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Morgan Stanley Self Directed Competitors
| Broker Fees |
Stock/ETF
Commission |
Mutual Fund
Commission |
Options
Commission |
Maintenance
Fee |
Annual IRA
Fee |
|
Charles Schwab
|
$0
|
$49.95 ($0 to sell)
|
$0.65 per contract
|
$0
|
$0
|
|
Robinhood
|
$0
|
na
|
$0 per contract
|
$0
|
$0
|
|
Firstrade
|
$0
|
$0
|
$0 per contract
|
$0
|
$0
|
|
Vanguard
|
$0
|
$20
|
$1.00 per contract
|
$25*
|
$25*
|
|
Morgan Stanley
|
$50 - $95
|
$50 - $95
|
$50 - $95
|
1%
|
1%
|
Morgan Stanley Review
Read detailed review of Morgan Stanley Investment Service.
Competitors of Morgan Stanley Overview
Investors who aren’t confident enough to do their own trading and financial planning might want to consider the services available with a wealth management account
at a traditional brokerage house. Yes, a wealth management account does cost more than a self-directed trading account at a discount broker. But you usually get a
lot more, especially if your money management skills are below par. Let’s take a look at the pricing schedules of some of the more popular full-service firms and see how they compare to the costs of low-cost brokers.
Wealth Management Prices and Minimums
Edward Jones offers managed accounts for a percentage of account value. An investment advisor with the broker will monitor the account and may make trading decisions, depending on the type of program selected. The cost of the service varies by program and account size, with tiered advisory fees that generally fall as assets rise. The annual fee is usually billed on a recurring basis.
Different account models have different minimums. One has only a $5,000 minimum, while another has a much higher minimum. In any case, substantial assets will be required to secure the broker’s more favorable rates.
A nice advantage with this traditional broker is that investors in fee-based managed accounts generally don’t have to pay separate commissions for trades. Edward Jones also operates one of the largest branch networks of any broker in the U.S., so it’s a good choice for people who want some extra assistance and guidance.
One of Edward Jones’ major rivals is Raymond James. Unlike its rival, Raymond James can charge commissions in brokerage accounts. The exact amounts depend on the account, product, and service model, so there is no simple one-size-fits-all commission schedule.
On top of brokerage commissions in some accounts, Raymond James charges an annual advisory fee in managed programs. Account size and program type determine the exact rate. There is also an annual account fee at Raymond James in some situations, although it can be reduced or waived under certain conditions.
Raymond James maintains some minimums for certain accounts. These can vary depending on account type. There is no minimum required for some planning and consulting services. Like Edward Jones, the broker’s best rates are for large accounts.
Merrill Lynch Wealth Management is a major player in the traditional brokerage industry. The cost of account management varies by program, advisor relationship, and asset level. There is no annual account fee in some advisory programs and no commissions on online equity transactions in self-directed accounts. However, the firm does charge for some bond transactions and other products. Besides regular brokerage accounts, Merrill Lynch also provides education savings accounts and several different IRA’s.
Merrill Lynch does not publicize exact account minimums in a simple universal format. However, its advisory fees and service levels generally become more favorable at higher asset levels, and very large accounts typically receive the best pricing.
Other Features of Wealth Management Firms
When looking at the variable pricing that most traditional firms advertise, keep in mind that the prices can often be negotiated. The firms usually state such in their mandatory filings with the securities regulators. For example, financial planning services are often available at these firms. Some brokers charge extra, although others will offer it for free for large accounts. More specific services such as estate or retirement planning can also be obtained at many of the traditional brokerage houses. Some firms may also offer consulting services to clients without any account assets.
Managed Accounts at Low-Cost Firms
While traditional wealth management accounts still exist in the 21st century, they are being challenged by the rise of low-cost managed accounts with on-line discount brokers.
For example, E*TRADE offers several different managed packages. They start at just 0.30%. The least expensive option is a robo-advisory
package where a computer makes all trading decisions. A $500 balance is required to get started.
Fidelity Investments also has a selection of advisory options for clients who would prefer to turn over their accounts to financial professionals. The broker’s robo-advisory account charges no advisory fee below $25,000 and then 35 basis points once the balance reaches $25,000. Human-managed accounts can cost more, depending on the service, balance, and investment strategy.
Charles Schwab offers
a managed account solution for free. A robot will be making trading decisions, investing your money in low-cost ETF’s while maintaining a required cash allocation.
Are Wealth Management Accounts Worth the Money?
Whether a wealth management account is worth the price paid will depend on a variety of factors. The traditional brokerage account is a good value for clients who have a lot of money to invest. It usually takes a large account balance to secure a firm’s lowest advisory fee. Large institutions with a sizeable endowment or pension fund would be a perfect fit for a Merrill Lynch account, for example.
Small investors who don’t have a lot to deposit will end up paying the highest advisory fee, which doesn’t seem very attractive in today’s competitive brokerage environment. This seems especially true if those investors have the ability to do their own financial planning and account management.
If you have less than $25,000 and can invest it on your own, you’re probably better off without a wealth management account. But if you have $100,000 or more, and don’t feel confident enough to make trading decisions, or simply don’t have the time, then a traditional wealth management account might be a good bet.
Morgan Stanley Competitors Final Thoughts
Wealth management accounts are pricey, but may be worth the cost for certain investors. Before opening an account, be sure to do plenty of homework and comparison
shopping. Many good deals can be found today from competing brokers.
Updated on 3/22/2026.
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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