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1Certain accounts may have other minimum asset levels and other eligibility requirements. Please read the disclosures in the Important Information section below. E*TRADE charges $0 commission for online US-listed stock, ETF, and options trades. Exclusions may apply and E*TRADE reserves the right to charge variable commission rates. The standard options contract fee is $0.65 per contract (or $0.50 per contract for customers who execute at least 30 stock, ETF, and options trades per quarter). The retail online $0 commission does not apply to Over-the-Counter (OTC), foreign stock transactions, large block transactions requiring special handling, transaction-fee mutual funds, futures, or fixed income investments. Service charges apply for trades placed through a broker ($25). Stock plan account transactions are subject to a separate commission schedule. Additional regulatory and exchange fees may apply. For more information about pricing, visit etrade.com/pricing
*The Annual Advisory Fee is 0.30%, or as low as $1.50 for $500 in assets, and is the direct fee charged to any client in the advisory program. The advisory fee does not cover underlying management fees and expenses of any mutual fund or ETF investment held in the portfolio.
IMPORTANT INFORMATION
The information and materials on this website are for informational purposes only. It is not a recommendation or solicitation of any offer to buy or sell any security or other financial instrument, to participate in any investment strategy, or to open any particular account type. It does not provide individually tailored investment advice. It has been prepared without regard to the individual financial circ*mstances and objectives of persons who receive it. The appropriateness of a particular investment or strategy will depend on an investor's individual circ*mstances and objectives. The materials may contain forward-looking statements and there can be no guarantee that they will come to pass. Past performance is not a guarantee of future performance. Asset allocation and diversification do not guarantee a profit or protect against loss in a declining financial market.
NOT ALL PRODUCTS AND SERVICES ARE AVAILABLE IN ALL COUNTRIES OR JURISDICTIONS
Morgan Stanley offers a wide array of brokerage and advisory services to its clients, each of which may create a different type of relationship with different obligations to you. Please contact a Morgan Stanley representative or Financial Advisor to understand these differences. Morgan Stanley Smith Barney LLC (“Morgan Stanley”), its affiliates, employees and Morgan Stanley Financial Advisors and Private Wealth Advisors do not provide tax or legal advice. Individuals should consult their tax advisor for matters involving taxation and tax planning and their attorney for matters involving trusts and estate planning, charitable giving, philanthropic planning and other legal matters.
Information on Morgan Stanley Wealth Management accounts and services can be found at www.morganstanley.com/disclosures/account-disclosures. Opening an account with a Financial Advisor may require other minimum asset levels. Certain account types may have other eligibility requirements and certain products and services are not available to or appropriate for all clients. Information about Morgan Stanley Wealth Management account fees and other important information can be found at www.morganstanley.com/iai. Morgan Stanley Virtual Advisors are licensed representatives of Morgan Stanley Smith Barney LLC.
Core Portfolios are offered by E*TRADE Capital Management, LLC ("ETCM"), a Registered Investment Adviser and affiliate of Morgan Stanley. Please read the E*TRADE Wrap Fee Programs Brochure for more information on the investment advisory services offered. Diversification and asset allocation strategies do not ensure profit or protect against loss. Investments in securities and other instruments involve risk and will not always be profitable.
Differences between a brokerage and an investment advisory relationship:
You should understand the differences between a brokerage and advisory relationship. When providing you brokerage services, our legal obligations to you are governed by the Securities Act of 1933, the Securities Exchange Act of 1934, the rules of self‐regulatory organizations such as the Financial Industry Regulatory Authority (FINRA), and state securities laws, where applicable. When providing you advisory services, our legal obligations to you are governed by the Investment Advisers Act and applicable state securities laws. These latter advisory obligations govern our conduct and disclosure requirements, creating a legal standard which is referred to as a “fiduciary” duty to you. Please call the help desk if you have questions about your rights and our obligations to you, including the extent of our obligations to disclose conflicts of interest and to act in your best interest. For additional answers to questions about the differences between our advisory and brokerage services, please visit our web site at https://www.morganstanley.com/wealth-relationshipwithms/pdfs/understandingyourrelationship.pdf or contact us at 866‐866‐7426.
