Moving forward together

Morgan Stanley will be assuming responsibility for the custody and clearing services provided by E*TRADE Securities. Here's what you need to know.

As you may know, E*TRADE and Morgan Stanley joined forces in late 2020. We’re now entering a new phase of our journey together and are excited to share with you what’s next.

Morgan Stanley Smith Barney LLC (Morgan Stanley) will soon be assuming responsibility for the custody and clearing services currently provided by E*TRADE Securities LLC (E*TRADE). As a result, your E*TRADE account(s) will be transferred to Morgan Stanley over the coming months. We’ll notify you as your transfer date approaches—and will keep you informed every step of the way.

No action is required on your part for this transfer to take effect. You will continue to enjoy the online experience you’ve come to expect from us, including the E*TRADE website, mobile apps, trading platforms, and customized product features.

Please note: Account transfers will occur on a rolling basis. To find the transfer date for your account(s), see the Notice of Changes that was sent to your email or home address. If you haven’t yet received this communication, your transfer date is not immediately upcoming.

About 1 week before transfer weekend On the Tuesday before transfer weekend On the Friday of transfer weekend

All outgoing account transfer requests will be rejected and will need to be resubmitted (using your new account number) after transfer weekend.

You will no longer be able to change your sweep option until after the transfer has been completed.

Processing of all incoming account transfer requests will be paused until after transfer weekend. Starting after the close of extended hours trading, all open orders except futures will be canceled, and online account access will be disabled through Sunday afternoon. This could also impact your access to any banking accounts you hold with us, as well as the availability of certain banking and cash management features. Debit and ATM cards, however, will remain fully functional. Learn more about what to expect before the transfer weekend.
 

How will my E*TRADE accounts be changing?

As you may know, Morgan Stanley and E*TRADE joined forces on October 2, 2020. The next step in the process of combining our organizations will be the transfer of your account(s), assets, and obligations from E*TRADE to Morgan Stanley on your transfer date, subject to regulatory and other approvals.

Transfers will occur on a rolling basis. To find the transfer date for your account(s), please see the Notice of Changes sent to your email or home address. If you haven’t yet received this communication, your transfer date is not immediately upcoming.

As a result of this transfer, Morgan Stanley will assume responsibility for back-office functions currently provided to you by E*TRADE, such as custody of your securities, funds, or other assets in your account(s), clearing and settling of securities transactions, margin, and corporate actions. You will, however, continue to access your account information through etrade.com and E*TRADE mobile applications, including the E*TRADE mobile app, Power E*TRADE, Power E*TRADE mobile, and E*TRADE Pro. In the event that your transfer date is adjusted, we’ll post a message to etrade.com and E*TRADE mobile applications informing you of the new date. If you wish, you can opt out of this transfer by following our opt-out instructions.

Please rest assured that there’s nothing you need to do for this transfer to take effect, and you’ll continue to enjoy the online experience you’ve come to expect from us.

Is there anything I need to do for the transfer to take effect?

No, there’s nothing you need to do for the transfer to take effect, and you’ll continue to enjoy the online experience you’ve come to expect from us.

To better understand the transfer and the impact of Morgan Stanley serving as the broker-dealer for your account(s), go to the Important Documents & Agreements tab, where you can read the E*TRADE from Morgan Stanley Client Agreement for Self-Directed Accounts and Important Account Information for Self-Directed Accounts (together, the Self-Directed Account Agreements). We encourage you to review these documents carefully, as they will govern your account(s) after the transfer.

Please note that once your transfer date has been assigned, if you add the new capabilities or open the account type(s) described below, your transfer date for those new capabilities and account(s) will be at a later date:

  • If you open a new business retirement plan
  • If you add Fully Paid Lending capabilities to an existing account or open a new account with Fully Paid Lending capabilities
  • If you enroll in a company-based equity plan following the date of your Notice of Changes—e.g., Shareworks by Morgan Stanley or E*TRADE Financial Corporate Services, Inc. (ETCS) equity programs, Morgan Stanley Employee Stock Purchase Plans, stock plans across ETCS and Shareworks, and directed share programs

What should I expect during the weekend of my transfer date?

To facilitate the transfer of your account(s), several important events will take place during the weekend of your transfer date, including the following:

  • Account access will be temporarily disabled for most of the weekend, including for your brokerage account(s) as well as any bank accounts with Morgan Stanley Private Bank that have the same log-on credentials as the brokerage account(s) being transferred. Online-initiated banking and cash management features will also be unavailable in your brokerage account(s). As a result, we encourage you to take care of any payments or transfers in advance of the weekend.
  • Any open orders will be canceled after the close of the extended hours session on the Friday before your transfer date. In many cases, these orders will be automatically reentered before the start of the next trading session. For some types of orders, however, you will need to take action to reenter the orders on your own. Learn more
  • New orders will not be accepted in the Bond Resource Center. Once the accounts are transferred, functionality in the Bond Resource Center will be restored.
  • Incoming and outgoing account transfers to other broker-dealers may be affected.

