Morgan Stanley

Morgan Stanley is based in New York. Financial advisors custody client assets at the firm, E*TRADE serves self-directed investors, and Eaton Vance sits in the investment-management arm.

Recruiting an advisor from Merrill or UBS moves a book of households, and those households then depend on Morgan Stanley for reporting, lending against portfolios, and cash sweeps. E*TRADE competes with Schwab, Fidelity, and Robinhood for self-directed trading, where order handling and cash yields are the commercial terms.

Institutional securities, including equity underwriting and trading, remain the other half of the firm and overlap Goldman Sachs and JPMorgan. A client can use the investment bank without using the wealth platform, but the firm's strategy has been to make wealth the more stable engine.

Advisor-held assets are sticky because ACAT transfers and portfolio loans take time and client consent.

E*TRADE cash and order flow compete in the same retail pool as Schwab and Fidelity.

Investment-banking mandates are episodic and shared with the other bulge-bracket firms.

Households whose advisor moved to Morgan Stanley often move the accounts because the relationship moved.

Self-directed E*TRADE customers can leave more easily, and they compare cash yields and tools directly.