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Merrill Edge is an online trading platform for beginners and experts best for existing Bank of America customers seeking low-cost trading of multiple assets like stocks, ETFs, and options.
Business Insider's personal finance team compared Merrill Edge to the best investing apps for beginners and found it to be a standard offering.
Introduction to Merrill Edge Self-Directed
Merrill Edge is Bank of America's investment and advisory program offering seamless integration with BofA banking services.
Bank of America's integration with Merrill Edge gives investors access to global research, market insight, pre-screened lists of investments, and customizable portfolio features for more investment opportunities.
Or you can open a Merrill Guided Investing managed portfolio, a robo-advisor that relies on a mix of computer algorithms and management from a team of financial experts.
With a $1,000 ($20,000 with Advisor) minimum investment, you can access a personalized online dashboard, auto-rebalancing features, income-focused retirement portfolios, and custom digital advice.
Invest in ESG custom solutions through third-party asset managers, thematic ETFs, and sustainable private investments and portfolios. Capital markets solutions include a variety of bonds (green, sustainability, and social impact), closed-end funds, market-linked investments, and unit investment trusts.
Merrill does offer one-on-one advising from financial advisors with a Merrill Guided Online with an Advisor account. The initial consultation is complimentary, but you'll need at least $20,000 in your account to add unlimited online advisor access.
How Merrill Edge Works
Here's what Merrill Edge offers.
Merrill Edge Trading Account
Merrill's self-directed brokerage account offers stocks, ETFs, options, mutual funds, and more. You can open your DIY investing account as an individual brokerage, joint, custodial, trust, or estate account.
You can access commission-free stocks and ETFs, 24/7 customer support, impact investing options, mobile trading access, access to margin lending, and other investment tools.
Merrill Edge's investment research and insights through MarketPro is a customized advanced charting tool that provides investors with:
- Intuitive screeners
- 25 customizable windows for trading
- Drawing tools
- Strategy builders
- Market insight
- Ideas Builder tool
Merrill Edge Automated Account
The Merrill Guided Investing online account is best for beginners and those who are willing to allow a team of professionals to manage their assets for them.
Merrill Edge mainly uses a diversified blend of ETFs and mutual funds when building investor portfolios.
You'll run into some other small fees besides the 0.45% (0.85% with Advisor) advisory fee. For instance, ETF sales include a transaction fee between $0.01 and $0.03 per $1,000 principal.
Merrill Edge Retirement Accounts
Merrill Investing offers tax-advantaged retirement account options, such as traditional IRAs, Roth IRAs, and rollover IRAs.
Available small business retirement plans include a small business 401(k), individual 401(k), SEP IRA, and a SIMPLE IRA. These options are available as either a self-direct account or a Merrill Guided automated account (the same minimum requirements and fees apply).
If you reach the $20,000 minimum, you can access a one-on-one human advisor access for advice and guidance on retirement investing.
A Merrill retirement account gets you access to various retirement tools, including a personal retirement calculator, a retirement account selector, a Roth IRA conversion calculator, a 401(k) rollover calculator, and an RMD calculator.
There are also new income-focused retirement portfolios to help retirees transition from retirement savings to spending, with additional growth potential. Portfolios are allocated across a diverse blend of low-risk bonds and equity investments.
Merrill Education Savings Accounts
You can save for a beneficiary's future education expenses with a state-sponsored, tax-advantaged 529 plan or a more flexible custodial UGMA/UTMA account through Merrill Invest.
The best 529 plans get investors tax-deferred growth on contributions and tax-free withdrawals on qualified expenses. You'll also get additional Merrill Edge or Merrill Guided investing features.
The college planning calculator estimates how much you need to save for tuition, school supplies, and similar qualifying expenses.
A UGMA/UTMA custodial account, on the other hand, is a taxable account that can be managed by either you or a Merrill professional.
Merrill Preferred Rewards Benefits
Merrill's Preferred Rewards program gives Merrill Investing and Bank of America account users benefits for reaching certain investment balances (learn more here). There isn't a fee to join the program. You'll need an active Bank of America checking account.
The program has three tiers:
- Gold: You'll receive a 0.05% discount on Merrill Guided Investing if you've got a three-month combined average daily balance between $20,000 and $50,000.
- Platinum: A three-month combined average daily balance between $50,000 and $100,000 will get you a 0.10% discount at this tier.
- Platinum Honors: Balances between $100,000 to $1 million give you a 0.15% discount.
- Diamond: A three-month combined average daily balance between $1 million and $10 million will get you a 0.15% discount.
Merill Edge Account Setup and User Interface
When setting up an account, Merrill Edge gives you various investing goals. These help the automated advisor choose an appropriate asset allocation for you.
You'll also need to determine your comfort level with risk. When creating your portfolio, the brokerage uses one of the following five "target asset allocation" categories: conservative, moderately conservative, moderate, moderately aggressive, or aggressive.
Merrill Edge Fees
A self-directed brokerage account with Merrill Edge doesn't require a minimum investment, and there is no account management fee. You can buy and sell stocks and ETFs commission-free.
Broker-assisted trades cost $29.95 for options, with a $0.65 per contract fee. No load, transaction fee funds cost $19.95 per trade, and $0 for no load, no transaction fee funds.
Online trades for fixed-income and bond investments charge up to $1 per bond trade with a $10 minimum and $250 max.
Merrill Guided Investing has a $1,000 ($20,000 with Advisor) account minimum and a high 0.45% (0.85% with Advisor) management fee.