For detailed information about the above and other transfer weekend considerations, please see Before Your Transfer Date.

Will banking and cash management access be impacted during the weekend of my transfer date?

Due to platform downtime over the weekend of your transfer date, access to a variety of banking and cash management features may be affected. Plus, if you have bank account(s) with the same log-on credentials as the brokerage account(s) being transferred, you’ll be unable to access the bank account(s) online during the weekend of your transfer date. Debit and ATM cards, however, will remain fully functional, and you can continue to make payments with the existing checks associated with your bank and brokerage accounts.

If you have any urgent banking requests over the weekend of your transfer date (e.g., if you suspect fraud in your banking account or need to report a lost or stolen debit card), please contact E*TRADE Customer Service for assistance.

For additional details, see Before Your Transfer Date.

Will my account number change?

Yes, once the transfer is complete, you’ll have a new brokerage account number with nine digits, which you’ll be able to view online. For reference purposes, your old account number will also be visible on etrade.com and E*TRADE mobile applications.

You’ll also be issued a new checking account number to be used when establishing new direct deposits and automatic payments tied to your E*TRADE brokerage account. This number will appear at the bottom of any brokerage account checks you order after the transfer is completed.

Important: Even though you’ll have new account numbers as described above, any existing checks, debit cards, and automatic payments and instructions tied to your E*TRADE brokerage account will continue to operate without change. (Existing instructions include direct deposits, recurring cash transfers, mobile wallets, and more.) Going forward, however, you should use your new account number when creating new instructions.

For additional details, see After Your Transfer Date.

Will my open orders be impacted when the transfer takes place?

Yes, any open orders will be canceled after the close of the extended hours session on the Friday before your transfer date. In many cases, these orders will be automatically reentered before the start of the next trading session. For some types of orders, however, you will need to take action to reenter the orders on your own.

For a detailed look, see General treatment of open orders.

How will this affect my retirement and education savings accounts at E*TRADE?

Effective on your transfer date, E*TRADE will transfer your Individual Retirement Account (IRA), Coverdell Education Savings Account (CESA), and/or qualified retirement plan (QRP) account to Morgan Stanley. Learn more

Will my sweep option change?

As a result of the transfer, all eligible sweep option balances will be transferred to the Morgan Stanley bank sweep program called the Bank Deposit Program on or about the transfer date, except for excess balances in eligible accounts or certain limited cases in which you’re ineligible to participate or you’re a pattern day trader. Learn more about sweep options. For information about how your sweep option will be impacted during the transfer, read Changes to your sweep option.

What do I need to know or do before my transfer date?

There are some important things to keep in mind before your transfer takes place, including system downtime on the weekend of your transfer date. Also, while we’ve tried to automate as many changes as possible, you may need to take action related to certain types of open orders, banking or cash management transactions, and other issues. Learn more

What do I need to know or do after my transfer date?

While your online experience and the way you access your account(s) will remain the same, there are a number of post-transfer changes to keep in mind, including the assignment of new account numbers. Learn more

Where can I find my updated agreements and disclosures?

To view your updated agreements and disclosures, see Important Documents & Agreements.

Can I opt out of the transfer?

There is no cost associated with the transfer of your E*TRADE account(s) to Morgan Stanley. If you do not object to the transfer, no further action is required of you. We’ll automatically transfer your E*TRADE account(s) to Morgan Stanley on or around your transfer date. Your online experience and the way you access your account(s) will remain unchanged.

However, if you do not want your E*TRADE account(s) transferred to Morgan Stanley, you have the right to object. To do so, and to prevent your E*TRADE account(s) from being transferred to Morgan Stanley, you must complete both steps below:

  • Call us at 800-387-2331 to signal your intention to opt-out of the transfer; and
  • Close or move your E*TRADE account(s) to another broker-dealer of your choice. You must provide the receiving broker-dealer with transfer instructions and these new transfer instructions must be initiated by the new broker-dealer before the date listed in the Notice of Changes we sent you.

If you contact Customer Service to signal your objection but do not take the necessary steps to close or move your E*TRADE account(s) to a new firm, as described above, your E*TRADE account(s) will be automatically transferred to Morgan Stanley on your transfer date.

When you opt out by taking both of the steps described above, your transfer fees will be waived. If, however, you elect to move your E*TRADE account(s) after the transfer date, Morgan Stanley may assess a $75.00 transfer fee per account.

Please note: If your employer maintains the administration of its equity compensation plan with E*TRADE Corporate Services or Shareworks by Morgan Stanley, you will not be able to opt out of the transfer of your stock plan account.

In the event that your account(s) or certain securities held in your account(s) are not eligible for transfer to Morgan Stanley, we will work with you to resolve your account(s) and positions.