Merrill Edge Review 2024

Why choose Merrill Edge

Merrill Edge is a US-based broker owned by Bank of America (BofA).

It offers low trading fees, including commission-free stock and ETF trades. The account opening process is fast and seamless. The broker is considered highly reliable due to the reputation of its parent company, Bank of America. It is a good choice for beginner investors.

Merrill Edge is only available to US residents and offers only US-based products. There is no demo account in its educational portfolio, and electronic wallets and credit cards are not available to fund accounts.

AwardBroker gave Merrill Edge a 4.6/5 rating based on analyzing 600+ criteria and testing via opening a live account.

Pros

Low trading fees
Easy and seamless account opening
Strong parent company

Cons

Limited to US clients and products
No demo account
Few options for deposit/withdrawal

Merrill Edge at a glance

🗺 Country of regulation	USA
💰 US stock fee	Commission-free stock and ETF trading
💰 Inactivity fee charged	No
💰 Withdrawal fee	$0
💰 Minimum deposit	$0
🕖 Time to open an account	1 day
🎮 Demo account provided	No
🛍️ Products offered	Stock, ETF, Fund, Bond, Options

Fees

Score: 4.2/5

Merrill Edge has overall low trading and non-trading fees, including commission-free stock and ETF trades. However, margin rates are high.

✅ Pros	❌ Cons
❖ Commission-free trading (stocks, ETFs) ❖ Low non-trading fees	❖ High margin rates for stock trading

We compared Merrill Edge‘s fees with two similar brokers we selected, Fidelity and Vanguard. These competitors were selected based on objective factors like products offered, client profile, fee structure, etc. See a more detailed comparison of Merrill Edge alternatives.

Commission-free stock and ETFs

It’s extremely great as Merrill Edge has commission-free US stock trading.

Broker	US stock
Merrill Edge	$0.0
Fidelity	$0.0
Vanguard	$0.0

High margin rates

Merrill Edge USD margin rate fees are higher than the industry average. USD margin rate fees are calculated as follows: Not published by Merrill Edge, we estimated below based on previous rates

Broker	USD margin rate
Merrill Edge	12.6%
Fidelity	13.6%
Vanguard	13.8%

Low options commission

Merrill Edge US stock index options fees are about half of the industry average. US stock index options fees are calculated as follows: $0.65 per contract

Broker	US stock index options
Merrill Edge	$6.5
Fidelity	$6.5
Vanguard	$10.0

The broker charges $0.65 per contract. Sales of options are subject to an additional transaction fee of between $0.01 and $0.03 per $1,000 of principal.

No inactivity fee, average withdrawal fee

There is no inactivity fee and no account opening fee. There are also no deposit or withdrawal fees.

Broker	Inactivity fee	Withdrawal fee
Merrill Edge		$0
Fidelity		$0
Vanguard		$0

Preferred Rewards program

The Bank of America Preferred Rewards program offers various benefits and rewards to Merrill Edge clients who also have a Bank of America bank account.
Benefits include discounts on Merrill's Guided Investing advisory service, as well as on loans and credit card fees, and higher interest on savings.
To qualify, clients need to have an average 3-month combined bank/investment account balance of at least $20,000. There are four tiers (Gold, Platinum, Platinum Honors, Diamond) going up to a combined balance of $10 million. Benefits grow by each tier.

Other commissions and fees

Average mutual fund commission: trading mutual funds involves the following charges – $19.95 per transaction, but there are also more than 800 funds that are free to trade.

Low bond commission: US treasury bonds come with the following charges – $0 for online trades.

Broker	Mutual fund	US micro e-mini stock index futures
Merrill Edge	$20.0	–
Fidelity	$37.5	–
Vanguard	$20.0	–

Safety

Merrill Edge is regulated by top-tier US authorities and its clients are protected by a high investor protection amount. On the negative side, negative balance protection is not provided.

✅ Pros	❌ Cons
❖ Majority of clients belong to a top-tier financial authority ❖ High level of investor protection ❖ Banking background	❖ No negative balance protection

Is Merrill Edge regulated?

Yes, it is regulated by the US Securities and Exchange Commission (SEC) and the Financial Industry Regulatory Authority (FINRA).

Is Merrill Edge safe?

To be certain that a brokerage is safe, we highly advise that you check two facts:

how you are protected if something goes wrong
the background of the broker.