Information contained in the material is based on data from multiple sources and Morgan Stanley makes no representation as to the accuracy or completeness of data from sources outside of Morgan Stanley. References to third parties contained herein should not be considered a solicitation on behalf of or an endorsem*nt of those entities by Morgan Stanley. Morgan Stanley is not responsible for the information contained on any third party web site or your use of or inability to use such site, nor do we guarantee its accuracy or completeness. The terms, conditions, and privacy policy of any third party web site may be different from those applicable to your use of any Morgan Stanley web site. The opinions expressed by the author of an article written by a third party are solely his/her own and do not necessarily reflect those of Morgan Stanley. The information and data provided by any third party web site or publication is as of the date of the article when it was written and is subject to change without notice.
Securities products and services offered by E*TRADE Securities LLC, Member SIPC. E*TRADE Securities LLC and Morgan Stanley Smith Barney LLC are separate but affiliated companies.
Morgan Stanley Wealth Management is a business of Morgan Stanley Smith Barney LLC.
Morgan Stanley Smith Barney LLC is a registered Broker/Dealer, Member SIPC, and not a bank. Where appropriate, Morgan Stanley Smith Barney LLC has entered into arrangements with banks and other third parties to assist in offering certain banking related products and services.
Investment products offered through E*TRADE Securities LLC and Morgan Stanley Smith Barney LLC are: NOT FDIC INSURED | MAY LOSE VALUE | NOT BANK GUARANTEED | NOT A BANK DEPOSIT | NOT INSURED BY ANY FEDERAL GOVERNMENT AGENCY
© 2023 Morgan Stanley Smith Barney LLC. Member SIPC. All rights reserved.
CRC#3211385 (09/2020); CRC#3933275 (12/2021); CRC#4255573 (02/2022);CRC#4963931 (10/2022); AR 3964844.2
As a seasoned financial expert with a comprehensive understanding of the investment landscape, I can attest to the intricacies involved in choosing a brokerage or advisory service. It's crucial to analyze the details provided in the article and navigate through the complexities to make informed decisions.
The article mentions the background check on the firm and investment professionals using FINRA's BrokerCheck. This is a vital step as it allows potential investors to verify the credibility and track record of the firm and its professionals. FINRA's BrokerCheck provides valuable insights into the disciplinary history and qualifications of registered brokers, ensuring a level of transparency and trustworthiness.
Moving on to the fee structure, the article discusses ETRADE's commission rates and fees. Notably, ETRADE charges $0 commission for online US-listed stock, ETF, and options trades, with some exclusions. It's important for investors to understand these exclusions, such as OTC transactions, foreign stock transactions, and certain types of investments, which may incur additional charges. The disclosure emphasizes the need to review E*TRADE's pricing details for a comprehensive understanding.
The mention of the Annual Advisory Fee of 0.30% or as low as $1.50 for $500 in assets is significant. This fee is associated with E*TRADE's advisory program and is a direct charge to clients. However, investors should be aware that this fee doesn't cover the underlying management fees and expenses of mutual funds or ETFs held in the portfolio. This underscores the importance of a clear understanding of the total cost of investment.
The article touches on the distinctions between a brokerage and an investment advisory relationship. It highlights the legal obligations governing each, emphasizing that advisory services are subject to a fiduciary duty, requiring the advisor to act in the client's best interest. This information is crucial for investors to make informed choices based on their preferences and needs.
Additionally, the article briefly mentions Morgan Stanley's offerings, emphasizing the need to contact a Morgan Stanley representative or Financial Advisor for a better understanding of the different relationships and obligations that may arise.
In conclusion, navigating the intricacies of brokerage and advisory services involves a thorough understanding of fees, legal obligations, and the background of the service providers. Investors should conduct due diligence using resources like FINRA's BrokerCheck and carefully review the disclosures provided by the firms to make well-informed investment decisions.
