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Morgan Stanley Reviews (2025)
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Is Morgan Stanley in Trouble?
Morgan Stanley is one of the most well-known financial services and investment management companies in the United States and worldwide.
Based in New York, Morgan Stanley was founded in 1935. For those interested in history, the company started as a result of the 1933 Banking Act, also called the Glass-Steagall Act. This law required regular banks (that take deposits and give loans) to be separate from investment banks, which aim to make profits through investing.
From the start, Morgan Stanley was a leading name in US investment banking, holding more than 20% of the market. Over time, the company has changed and now mainly focuses on:
- Institutional securities, like groups of loans and collections of real estate.
- Wealth management, which means helping wealthy people (often called high-net-worth individuals, or HNWIs) manage their money. These clients have so much wealth that they need full-time help. Services include regular investing, but also planning for taxes and what happens to money after someone passes away.
- Investment management, which is what most people think of when they hear Morgan Stanley’s name.
Because Morgan Stanley has been around for a long time, it is considered trustworthy and safe, and experts agree. The Financial Stability Board is a worldwide group that checks on the health of the global economy. They have called Morgan Stanley “systematically important,” which means the company is crucial for the world’s financial system.
Is Morgan Stanley a Scam?
No, it is not. Some people may not like Morgan Stanley because of their own bad experiences, but that doesn’t make it a scam.
All investing comes with risks, and even though Morgan Stanley’s professionals are certified and experienced, there are no guarantees, even with the best teams. Morgan Stanley is too well-known and important to risk its name or take part in any scam.
If customers want more proof, they can visit Morgan Stanley’s Investor Relations section. The company has a long track record of financial success and must share all important financial information by law, as required by the Securities and Exchange Commission. This allows anyone to check Morgan Stanley’s details themselves and see that it is not a scam.
Is Morgan Stanley SIPC/FDIC Insured?
Being SIPC/FDIC-insured is another sign that a company can be trusted.
Federal Deposit Insurance Corporation (FDIC)
The FDIC is a government agency in the US that protects money in FDIC-insured banks. Some of Morgan Stanley’s services that are like regular banking, such as certificates of deposit, are FDIC-insured up to $250,000.
This means the government promises that money up to this amount is safe, and Morgan Stanley has been approved for this.
Securities Investor Protection Corporation (SIPC)
The SIPC is a private, government-backed group. It watches over companies that sell investment products. Besides making rules, it helps customers recover their money if an investment firm closes down and sells its assets.
Morgan Stanley has SIPC insurance, but this doesn’t mean investors can get back money lost from bad investments. It means that if Morgan Stanley itself fails as a company, SIPC will help customers get their original money back. This is very unlikely, but it adds extra reassurance for clients.
Morgan Stanley Reviews
Morgan Stanley’s BBB reviews might turn potential customers away. Morgan Stanley has a 1.13 out of 5-star rating. But this can be misleading. There were 51 complaints in the last three years and 28 closed complaints in the last year. However, Morgan Stanley has more than 3.5 million clients. This shows that while some unhappy customers are very vocal, most clients are satisfied.
Some common complaints on BBB include:
- Investment accounts being charged for having low balances.
- Stocks dropping in value (not Morgan Stanley’s fault) before a client could sell.
- Uneven customer service.
- Problems closing accounts.
These negative experiences are from a small group and do not reflect how Morgan Stanley operates as a whole.
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Is Morgan Stanley Legit?
Yes, Morgan Stanley is one of the biggest financial firms in the world, recognized by governments globally. Some customers have complaints, and no investment is risk-free, but this doesn’t make Morgan Stanley a scam. The company has been in business for nearly 100 years and will likely continue far into the future.
Updated on 6/20/2025.
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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