Updated 2026-03-20

Schwab vs Morgan Stanley 401(k) Comparison

Compare Charles Schwab (#3, 9.1/10) and Morgan Stanley at Work (#19, 6.8/10) side by side across fees, ratings, features, and investment options.

Overall Comparison

FeatureSchwabMorgan Stanley
Overall Score9.1/106.8/10
Rank#3#19
AUM$8.5 trillion$6.2 trillion
Participants28 million6 million
Plan Sponsors3,200+15,000+
Founded19711935

Ratings Comparison

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

Fee Comparison

Fee TypeSchwabMorgan Stanley
Admin Fees$0 - varies by planVaries by plan size and services
Expense Ratios0.03% - 0.80%0.03% - 1.5%
Trading Fees$0 for stocks/ETFs$0 for stocks/ETFs via E*Trade
Advisory Fees0% - 0.80%0.50% - 1.5%

Schwab Strengths

Morgan Stanley Strengths

Rollover, Loans & Withdrawals

FeatureSchwabMorgan Stanley
Rollover PlatformSchwab.comMorgan Stanley at Work Portal
Loans AvailableYesYes
Withdrawal MethodsOnline via Schwab.com, Phone (800-724-7526), Schwab branch officesOnline via Morgan Stanley portal, Phone (800-869-3326), Through Morgan Stanley financial advisor, Branch office visit
Distribution OptionsLump sum, Partial withdrawal, Systematic withdrawals, Rollover to IRALump sum, Partial withdrawal, Systematic withdrawals, Rollover to IRA, Required Minimum Distributions

Which Should You Choose?

Choose Schwab if you want:

  • Full-service seekers
  • Active traders
  • Those wanting local branches
  • TD Ameritrade users

Choose Morgan Stanley if you want:

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

Our Verdict: Schwab vs Morgan Stanley

Charles Schwab wins this comparison with a score of 9.1/10 vs 6.8/10. Schwab excels with excellent customer service with 24/7 support, 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 Schwab Review Full Morgan Stanley Review

Other Popular Comparisons

Fidelity vs Morgan Stanley

Compare these 401(k) providers head-to-head

 Vanguard vs Morgan Stanley

Compare these 401(k) providers head-to-head

 Schwab vs Empower

Compare these 401(k) providers head-to-head

 Schwab vs T. Rowe Price

Compare these 401(k) providers head-to-head

 Schwab vs Principal

Compare these 401(k) providers head-to-head

 Schwab vs ADP

Compare these 401(k) providers head-to-head

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

Choosing between Charles Schwab and Morgan Stanley at Work for your 401(k) is an important decision that affects your retirement savings. Schwab offers full service while Morgan Stanley is known for wealth management. In terms of fees, Schwab charges 0.03% - 0.80% expense ratios compared to Morgan Stanley's 0.03% - 1.5%. Schwab manages $8.5 trillion in assets and serves 28 million participants, while Morgan Stanley has $6.2 trillion AUM and 6 million participants.

Key Differences: Schwab vs Morgan Stanley

When comparing Schwab and Morgan Stanley, consider their core strengths: Schwab excels with excellent customer service with 24/7 support, 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. Schwab's customer service rating is 4.7/5 compared to Morgan Stanley's 4.1/5. For mobile experience, Schwab scores 4.5/5 while Morgan Stanley scores 4.0/5.

Which Provider is Right for You?

Choose Schwab if you prioritize full-service seekers. 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 Schwab and Morgan Stanley provider pages.

Frequently Asked Questions

Charles Schwab scores higher in our 2026 rankings with 9.1/10. Schwab is best for full-service seekers, while Morgan Stanley is best for companies with stock plans. The right choice depends on your employer's plan and your priorities.

Schwab charges expense ratios of 0.03% - 0.80% 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. Schwab's fees rating is 4.5/5 compared to Morgan Stanley's 3.0/5.

Yes, you can roll over between Schwab and Morgan Stanley. Schwab uses Schwab.com 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.

Schwab 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.

Schwab scores 4.7/5 for investment options, while Morgan Stanley scores 4.5/5. Both offer target-date funds, index funds, and managed accounts. Schwab'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. Schwab is best for full-service seekers, active traders, those wanting local branches, td ameritrade users. Morgan Stanley is best for companies with stock plans, employees wanting full brokerage access, high-net-worth participants, self-directed traders. Compare admin fees: Schwab 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