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Morgan Stanley Reviews (2025)
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Is Morgan Stanley in Trouble?
Morgan Stanley is one of the most famous financial services and investment management firms in the United States, and possibly worldwide.
Based in New York, Morgan Stanley was established in 1935. For history fans, Morgan Stanley was created because of the 1933 Banking Act (Glass-Steagall Act). That law required banks that handle deposits and loans to be separate from investment banks whose goal is to make profits by investing.
Right from the start, Morgan Stanley was among the largest investment banks in the US, accounting for over 20% of the market. Over time, it has evolved, and today it focuses on:
- Institutional securities (such as bundled loans and combined real estate).
- Wealth management, which is complete financial advice for wealthy clients (often called high-net-worth individuals, or HNWIs). They have so much money that managing it can be a full-time job. This includes regular investing, plus estate and tax planning.
- Investment management, which is what many people think of when they picture Morgan Stanley.
Morgan Stanley’s long track record shows that it is both safe and legitimate, and this opinion is shared by experts. The Financial Stability Board, a worldwide monitoring group that tracks global economic conditions, has named Morgan Stanley “systematically important.” That means Morgan Stanley is vital to worldwide financial health.
Is Morgan Stanley a Scam?
Definitely not. Some people may have had negative experiences with Morgan Stanley, but that doesn’t mean the firm is a scam.
Investing involves risks, and although Morgan Stanley’s advisors are highly trained and certified, no one can guarantee success—even with top-tier managers. Given Morgan Stanley’s strong reputation and global importance, it’s highly unlikely they would jeopardize their status by engaging in any scheme.
If customers want more evidence, they can check the firm’s Investor Relations section. Morgan Stanley has a long record of strong financial results, and the SEC requires them to disclose all necessary financial information. This lets customers investigate and see for themselves that it isn’t a scam.
Is Morgan Stanley SIPC/FDIC Insured?
SIPC/FDIC insurance is another sign of a dependable and safe firm.
Federal Deposit Insurance Corporation (FDIC)
The FDIC is a US government agency that protects and stabilizes money in FDIC-backed banks and similar institutions. Some of Morgan Stanley’s bank-related offerings, such as certificates of deposit, have FDIC insurance up to $250,000.
This means your money stays secure, and it shows the government has enough confidence in Morgan Stanley to insure it.
Securities Investor Protection Corporation (SIPC)
The SIPC is a private group established by the government. It keeps tabs on businesses that offer investments. It also helps customers recover money if a company closes down and its assets are sold.
Morgan Stanley is part of the SIPC, but that doesn’t mean clients get their money back if an investment fails. Rather, it helps protect principal amounts if Morgan Stanley were to fail and liquidate. Although that’s very unlikely, it can be reassuring for investors.
Morgan Stanley Reviews
Morgan Stanley’s BBB page might worry some new customers. It has a 1.13/5 star rating. But this can be misleading. In the last three years, only 51 complaints were filed, and 28 of those were resolved in the past year, while Morgan Stanley serves over 3.5 million households. This suggests that some unhappy customers are quite vocal, but most clients are satisfied.
That said, here are a few BBB complaints from Morgan Stanley customers:
- Being charged low balance fees on investment accounts.
- Stock prices dropped (beyond Morgan Stanley’s control) before a customer could sell.
- Occasional issues with customer service.
- Difficulty closing accounts.
These situations show a few negative experiences but don’t reflect Morgan Stanley’s overall performance.
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Is Morgan Stanley Legit?
Yes. Morgan Stanley is one of the largest financial services firms worldwide and is recognized by both international and US regulators. Some clients may have disappointing experiences, and no investment is guaranteed to grow, but that doesn’t make Morgan Stanley a scam. The firm has operated for almost a century and is likely to continue well into the future.
Updated on 1/16/2025.
Arthur Chachuna is a professional personal finance blogger, and the owner of Brokerage-Review.com.
He has been an avid investor for 25 years, and has a background in both applied math and programming.
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