E*TRADE in Discussions to Lead Retail Portion of SpaceX's Historic IPO

E*TRADE, a brokerage owned by Morgan Stanley, is under consideration to oversee the retail segment of SpaceX's anticipated initial public offering (IPO), according to recent reports. This potential role could shift the landscape for retail investors, as the IPO is expected to be one of the largest in history. SpaceX filed confidentially with the Securities and Exchange Commission (SEC) on April 1, 2026, for its IPO, which could raise up to $75 billion at a valuation of $1.75 trillion. The company plans to allocate up to 30% of the shares to retail investors, significantly higher than the typical 10% retail allocation. If E*TRADE secures this role, it would position the brokerage as a key player in the offering, which is expected to be highly sought after by retail investors. Morgan Stanley is among the 21 banks involved in the institutional side of the IPO. However, SpaceX has not officially confirmed E*TRADE's involvement or the reasons for selecting it over other brokers like Robinhood Markets or SoFi Technologies. The decision may be influenced by E*TRADE's client demographics. As of June 2024, the average account size on Robinhood was $10,528, while E*TRADE's average account size was $69,000 at the time of Morgan Stanley's acquisition in 2020. This suggests that E*TRADE's client base may be more affluent and experienced, potentially aligning with SpaceX's goal of attracting a stable investor base. Additionally, E*TRADE's client demographic includes older millennials, Gen Xers, and baby boomers, whereas Robinhood's average customer is 35 years old, with a significant portion under 43. The potential selection of E*TRADE could impact retail investors, as it may offer a more seasoned investor audience for the IPO. However, SpaceX has not yet confirmed the details of its IPO structure or the rationale behind its broker selection.