“I can’t imagine two places that are less alike,” MadMoneyOnCNBC's JimCramer says about Morgan Stanley and E-Trade. “Robinhood’s making everybody do things that I never thought would happen.”
. At the time of that deal, analysts speculated E-Trade may be next to find a partner as the discount brokerage industry faces increasing margin pressures from zero commission trading. After Schwab became the first major player to drop online commission fees last October, competitors were forced to follow with Fidelity and E-trade making similar announcements shortly thereafter.
"They both have leading corporate stock plan businesses and a big part of Morgan Stanley's growth initiative for the year in wealth management is converting those customers to Morgan Stanley wealth management customers. E-Trade has nearly 2 million corporate stock plan customers and so this strategically widens the potential opportunity for Morgan Stanley to convert those customers," said Ryan.
"We suspect that as a non eBroker acquirer, MS may not be able to remove costs such as marketing and certain platform costs that an in-industry player could be capable of," Piper Sandler analyst Richard Repetto said in a note to clients.
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