NerdWallet’s rating: / 5
Merrill Edge is best for:
- Commission-free trading
- Bank of America customers
- High-balance customers
- Customer service
- Penny stock traders
Current promotion
Open and fund a new Merrill Edge investment account or IRA and get a cash bonus of up to $600.
Merrill Edge at a glance
| Account types | • Individual and joint non-retirement accounts • Traditional, Roth, rollover, SEP and SIMPLE IRAs • Trust accounts • Business accounts • 529s, UGMA and UTMA • Custodial accounts |
| Account minimum | $0 |
| Account fees | $49.95 full outgoing account transfer (closing) fee |
| Stock/ETF commissions | $6.95. Customers who maintain combined balances of $25,000 or more in Bank of America deposit accounts or combined balances of $25,000 or more in Merrill Edge self-directed accounts can qualify for up to 30 commission-free trades per month. |
| Mutual funds | More than 5,000 no-transaction-fee mutual funds |
| Commission-free ETFs | None |
| Options | $6.95 + $0.75 per contract |
| Tradable securities | • Stocks • Bonds • Mutual funds • ETFs • Options |
| Broker-assisted trades | $29.95; $6.95 for automated phone trades |
| Research and data | Yes |
| Customer service | Phone support 24/7; live chat and email support. Investors can consult with a Merrill Edge Financial Solutions Advisor by phone or at more than 2,000 Bank of America locations. |
Where Merrill Edge shines
Customer service: Merrill Edge’s customer service has improved greatly over the past few years. The company has around-the-clock phone support, along with chat and email, and customers can schedule complimentary consultations in person or over the phone with Merrill Edge Financial Solutions Advisors, who are in more than 2,000 Bank of America locations across the U.S. Merrill Edge’s website also has a lot of educational resources, including videos, courses, webinars and articles, all searchable by investing experience or topic. Morningstar’s investing classroom is available on the site.
Commissions and fees: Merrill Edge’s $6.95 stock and ETF trade commission is certainly on the low side compared with many competitors, beating out TD Ameritrade, Schwab and Fidelity. It’s a couple of dollars higher than others — namely OptionsHouse and TradeKing, which both offer $4.95 commissions, as well as brokers like Interactive Brokers that are a good value for high-volume traders. The company’s fees are also competitive, with no inactivity charges and a low account closing fee.
Commission-free trading promotion: Merrill Edge has a continuous promotion that allows customers to earn up to 30 commission-free trades each month. To qualify, customers must have a balance of $25,000 or more in their Bank of America deposit accounts, or $25,000 in cash in a Merrill Edge self-directed account.
In addition, clients who qualify for the company’s Preferred Rewards Platinum Honors status can have access to 100 commission-free online equity trades per month. To gain that status, you must have an active Bank of America personal checking account and maintain a three-month average combined balance of $100,000 in qualifying Bank of America deposit accounts and/or qualified Merrill Edge and Merrill Lynch investment accounts. This program also gives clients access to other discounts and promotions.
Integration with Bank of America: Merrill Edge is a product of Bank of America’s acquisition of Merrill Lynch, and it’s clear that the parent company has made every effort to create a seamless experience for clients who use both services. Customers can view their Bank of America accounts and Merrill Edge accounts with a single login, and real-time transfers move money between accounts instantly. The same integrated experience is available on mobile — and customers can even view their Merrill Edge investment account balances on Bank of America ATMs.
Research: The company provides research from its own BofA Merrill Lynch Global Research, as well as third-party providers Morningstar, S&P Capital IQ and Recognia. Mutual fund reviews and rankings come from both Morningstar and Lipper, and the company compiles a list of Merrill Edge Select ETFs and Merrill Edge Select Funds, with the top funds in each category as evaluated by Merrill Lynch investment professionals.
Penny stocks: Merrill Edge doesn’t impose surcharges for stocks that trade below $1, making it a low-cost choice for penny stock traders.
Where Merrill Edge falls short
Trading platform restrictions: Like many brokers, Merrill Edge offers both website trading and an active trader platform, called Merrill Edge MarketPro, which is browser-based. The company’s website is clean and intuitive, and offers several screeners so investors can quickly sort through stocks, mutual funds, ETFs and bonds. The MarketPro platform is also robust, with much of what active traders expect: interactive charting functionality, alerts, a customizable dashboard, and streaming data and news. But MarketPro requires Java and has restricted access; it’s available only to customers who maintain a balance of $50,000 or more in Merrill Edge, Merrill Lynch or Bank of America accounts or make at least 15 trades per quarter. Level II quotes are available only to investors who trade at least 30 times per quarter, or maintain a total combined balance of $1 million or more in their Bank of America and Merrill Lynch accounts.
Commission-free ETFs: The company doesn’t have any. That certainly isn’t unheard of at a discount broker, but it’s worth noting. Even with Merrill Edge’s low-cost commissions, ETF investors may pay more here, unless they can qualify for the free trading promotions outlined above. Those commission-free trades can be used for ETFs.
The bottom line
Merrill Edge and Bank of America provide a one-stop shop for banking and investing needs; customers of both will appreciate the thoughtfully integrated experience. But even as a standalone, Merrill Edge excels with robust research, low commissions, no account funding requirement and minimal fees — and the offer to waive commissions for qualified customers is unmatched. The company ranks among the top of the field when it comes to online brokers.
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Arielle O’Shea is a staff writer at NerdWallet, a personal finance website. Email: aoshea@nerdwallet.com. Twitter: @arioshea.
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