A fish tape reel has an ergonomic pistol grip and ergonomic hand grips at an inner periphery of a hollow housing. Fish tape is wound into the housing cavity by rotating the housing with respect to the pistol grip. This can be done manually by grasping the interior handle(s) or using a ratcheted winder that fits into the housing opening and has a lever handle for ratcheting the housing. The reel is held with the housing beneath the pistol grip which has a retainer shoe slidably sandwiched between halves of the housing. The pistol grip is positioned behind a vertical center line of the reel so that the weight of the reel is balanced in a neutral position in which the pistol grip can be grasped with the user's wrist being essentially straight and horizontal. A method of assembling the reel is also disclosed in which the fish tape is attached and wound after the housing is assembled.