

As a practical matter, I'll discuss what I've done.

Background: my company uses eTrade for RSUs and ESPP. Besides the $18 selling fee, and clunky to find anything website, it's worked fine. I especially like that I can lineup limit sells before opening.

I opened a small, $5000 account a couple months ago with eTrade to get a $200 bonus after 6 months. my RSU sale settled this morning, so I used this opportunity to get that dangling $5 in my brokerage (I buy ETFs) used. I put in a buy order for 1 ETF share. It executed and I took the remaining RSU money and transferred it to my checking account. If I decide to invest it anywhere, it'll go to Schwab, where I find the site works the best and easiest for me. This summer, when my 6 months hits with that new account, I'll decide what I want to do. If MS screws things up, I have no problem selling all, paying my taxes and buying SCHB at Schwab.
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Re: Morgan Stanley buying E*TRADE

Post by Turbo29 » Mon Feb 24, 2020 12:16 pm

Interestingly, it was Fidelity and Vanguard that people reported difficulty logging into this morning due to the market turmoil. E*trade worked flawlessly.

I am going to wait and see what Morgan Stanley does. If it does not affect me, I'll stay. If it affects me adversly, I will leave.
It is by the goodness of God that in our country we have those three unspeakably precious things: freedom of speech, freedom of conscience, and the prudence never to practice either of them. --M. Twain

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Harry Livermore
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Re: Morgan Stanley buying E*TRADE

Post by Harry Livermore » Tue Feb 25, 2020 3:26 pm

Turbo29 wrote:
Mon Feb 24, 2020 12:16 pm
Interestingly, it was Fidelity and Vanguard that people reported difficulty logging into this morning due to the market turmoil. E*trade worked flawlessly.

I am going to wait and see what Morgan Stanley does. If it does not affect me, I'll stay. If it affects me adversly, I will leave.
Good answer, Turbo. I'm planning on the same.
Cheers

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Re: Morgan Stanley buying E*TRADE

Post by Koale3 » Sun Jul 26, 2020 8:59 pm

I would like to ask, is it smart or stupid to start E*Trade account right now? I can see that most people are negatively oriented towards acquisition but is it based on actual historic data or just prejudice? Not that I would be defending Morgan Stanley here, merely asking. Were there any examples of past wrongdoing by either Morgan Stanley or any other bigger company taking smaller one(brokerage in this case)? If I understand correctly, it's very possible that MS might try to peddle their investment funds to E*Trade customers. Similarly, nobody knows how acquisition will affect fees but one can expect that if MS wants to stay competitive with other zero-fee brokers it will have to keep them low. Morgan Stanley has released some paper on 02-20-2020 which is listing seven main goals of the acquisition, obviously it looks more like an advertisement than actual goals of company but as for now it's pretty much everything that has been officially said. The link to the paper is here: https://www.morganstanley.com/about-us- ... .20.20.pdf

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Re: Morgan Stanley buying E*TRADE

Post by BuddyJet » Sun Jul 26, 2020 9:29 pm

Koale3 wrote:
Sun Jul 26, 2020 8:59 pm
I would like to ask, is it smart or stupid to start E*Trade account right now? I can see that most people are negatively oriented towards acquisition but is it based on actual historic data or just prejudice? ............
While the acquisition adds uncertainty, if moving the account makes sense, go ahead. Just be sure not to get into something that can’t be easily transferred to another firm if the acquisition integration goes badly.

I moved some holding to E*TRADE for a new account bonus but can easily leave after the bonus vests if things aren’t good.
People say nothing is impossible. I do nothing all day.

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Re: Morgan Stanley buying E*TRADE

Post by whodidntante » Sun Jul 26, 2020 9:58 pm

I like E*Trade. I've used it to trade ETFs, futures, and options, and borrowing shares to sell short, all flawless. One nice thing is they do not charge an option assignment fee. The web interface is clean and easy to understand.

I really doubt Morgan Stanley bought E*Trade just to hose the customer base. They may do so out of incompetence, but my guess is they'll get it right. They know, or should know, the old E*Trade customer base will leave in droves if the MS customer fleecing model is applied.

If I get a great bonus offer, I'll leave E*Trade. If not, I'll stick around. I've done the best bonuses already with just about every broker, and the current offers I'm eligible for are meh. There is some chance I'll move out of the country in a few years, and in that case, it's all going to IB anyway.

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Re: Morgan Stanley buying E*TRADE

Post by jason2459 » Sun Jul 26, 2020 10:33 pm

The acquisition doesn't bother me at all. After all I'm at E-Trade due to multiple split offs and acquisitions. Was with Wells Fargo. The Sharebuilder program I was in split off on its own. Capitol One bought them. Then sold the Sharebuilder program they bought and customer base to E-Trade. E-Trade then dissolved the Sharebuilder program. I've been happy for the most part with E-Trade as a brokerage offering many funds with no transaction fees.

I did miss the original Sharebuilder program I was in but M1 finance has filled that gap again and then some. I'm still sticking with E-Trade too though.

