Broker Comparison
E*TRADE (Morgan Stanley) vs Fidelity Investments — 2026 Comparison
Our Verdict
Fidelity is the better overall choice for most investors with its zero-expense-ratio index funds, superior research tools, and broader service offerings. E*TRADE, backed by Morgan Stanley, offers strong options trading tools and a well-designed platform. For long-term investing and retirement planning, Fidelity has the edge; for options-focused active traders, E*TRADE's Power E*TRADE platform is compelling.
Fidelity Investments has the higher overall score at 9.1/10
Head-to-Head Scores
| Category | | |
|---|---|---|
| Regulation | 9.5 | 9.8 |
| Trustworthiness | 8.0 | 8.7 |
| Fees | 8.0 | 9.5 |
| Transparency | 8.5 | 9.0 |
| Customer Support | 8.5 | 8.5 |
| Overall Score | 8.5/10 | 9.1/10 |
Key Differences
Fund Costs
Fidelity offers zero-expense-ratio index funds (FZROX, FZILX, etc.) that literally cost nothing to hold. E*TRADE does not offer proprietary zero-fee funds and instead provides access to third-party funds at standard expense ratios.
Options Trading Platform
E*TRADE's Power E*TRADE platform is purpose-built for options with an intuitive interface, strategy scanners, and risk/reward visualizations. Fidelity's Active Trader Pro handles options well but is not as focused on the options experience.
Parent Company Resources
E*TRADE is owned by Morgan Stanley, giving it access to institutional research and banking services. Fidelity is the largest privately held financial services company in the US with $12+ trillion in assets under administration.
Retirement & Planning Tools
Fidelity excels in retirement planning with its Planning & Guidance Center, workplace retirement plan administration, and HSA accounts. E*TRADE offers solid retirement tools but cannot match Fidelity's depth in this area.
Detailed Comparison
E*TRADE (Morgan Stanley) Strengths
Overall
Broker · United States
SEC / FINRA / OCC Regulated (Morgan Stanley subsidiary)
- Top-tier regulatory oversight
- Competitive fee structure
- Responsive customer support
- Good transparency standards
Fidelity Investments Strengths
Overall
Broker · United States
SEC / FINRA Regulated
- Top-tier regulatory oversight
- Industry-leading low fees
- Responsive customer support
- Excellent transparency
Score Breakdown
Who Should Choose Which?
Choose E*TRADE (Morgan Stanley)
8.5/10 overall score
Options and active traders who appreciate Power E*TRADE's intuitive interface, strong options analytics, and the backing of Morgan Stanley's research network. E*TRADE also suits investors who want a premium feel with managed portfolio options.
Read full E*TRADE (Morgan Stanley) review →Choose Fidelity Investments
9.1/10 overall score
Long-term investors, retirement savers, and cost-conscious traders who want the industry's best index fund pricing, exceptional research, and a platform that excels across every category. Fidelity is the best all-around brokerage for the majority of US investors.
Read full Fidelity Investments review →Read the Full Reviews
E*TRADE (Morgan Stanley) Review 2026
E*TRADE, now owned by Morgan Stanley, is one of the pioneering online brokerages in the US. With zero-commission trading, the Power E*TRADE platform for active traders, and the backing of one of the world's largest investment banks, E*TRADE offers a premium trading experience for all levels of investors.
Fidelity Investments Review 2026
Fidelity Investments is a privately held financial powerhouse managing over $12 trillion in assets. With zero-commission trading, fractional shares, zero-expense-ratio index funds, and exceptional research, Fidelity is one of the best all-around brokerages for investors of all experience levels.
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Frequently Asked Questions
Is E*TRADE (Morgan Stanley) better than Fidelity Investments?
E*TRADE (Morgan Stanley) scores 8.5/10 while Fidelity Investments scores 9.1/10 in our analysis. Fidelity Investments has the higher overall score, but the best choice depends on your specific needs. Fidelity is the better overall choice for most investors with its zero-expense-ratio index funds, superior research tools, and broader service offerings. E*TRADE, backed by Morgan Stanley, offers strong options trading tools and a well-designed platform. For long-term investing and retirement planning, Fidelity has the edge; for options-focused active traders, E*TRADE's Power E*TRADE platform is compelling.
Which has lower fees, E*TRADE (Morgan Stanley) or Fidelity Investments?
E*TRADE (Morgan Stanley) scores 8/10 for fees while Fidelity Investments scores 9.5/10. Fidelity Investments offers better value on fees. However, fee structures vary by instrument and trading volume, so we recommend comparing the specific costs for your intended use case.
Which is safer, E*TRADE (Morgan Stanley) or Fidelity Investments?
Both are considered safe and recommended. E*TRADE (Morgan Stanley) scores 9.5/10 for regulation and 8/10 for trustworthiness. Fidelity Investments scores 9.8/10 for regulation and 8.7/10 for trustworthiness. SEC / FINRA / OCC Regulated (Morgan Stanley subsidiary) and SEC / FINRA Regulated provide meaningful investor protections.
Can I use both E*TRADE (Morgan Stanley) and Fidelity Investments?
Yes, many investors maintain accounts at multiple brokerages to take advantage of each platform's strengths. E*TRADE (Morgan Stanley) is best for options and active traders who appreciate power e*trade's intuitive interface, strong options analytics, and the backing of morgan stanley's research network. Fidelity Investments is best for long-term investors, retirement savers, and cost-conscious traders who want the industry's best index fund pricing, exceptional research, and a platform that excels across every category. Using both can give you a well-rounded trading and investing setup.
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