If you’re trying to set yourself up for a comfortable future, you may be looking into one of the many different wealth management companies available.
Of course, Morgan Stanley and Charles Schwab are two of the most popular wealth management companies. But how do you choose between the two?
Each of these has its positives and negatives, with Charles Schwab maybe being the more popular of the two, especially when you are just beginning wealth management.
The choice, though, in the end, is really up to you, and so we want to take a quick look at each of these to give you a better idea of what they offer.
By doing this, we’re hoping that we can help you along in your decision-making process. So let’s take a look at Morgan Stanley versus Charles Schwab.
Which One is More Popular?
The popularity of each of these depends on what part of your journey you are in when it comes to wealth management. For beginners, Charles Schwab is very easy to understand and navigate.
However, the wealth management services of Morgan Stanley do come with a lot of hand-holding and tons of research.
Morgan Stanley offers a wide range of services and has been one of the most popular amongst more experienced wealth management individuals for decades.
Popularity-wise, when looking at the reviews of customers, Morgan Stanley does an average rate higher than Charles Schwab.
What are the Differences?
To decide on which wealth management company to go to, you have to understand the differences between the two. When it comes to trading Charles Schwab has lower fees.
But though Morgan Stanley fees are higher, they do come with more engagement with your broker and a wealth of research.
Other than that, the only other difference is that Charles Schwab tends to be a better fit for do-it-yourself investing. At the same time, Morgan Stanley focuses on the broker/customer relationship.
Pros & Cons: Morgan Stanley vs. Charles Schwab
If the differences that we just talked about weren’t quite enough, then like us, you probably like a good pros and cons list. It’s a great way to determine whether a situation or decision meets the needs you’re looking for.
So with that said, let’s look at each wealth management service and see what they bring to the table and where they could improve.
Morgan Stanley
Pros:
- Versatile menu of options
- Great for beginning and wealthy customers
- Offers social and environmental investment opportunities
- Award-winning wealth manager company
Cons:
- Lack of standardized fees
- Conflict of interest potential
- A wealth of disciplinary disclosures
Charles Schwab
Pros:
- Multiple platforms with no minimum fees
- Easy-to-use mobile app
- Offers extensive research
- Wide range of fun selections
- Versatile stocks options and trades
Cons:
- Has a sweep rate that is low
Price Range: Morgan Stanley vs. Charles Schwab
So the next factor one will look at is the fees and price range of the companies themselves. With Morgan Stanley, you’re looking at no transaction fees for the actual trades. You will see fees when it comes to actual cash management and service. These include things like:
- $25 fee for representative-assisted trades
- $95 per account transfer
- $25 per event when it comes to legal transfers like estate processing
These are just some of the prices that you’ll have to pay to utilize their services. When it comes to Charles Schwab, they have a few fees that you should be aware of before making any final decision on which wealth management service to go with.
Charles Schwab orders no trade minimums and no account minimums, which is great. That being said, here are some of the fees you can look for when choosing to go with Charles Schwab:
- $25 service charge for broker-assisted trades
- Up to $75 foreign transaction fee
- $2.25 per contract for future options trades
Final Verdict: Price Range: Morgan Stanley vs. Charles Schwab
Looking at the few fees we discussed above, you can see that for someone dealing with a lower budget when it comes to investing, Charles Schwab fees are more in line with that.
However, Morgan Stanley may be a better option for those who want a company that can handle end scale with you. The final verdict is that it depends on what you’re looking for your wealth management company to do for you and how much you have to invest.
Final Thoughts on Morgan Stanley Vs. Charles Schwab
Morgan Stanley and Charles Schwab are both reputable and amazing options when it comes to your wealth management decisions. They each offer unique benefits that you can take advantage of.
We hope that by taking a look at each of these, we have helped, as we said in the beginning, with your decision-making process.