How do Schwab and Morgan Stanley compare as brokerage accounts?
Schwab has a lower fee for trades, while Morgan Stanleys higher price comes with handholding and research. Both provide hand holding ( they will help you alongl but neither company will provide you with research. Morgan Stanley has a lower fee for tades, while Schwab's higher price comes with handholding and research.
Today, Morgan Stanley trades at 14.7 times earnings compared to Schwab's valuation of 16.1 times earnings. A more pronounced difference is seen between the companies' book values. Schwab is valued at 3.6 times its book value, while Morgan Stanley trades at around 1.5 times its book value.
Answer. Final answer: Schwab offers a lower fee for trades along with research and support, while Morgan Stanley charges higher fees, justified by personalized service and in-depth research.
We're a member of SIPC.
We're a member of the Securities Investor Protection Corporation (SIPC), which protects securities customers of its members with coverage of up to US$500,000 (including US$250,000 for claims for cash). To learn more, ask us for an explanatory brochure or visit SIPC's website.
When opening a brokerage account, investors have two main options: a cash account or a margin account. The difference between them is how and when you pay for your investments. As the name suggests, when you buy securities with a cash account, you must do so using cash, paying for the purchase in full.
Brokerage rates generally range from nil to 2.2% of the value of the transaction and may vary depending on the type and level of service, the type of financial product to which the transaction relates, the size and frequency of your trades, and what you agree with your financial adviser.
In fact, 97% of our clients say they are satisfied with the firm, and 98% are satisfied with how their Morgan Stanley Financial Advisor handles questions and requests.
They are often referred to as the "big four brokerages." Each of these firms—Charles Schwab, Fidelity Investments, and E*TRADE,—comprise the top in terms of customers and assets.
Morgan Stanley has world-class technology and tools Morgan Stanley employs over 15,000 technologists worldwide and continues to invest in new ideas. They are on the cutting edge of AI and machine learning, data analytics and mobile technologies.
| Stock Brokerage Firm | Assets under management* |
|---|---|
| Vanguard Group | $8.6 trillion |
| Charles Schwab | $8.5 trillion |
| Fidelity Investments | $4.4 trillion |
| JPMorgan Chase & Co. | $3.9 trillion |
Is Charles Schwab financially stable?
The Rating Outlook is Stable. Fitch has also affirmed Charles Schwab Bank, SSB's (CSB) Long-Term and Short-Term IDRs at 'A+'/'F1' and its VR at 'a' and subsequently withdrawn all of its ratings for commercial reasons.
They must also have a certain amount of liquidity on hand, thus allowing them to cover funds in these cases. What this means is that even if you have more than $500,000 in one brokerage account, chances are high that you won't lose any of your money even if the broker is forced into liquidation.
Online listed stock and ETF trades at Schwab are commission-free. Online options trades are $0.65 per contract. Service charges apply for automated phone trades ($5) and broker-assisted trades ($25) for stocks, ETFs, and Options. Futures trades are $2.25 per contract8 for both online and broker-assisted trades.
If the value of your investments drops too far, you might struggle to repay the money you owe the brokerage. Should your account be sent to collections, it could damage your credit score. You can avoid this risk by opening a cash account, which doesn't involve borrowing money.
- Best Overall: Fidelity.
- Best for Low Costs: Fidelity.
- Best for Beginners: Charles Schwab.
- Best for Advanced Traders: Interactive Brokers.
- Best for ETFs: Fidelity.
- Best for Options Trading: tastytrade.
- Best for International Trading: Interactive Brokers.
In case the records of the failed brokerage firm are found to be accurate, provision is made to transfer the customer accounts to another brokerage firm by SIPC and the trustee.
At Morgan Stanley, or any big firm, 1% is a fairly common fee---and a fair one, in many cases--provided it covers all transaction costs and is the Advisors' sole compensation on the account [meaning that the client's interest should be the Advisor's only interest.]
The Morgan Stanley Access Direct account is a self-directed online brokerage account for U.S. residents where trading and other account activities are undertaken at the client's sole discretion without access to a Financial Advisor.
For more than 25 years, Morgan Stanley has led the industry and set the standard for excellence in prime brokerage.
The largest brokerage firms are household names: Vanguard, Charles Schwab, Fidelity, Bank of America (specifically Merrill Lynch), and J.P. Morgan each manage trillions of assets and millions of accounts. Vanguard alone has $8.2 trillion assets under management (AUM) as of July 31, 2023.
How safe is my money with Morgan Stanley?
Morgan Stanley is a member of SIPC. SIPC protects client net claims up to $500,000, of which up to $250,000 may be uninvested cash. Note that SIPC coverage does not protect investors against securities fraud, as it only protects client assets in the event of brokerdealer insolvency.
- Charles Schwab - Best for high net worth investors.
- Merrill Edge - Best rewards program.
- Fidelity - Best overall online broker.
- Interactive Brokers - Great overall, best for professionals.
- E*TRADE - Best web-based platform.
Fidelity has the top overall score in 2024, with an excellent app, clear navigation, and low fees. When it comes to fees, Fidelity skips many charges that are common among other brokers.
The average account balance across all participant accounts finished at $273,412 for Q3, the Charles Schwab SDBA Indicators Q3 2022 Report found. That is lower than the $283,485 average value at the end of Q2 2022 and far lower than the average balance of $341,068 for 2021.
Morgan Stanley main competitors are Credit Suisse, Goldman Sachs, and Deutsche Bank. Competitor Summary. See how Morgan Stanley compares to its main competitors: JPMorgan Chase & Co. has the most employees (255,351).