How you are protected

At Merrill Edge, as a unit of Bank of America Corp, all customers are covered by the US investor protection scheme, called the Securities Investor Protection Corporation (SIPC). SIPC investor protection shields investors from the loss of cash and securities in case the broker goes bust. The limit of SIPC protection is $500,000, including $250,000 for cash.
Not all investments are protected by SIPC. In general, SIPC covers notes, stocks, bonds, mutual funds and other investment company shares, and other registered securities. It does not cover instruments such as unregistered investment contracts, unregistered limited partnerships, fixed annuity contracts, currency, and interests in gold, silver, or other commodity futures contracts or commodity options.

Country of clients	Protection amount	Regulator	Legal entity
USA	SIPC: $500,000 ($250,000 cash limit)	Securities and Exchange Commission (SEC) Financial Industry Regulatory Authority (FINRA)	Merrill Lynch, Pierce, Fenner & Smith Inc.

Merrill Edge does not provide negative balance protection. If the balance on your account goes into negative, you will not be protected.

Background

Merrill Edge was established in 2010. Its parent company, Bank of America, was established in 1998. The longer the track record a broker has, the more proof we have that it has successfully survived previous financial crises.
The fact that the parent company has a banking license means that Merrill Edge is also subject to tougher regulations than other brokers. What's more, Bank of America is listed on the stock exchange, which is a big plus for safety as the bank releases financial statements regularly and transparently.
Merrill Edge's safety profile is boosted by the fact that the broker's parent company has a banking background, is listed on the stock exchange, and is regulated by top-tier regulators.

FIND YOUR SAFE BROKER

Deposit and withdrawal

Score: 1.6/5

Merrill Edge has an easy-to-use deposit and withdrawal system with a bank account connection. Unfortunately, you can only fund your account via bank transfer, bank cards are not available as an option.

✅ Pros	❌ Cons
❖ Free withdrawal ❖ No deposit fee ❖ User-friendly	❖ Bank card not available ❖ Slow withdrawal

Account base currencies

At Merrill Edge, the only available base currency is USD.

Broker	Number of base currencies
Merrill Edge	1
Fidelity	16
Vanguard	1

If you have a personal bank account in a currency other than USD, then you will be charged a conversion fee.

A convenient way to save on currency conversion fees is by opening a multi-currency bank account at a digital bank. These usually offer bank accounts in several currencies with great currency exchange rates, as well as free or cheap international bank transfers. Opening an account only takes a few minutes on your phone.

Deposit fees and options

Merrill Edge charges no deposit fees.

Besides bank transfers, you can also use check payments. Wire transfers cost $25.

Due to US regulations, US citizens cannot use credit cards to fund their brokerage accounts. They can only use debit cards, where available.

Broker	Bank transfer
Merrill Edge
Fidelity
Vanguard

A bank transfer can take several business days. You can only deposit money from accounts that are in your name.

Merrill Edge review – Deposit and withdrawal – Deposit

Merrill Edge withdrawal fees and options

Merrill Edge charges no withdrawal fees. You can use the same options for withdrawal as for deposit. Wire transfers cost $25.

Broker	Bank transfer
Merrill Edge
Fidelity
Vanguard

You can only withdraw money to accounts in your name.

How long does it take to withdraw money from Merrill Edge? We tested the bank transfer withdrawal and it took more than 3 business days.This is a lengthy process compared to other brokers.

How do you withdraw money from Merrill Edge?

Log in to the account
Go to ‘Accounts', then select ‘Transfer Money & Securities'
Decide whether you would like to withdraw cash or securities (securities can take longer than 8 days to transfer)
Select the withdrawal method you want to use. For the cash banking connection withdrawal:
Select your Merrill Edge account as ‘Transfer from'
Select the account you want to withdraw the money to as ‘Transfer to'
Enter the amount you wish to withdraw, set the frequency
Initiate the withdrawal

Merrill Edge review – Deposit and withdrawal – Withdrawal

Account opening

Score: 5/5

Account opening at Merrill Edge is seamless and fully digital; it took us less than a day to have an open account. Only US clients are accepted.

✅ Pros	❌ Cons
❖ Fast ❖ Fully digital ❖ No minimum deposit	❖ Only US clients are accepted

Can you open an account?

What is the minimum deposit at Merrill Edge?

The required Merrill Edge minimum deposit is $0.