Bama12
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Re: Morgan Stanley buying E*TRADE

Post by Bama12 » Sun Jul 26, 2020 11:44 pm

Cheez-It Guy wrote:
Thu Feb 20, 2020 8:09 am
Vanguard should buy M1 Finance and integrate their technology.
Yes

CycloRista
Posts: 135
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Re: Morgan Stanley buying E*TRADE

Post by CycloRista » Mon Jul 27, 2020 9:35 am

I started with E*Trade at the dawn of individual online investing back in the '80's and stayed with them until ~10 or so years ago when they started getting shifty with fees. Moved on to Zecco... through shrewd business dealings and acquisition (tongue-in-cheek) they are now part of Ally.

I know my way around Ally's app/web user interfaces quite well at this point and will continue with them until something better comes along.

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cos
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Re: Morgan Stanley buying E*TRADE

Post by cos » Mon Jul 27, 2020 9:41 am

Bama12 wrote:
Sun Jul 26, 2020 11:44 pm
Cheez-It Guy wrote:
Thu Feb 20, 2020 8:09 am
Vanguard should buy M1 Finance and integrate their technology.
Yes
Truly, this would be a dream come true.

Koale3
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Joined: Sat Jul 25, 2020 4:26 am
Location: EU

Re: Morgan Stanley buying E*TRADE

Post by Koale3 » Sat Aug 01, 2020 5:28 am

So I have found plenty of negative reviews of E*Trade on https://www.consumeraffairs.com/finance/etrade.html
I'd like to know is "consumeraffairs" legitimate source? Most brokers reviewed there get 1-1.5 rating, are they just biased or trying to "bomb" company? Moreover I know that Vanguard there was also in 1-1.5 bracket for long time but lately they pumped it.

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galawdawg
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Location: Georgia

Re: Morgan Stanley buying E*TRADE

Post by galawdawg » Sat Aug 01, 2020 6:08 am

In J.D. Power's 2019 US Self-Directed Brokerage Study, here were the customer satisfaction rankings:

For DIY investors:
1. Schwab
2. Vanguard
3. Merrill Edge
4 E*TRADE
5. Fidelity
6. T. Rowe Price
7. TD Ameritrade
8. Chase
9. Wells Trade

For investors seeking guidance:
1. Fidelity
2. Vanguard
3. Schwab
4. TD Ameritrade
5. E*TRADE
6. Chase
7. Wells Fargo
8. Merrill Edge
9. TIAA

I've only been at E*TRADE since October but have been well-pleased. So far, the only potential change I have seen is a reduction in their banking product interest rates which are no longer competitive with Ally and Marcus. I don't know if that has anything to do with the Morgan Stanley acquisition or if it is unrelated. I'll be watching carefully to see what changes come down the road as a result of this acquisition.

jason2459
Posts: 321
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Re: Morgan Stanley buying E*TRADE

Post by jason2459 » Sat Aug 01, 2020 8:40 am

I've called into E-Trade a few times. Each time was good. I actually asked them on one call why their rates dropped so much and why they weren't even trying to be competitive anymore. I have a "premium" account that wasn't super high yield but at least was higher then your typical bank.

The way their savings accounts work is they are a sweep across multiple partner banks which allows them to offer much higher then 250k in FDIC insurance on your one banking account with them. $1.25m for single or $2.5 for joint.

It was either drop the sweep program and force everyone above $250k to lose their insurance or drop their interest rates due to most all partner banks dropping theirs.

So, E-Trade is at the mercy of partner banks on interest rates. Not just Morgan Stanley.

List of partner banks.
https://us.etrade.com/e/t/estation/cont ... 00&em=5514

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beyou
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Location: Northeastern US

Re: Morgan Stanley buying E*TRADE

Post by beyou » Sat Aug 01, 2020 8:53 am

Using partner banks to get > FDIC insurance while not common is done elsewhere. Great idea and worth it so you can make your cash sweep you better than fdic insured bank acct. Etrade has great bank like cash management, in this way better than most banks.

I use Etrade but more as a bank and limited as my broker due to a variety of reasons. But if one stop shopping is your primary goal, banking and investing in one place with great customer service, this is a great choice. I can’t compare to Fido which many suggest for one stop but I can say Etrade is among the best for one-stop. Personally I don’t think one stop is all that important, but if you do Etrade is great.

That said, I wonder what will change as MS takes over.

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beyou
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Location: Northeastern US

Re: Morgan Stanley buying E*TRADE

Post by beyou » Sat Aug 01, 2020 9:04 am

To me this is simple.
This is Morgan Stanley’s answer to Merrill Edge.
It’s a way to service smaller clients with better tech and retail services. Buy vs build. For Etrade customers, you could get access to some MS services. Note Etrade, does have some gaps vs Fido, and others. Maybe we’ll see MS Etrade ETFs managed by MSIM (Morgan Stanley Investment Management). Maybe online access to MS bond inventory for you DIY that buy bonds not bond funds.

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