Updated 2026-03-20

Fidelity vs Morgan Stanley 401(k) Comparison

Compare Fidelity Investments (#1, 9.5/10) and Morgan Stanley at Work (#19, 6.8/10) side by side across fees, ratings, features, and investment options.

Overall Comparison

FeatureFidelityMorgan Stanley
Overall Score9.5/106.8/10
Rank#1#19
AUM$4.5 trillion$6.2 trillion
Participants43 million6 million
Plan Sponsors23,000+15,000+
Founded19461935

Ratings Comparison

CategoryFidelityMorgan Stanley
Fees & Costs4.9/53.0/5
Investment Options4.9/54.5/5
Customer Service4.8/54.1/5
Mobile App4.7/54.0/5

Fee Comparison

Fee TypeFidelityMorgan Stanley
Admin Fees$0 - varies by planVaries by plan size and services
Expense Ratios0.00% - 0.75%0.03% - 1.5%
Trading Fees$0 for stocks/ETFs$0 for stocks/ETFs via E*Trade
Advisory Fees0.35% - 1.0%0.50% - 1.5%

Fidelity Strengths

Morgan Stanley Strengths

Rollover, Loans & Withdrawals

FeatureFidelityMorgan Stanley
Rollover PlatformNetBenefitsMorgan Stanley at Work Portal
Loans AvailableYesYes
Withdrawal MethodsOnline via NetBenefits, Phone (800-343-3548), Fidelity branch officesOnline via Morgan Stanley portal, Phone (800-869-3326), Through Morgan Stanley financial advisor, Branch office visit
Distribution OptionsLump sum, Partial withdrawal, Installment payments, Rollover to IRALump sum, Partial withdrawal, Systematic withdrawals, Rollover to IRA, Required Minimum Distributions

Which Should You Choose?

Choose Fidelity if you want:

  • Large employers
  • Cost-conscious investors
  • Self-directed investors
  • Solo 401(k) seekers

Choose Morgan Stanley if you want:

  • Companies with stock plans
  • Employees wanting full brokerage access
  • High-net-worth participants
  • Self-directed traders

Our Verdict: Fidelity vs Morgan Stanley

Fidelity Investments wins this comparison with a score of 9.5/10 vs 6.8/10. Fidelity excels with zero expense ratio index funds (fzrox, fzilx), making it the stronger choice for most investors in this matchup. However, the best choice ultimately depends on your specific needs, employer plan availability, and investment preferences.

Full Fidelity Review Full Morgan Stanley Review

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Fidelity vs Morgan Stanley: Complete 401(k) Comparison for 2026

Choosing between Fidelity Investments and Morgan Stanley at Work for your 401(k) is an important decision that affects your retirement savings. Fidelity offers largest provider while Morgan Stanley is known for wealth management. In terms of fees, Fidelity charges 0.00% - 0.75% expense ratios compared to Morgan Stanley's 0.03% - 1.5%. Fidelity manages $4.5 trillion in assets and serves 43 million participants, while Morgan Stanley has $6.2 trillion AUM and 6 million participants.

Key Differences: Fidelity vs Morgan Stanley

When comparing Fidelity and Morgan Stanley, consider their core strengths: Fidelity excels with zero expense ratio index funds (fzrox, fzilx), while Morgan Stanley stands out for access to morgan stanley financial advisors. Both providers offer a wide range of investment options including target-date funds, index funds, and managed accounts. Fidelity's customer service rating is 4.8/5 compared to Morgan Stanley's 4.1/5. For mobile experience, Fidelity scores 4.7/5 while Morgan Stanley scores 4.0/5.

Which Provider is Right for You?

Choose Fidelity if you prioritize large employers. Choose Morgan Stanley if you're looking for companies with stock plans. Your decision should also consider your employer's plan availability, fee sensitivity, desired investment options, and customer service expectations. For detailed reviews, visit our individual Fidelity and Morgan Stanley provider pages.

Frequently Asked Questions

Fidelity Investments scores higher in our 2026 rankings with 9.5/10. Fidelity is best for large employers, while Morgan Stanley is best for companies with stock plans. The right choice depends on your employer's plan and your priorities.

Fidelity charges expense ratios of 0.00% - 0.75% with admin fees of $0 - varies by plan. Morgan Stanley charges 0.03% - 1.5% expense ratios with admin fees of Varies by plan size and services. Fidelity's fees rating is 4.9/5 compared to Morgan Stanley's 3.0/5.

Yes, you can roll over between Fidelity and Morgan Stanley. Fidelity uses NetBenefits for rollovers, while Morgan Stanley uses Morgan Stanley at Work Portal. A direct rollover avoids mandatory tax withholding. Contact your new provider to initiate the transfer.

Fidelity offers 401(k) loans. Morgan Stanley offers 401(k) loans. Both providers typically allow loans up to 50% of your vested balance or $50,000, whichever is less.

Fidelity scores 4.9/5 for investment options, while Morgan Stanley scores 4.5/5. Both offer target-date funds, index funds, and managed accounts. Fidelity's investment options include Index Funds, Target Date Funds, Mutual Funds. Morgan Stanley offers Mutual Funds, Target Date Funds, Index Funds.

For small businesses, consider plan minimums and per-participant costs. Fidelity is best for large employers, cost-conscious investors, self-directed investors, solo 401(k) seekers. Morgan Stanley is best for companies with stock plans, employees wanting full brokerage access, high-net-worth participants, self-directed traders. Compare admin fees: Fidelity charges $0 - varies by plan vs Morgan Stanley's Varies by plan size and services.

Pavlo Pyskunov

Pavlo Pyskunov

Managing Director & Investment Fund Director

Pavlo Pyskunov analyzes employer-sponsored retirement plans using IRS publications and DOL Form 5500 filings, helping workers maximize their 401(k) savings through data-driven guidance.

Last updated: 2026-03-20