This is the case for most account types. The 529 NextGen Direct account requires a low, $25 deposit. In addition, if you would like to trade on margin, you need to maintain a minimum balance of $2,000.
You can also open guided accounts, which are suitable for clients preferring professional assistance in their investment decisions. The minimum deposit for these accounts ranges from $1,000 to $20,000.

Account types

There are many account types you can choose from.

Account Type	Short Description
Individual Brokerage Account	General investing account with a single individual, no minimum deposit
Joint Brokerage Account	General investing account with two individuals, no minimum deposit
Custodial Account	General investing account for the beneficiary, no minimum deposit
Rollover/Traditional/Roth IRA	Type of retirement savings account with tax benefits, no minimum deposit
529 College Savings Plan	College investment account, minimum deposit $25
College Planning Custodial Account	College investment account for the beneficiary, no minimum deposit
Trust	Account is owned by an individual on behalf of other beneficiaries
Small Business	Account is owned by small businesses
Merrill Guided Investing	Merrill Edge's technology and professionals help with your investments. The minimum deposit is $1,000, while the annual fee is 0.45% of your assets.
Merrill Guided Investing with an advisor	Merrill Edge professionals help with your investments by giving you personalized guidance. The minimum deposit is $20,000, while the annual fee is 0.85% of your assets.

In this review, we tested the Individual Brokerage Account. The account opening process is different if you are already a client of Bank of America or Merrill. In our test, we did not use either a Bank of America or a Merrill account.

How to open your account

We really liked the fully digital, fast and user-friendly account-opening process. It took less than one day to open an account without an already existing bank account. This simplicity and speed are unusual for US brokers; for instance, the account opening at Interactive Brokers is very complicated. However, it is similar to competitor firm Chase You Invest, which is also connected to a banking company and has an easy account opening process.
So what does the process look like? At first, you have to go through a 5-step registration process, which takes roughly 20 minutes. Most of the questions are related to personal information and data, while others inquire whether you would like to apply separately to trade on margin, apply for a debit card, or apply for check-writing privileges.
During this process, you have to verify your identity and residency by entering the following:

Whether you are a US resident
US phone number
Social Security Number
Address, marital status, date of birth
Net worth and primary source of household income

Merrill Edge review – Account opening

Mobile app

Score: 4.8/5

The Merrill Edge mobile app, available for iPhone and Android devices, is easy to use and provides a safe and easy login. On the other hand, the search functions could be improved.

✅ Pros	❌ Cons
❖ User-friendly ❖ Two-step (safer) login ❖ Touch/Face ID login	❖ Poor search function

The web and mobile trading platforms are really similar to each other, but we weigh simplicity and easy handling as more important for mobile trading platforms. That is why the Merrill Edge mobile trading platform has a higher score than the web trading platform.
The major difference compared to the web trading platform is that you can't trade bonds on the mobile trading platform. This strikes us as very unusual, but the mobile platform of competitor Chase You Invest has the same limitation.

The mobile trading platform is available in English on iPhone and Android. We tested it on iOS and noticed that the application in Apple's app store has good reviews in general.

Look and feel

The Merrill Edge mobile trading platform is well-designed and simple to use. It offers a consistent feel with the broker's web trading platform.

Merrill Edge review – Mobile trading platform

Login and security

Merrill Edge provides a safer, two-step login for its mobile platform.

You can log in using biometric authentication, which is a convenient feature.

Search functions

The search functions are OK.

You have to enter the ticker symbol or the name of the company or asset in order to access it. Other ways to search are limited, but due to the necessity of having a simple mobile application, this seems okay.

Merrill Edge review – Mobile trading platform – Search

Placing orders

You can use the following order types on the mobile trading platform:

Market
Limit
Stop
Stop Limit
Trailing Stop

There are also order time limits you can use:

Day
Good til canceled (GTC)

Merrill Edge review – Mobile trading platform – Order panel

Alerts and notifications

You can set alerts and notifications on the Merrill Edge mobile platform.

The types of alerts include:

Investment Alerts
Account Alerts
Market Alerts
Security Alerts

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Desktop platform

Score: 4.3/5

Merrill Edge has a user-friendly and simple trading platform with a secure login and price alerts. However, it offers only limited customizability and the search function is not so advanced.

✅ Pros	❌ Cons
❖ User-friendly ❖ Clear fee report ❖ Two-step (safer) login	❖ Limited customizability (for charts, workspace)

The Merrill Edge MarketPro desktop trading platform is available to all clients but is primarily aimed at active traders.