You'll need to meet a steep $20,000 minimum balance requirement to get human advisor access. Advisor access also charges a 0.85% annual management fee.
Merrill Guided Investing is currently offering a $0 program fee for the first six months after your enrollment date. Keep in mind you'll still have to meet the minimum balance requirement.
Merrill Edge Pros and Cons
Merrill Edge Pros
- No account minimum for Self-Directed trading account
- Commission-free stock, ETF, and options trading
- Multiple account options (includes retirement, education, estate accounts, and trust accounts)
- Offers socially responsible investing portfolios
- Automated trading features
- Preferred Rewards members get additional perks and discounts
Merrill Edge Cons
- High $1,000 ($20,000 with Advisor) minimum to open Merrill Guided account
- A high $20,000 minimum requirement for one-on-one advisor access
- High management fees
- No tax loss harvesting
- No fractional shares or crypto trading
Merrill Edge Trustworthiness
Merrill Edge has an A rating from the Better Business Bureau. BBB ratings range from A+ to F, so this rating suggests that Merrill Edge has a strong record of customer engagement.
The BBB considers several factors when rating companies. These include type of business, time in business, customer complaint history, government actions, and licensing issues. The BBB also advises readers not to assume that its ratings guarantee a certain level of reliability or performance within a company.
December 2023, Margaret McCray, a Merrill client, filed a lawsuit against the firm, alleging that Merrill offered inadequately low-interest rates on retirees' cash sweep Merrill Edge accounts. The case is still pending.
On September 8, 2023, a financial advisor sued Merrill Lynch — another subsidiary of Bank of America's wealth management division and part of the Merrill brand — based on accusations of sex discrimination and violating the New York Equal Pay Act, as well as the human rights laws for New York City and the state. Merill denies these allegations. The lawsuit is still pending.
On April 3, 2023, the SEC charged Merrill Lynch, claiming the subsidiary failed to disclose fees of foreign exchanges to and from clients' accounts and charged $4 million to Merrill clients. Merrill Lynch agreed to settle the charges by paying over $9.5 million to affected clients.
Merrill Edge vs. Other Investment Apps
Here's how Merrill Edge compares.
Merrill Edge vs. Betterment
Betterment charges lower fees for its standard account, but it doesn't offer as many fund types as Merrill. Betterment mainly offers ETFs, while Merrill Edge offers stocks, bonds, mutual funds, ETFs, and more. But you can only trade ETFs and mutual funds with Merrill Guided.
Merill Edge charges an annual 0.45% (0.85% with Advisor) management fee, whereas Betterment only charges an annual 0.25% management fee (higher for premium users).
However, unlike the Merrill Edge Guided Investing account, Betterment offers features like tax-loss harvesting.
Merrill Edge vs. Fidelity Go
Both Merrill Guided Investing and Fidelity Go specialize in automated portfolio management, but each platform's fees and investment options vary.
Fidelity Go charges no fees for accounts with less than $25,000. Accounts with over $25,000 are charged a 0.35% annual fee, which still beats Merrill Guided's 0.45% (0.85% with Advisor) annual fee. Both a self-directed account with Fidelity and with Merrill Edge charges a $0 minimum requirement to open a brokerage account. But Fidelity offers more wealth-building products and market research.
Fidelity Go (Fidelity's automated advisor) has lower fees than Merrill Guided, but only users with lower balances can take advantage of the big price cuts. Fidelity Go invests in a portfolio of only mutual funds, whereas Merrill Guided Investing is better for those who want access to both ETFs and mutual funds.
Methodology: How We Reviewed Merrill Edge
We examined Merrill Edge Investing using Business Insider's rating methodology for investing platforms to compare and examine account types, pricing, investment options, and overall customer experience when reviewing investing platforms. Platforms are given a rating between 1 and 5.
Investment platforms usually offer multiple assets, trading tools, fees, and other resources. Some platforms are better for more advanced investors or active investors, while others may better suit beginner investors and passive investors. Merrill Edge was evaluated, focusing on how it performs in each category.
Business Insider's Overall Merill Edge Rating
| Feature | Insider rating (out of 5) |
| Fees | 4.00 |
| Investment selection | 4.25 |
| Access | 4.25 |
| Ethics | 5.00 |
| Customer service | 5.00 |
| Overall score | 4.45 |
Merrill Edge Investing FAQs
Merrill Edge is Bank of America's investment and advisory program combining online investing with access to personalized financial advice. It offers a range of comprehensive investment options, financial planning resources, retirement savings strategies, and account management.
Merrill Edge stands out as a comprehensive brokerage platform integrated with Bank of America. It provides unique benefits, such as the Preferred Rewards program and a wealth of market research and insights.
Merrill Edge offers competitive pricing with commission-free trades on stocks, ETFs, and options (options still have a $0.65 per contract fee). There are no account minimums for self-directed accounts, but automated accounts require a $1,000 minimum with a 0.45% management fee. Advisor access requires a $20,000 minimum.
Merrill Edge is suitable for beginner investors as it offers a range of instructional resources like articles, videos, and webinars covering the basics and strategies of investing and retirement savings.
Advanced traders can find value in Merrill Edge's suite of advanced charting and research tools, including market screeners and expert-curated investment portfolios. Merrill Edge also supports trading on margin, options strategies, and a customizable dashboard.
Sofi Active Invest: Investments are not FDIC-insured - Are not bank-guaranteed - May lose value - Brokerage and Active investing products offered through SoFi Securities LLC, member FINRA(www.finra.org)/SIPC(www.sipc.org).
