E*TRADE was acquired by Morgan Stanley in October 2020. The retail brokerage brand remains, but the back-end infrastructure, custody, and increasingly the fixed-income syndicate access flow through Morgan Stanley. For brokered CDs, this has been a net positive: E*TRADE's CD inventory and rate competitiveness have improved as Morgan Stanley's institutional fixed-income relationships have been integrated.
Functionally, an E*TRADE brokered CD today is what it has been for years: a CD issued by an FDIC-insured bank, purchased through E*TRADE's brokerage platform, with FDIC coverage flowing through to the customer up to the standard $250K limit per issuing bank per ownership category.
| Term | Indicative Yield Range |
|---|---|
| 3 months | 4.45-4.85% |
| 6 months | 4.55-4.90% |
| 12 months | 4.50-4.85% |
| 2 years | 4.40-4.75% |
| 3 years | 4.35-4.75% |
| 5 years | 4.40-4.80% |
Pricing is materially comparable to Fidelity and Schwab on any given day. The spread is rarely more than 5-10 basis points either way.
E*TRADE's CD shopping interface is straightforward: filter by maturity, callable/non-callable, settlement date, and issuer. Inventory depth is generally 80-150 issues on a typical day across all maturities: thinner than Fidelity's 200-300 but deeper than Vanguard's 40-60. Most of the major issuing banks active in the brokered CD syndicate (Goldman Sachs Bank USA, Morgan Stanley Bank, Capital One, Discover, Sallie Mae Bank, Synchrony, and dozens of regional banks) are represented.
E*TRADE's secondary market for CDs functions normally with reasonable bid-ask spreads on most issues. As with all secondary CD markets, prices reflect current interest rates. You may receive more or less than par depending on whether rates have risen or fallen since the CD was issued. Plan accordingly if you might need to liquidate early.
Following the acquisition, Morgan Stanley Bank USA-issued CDs are well-represented in E*TRADE's inventory. If you already hold deposits or other CDs at Morgan Stanley Bank USA (through Morgan Stanley wealth management or another channel), aggregate your exposure to stay within the $250K FDIC limit. This is the same kind of issuer concentration risk we noted in the Merrill review for Bank of America.
| Feature | E*TRADE | Fidelity | Schwab |
|---|---|---|---|
| New-issue commission | $0 | $0 | $0 |
| Secondary commission | $1/$1K, $10 min | $1/$1K, $10 min | $1/$1K, $10 min |
| Yield competitiveness | Strong | Strong | Strong |
| Inventory depth | Good | Deepest | Deep |
| Best for | Existing E*TRADE customers, MS-affiliated | Heavy CD shoppers | Schwab customers |
E*TRADE does not offer MYGAs directly through its retail platform (Morgan Stanley wealth management advisors can, on the institutional side). For the saver weighing 5-year E*TRADE brokered CDs, compare the same-day new-issue yield with A-rated 5-year MYGAs, which topped out around 5.50-6.05% on October 14, 2026 (public carrier rate sheets). The 75-125bps premium on a tax-deferred, longer-lock product is structurally meaningful for 401(k) rollover money and other long-horizon allocations.
This article reflects publicly available information and approximate rates as of the date stated above. CD rates, brokered CD inventories, FDIC and NCUA rules, and carrier MYGA rates change frequently, often daily. Always verify current values against the issuing institution's official disclosure documents before committing funds. This is general education, not a personal recommendation or an offer of any product. Hans Goldstein is an independent licensed insurance producer (NPN 20602398) appointed with multiple A-rated carriers across the annuity market; this article is not an endorsement of any specific bank, brokerage, credit union, or carrier. No compensation has been received from any reviewed institution in connection with the publication of this article. FDIC and NCUA insurance limits, ownership category rules, and the operations of CDARS, ICS, and other IntraFi programs are governed by federal regulation and the program documents; always confirm coverage with the institution and refer to FDIC.gov, NCUA.gov, or IntraFi.com for the official rules. MYGA carrier financial strength ratings, state guaranty fund limits, and tax treatment are subject to change. Always read the actual contract and consult a licensed advisor before purchasing any annuity, CD, or insurance product.
Hans Goldstein is an Enrolled Agent, admitted to practice before the Internal Revenue Service. Not affiliated with or endorsed by the IRS. General education, not tax or legal advice for your situation.