If you don’t recognize the name Merrill Edge, you’ll likely recognize the name Merrill Lynch, as that was what this broker was named previously before rebranding. Merrill Edge is the wealth management and investing branch of Bank of America, and its sister investment firm is Bank of America Securities.
Merrill Edge has excellent research tools and free trading for certain products. This broker targets more casual investors (as opposed to Interactive Brokers and other firms that target fast-paced, experienced investors). It also targets Bank of America customers, who will appreciate how their accounts and ME accounts integrate.
Merrill Edge has its cons—namely, if you’re an advanced trader, you’ll find that there are not a lot of securities on offer. Casual investors shouldn’t find that problematic. Another highlight of this broker, discussed below, is the customer support. You can walk into 2,500 Bank of America locations to get help with your Merrill Edge account.
Pros and Cons
Pros
- Portfolio analysis tools are comprehensive and really dive into your assets
- Bank of America customers can integrate their accounts with this broker
- Both the third-party and proprietary research tools are top notch
Cons
- No futures, cryptocurrency, or futures options
- Limited securities
- High fees for some products and high margin interest
Recommended For
Why These Pros
It’s no surprise that a bank as advanced as Bank of America has a lot of proprietary and third-party research tools at its disposal. The portfolio analysis products offered allow you a very comprehensive look into your assets and, basically, how you’re doing as a trader. This is another aspect of ME that casual or beginning traders will like. Bank of America customers get all that and more, as Bank members qualify for benefits unique to account holders.
Why These Cons
When it comes to the cons, these negatives mostly revolve around product limitations. There are no futures options, cryptocurrency, or futures at ME. The online options spread is only two-legs. Also, securities are limited as well. Lastly, certain products have high fees attached to them, and the margin interest is high as well.
Who Is Merrill Edge Recommended For?
As aforementioned, Merrill Edge is best for casual traders. Beginners will also benefit from the in-depth portfolio analysis and research tools. This broker is excellent for Bank of America customers in particular, especially those who are planning to make trading a long-term revenue-generator. Advanced traders may find that this is not the broker for them because of the high fees, high margin, and product limitations.
Regulated By
- SIPC (US)
- SEC (US)
- FINRA (US)
Top Features
Fundamental Research
When it comes to screeners, this broker shines. Stock, ETF, mutual fund, options, and fixed income screeners especially get high marks. For stocks, you’ll find that there are various pre-defined screeners, such as “Cash Cow” or “Warren Buffett Stocks.” Options have an Options Strategy Builder, which will guide you through devising a strategy based on how underlying stock looks.
Idea Builder
This just launched in August of 2020. Idea Builder is a visual, customized experience powered by artificial intelligence. This engine shows professional research in an all-new way, targeting your experience level and interests. This trading idea engine pretty much pulls together all the information that has been on the ME site for years, combining and streamlining it for you.
MarketPro
The Merrill Edge MarketPro is the firm’s downloadable client. As with other downloads that you see from brokers, it gives you trading access, account access, and a dashboard that you can personalize. In addition to placing trades and doing everything you would expect from a platform, MarketPro has a highlight to it: third-party research. You get real-time data ad news from different sources (Business Wire, Dow Jones, PR Newswire, etc.). While not a new feature, MarketPro’s news offering is perhaps the most expansive out there.
Portfolio Analysis (Especially Dynamic Insights)
ME recommends that traders use the portfolio analysis tools, regardless of their experience level. Portfolio Story is the main feature that offers a 120-second streaming data report, which takes real-time data and uses it to tell how your portfolio is performing. The video includes links to an ESG rating for your portfolio. Dynamic Insights, an analysis feature that launched in the spring of 2020, adapts to changes in your portfolio in real-time.
Bank of America Customers
As mentioned, Bank of America customers have a unique advantage with this broker. When the firm began, it started off with 500,000 customers from Bank of America, and that number has only grown since. If you have both an ME and BofA account, you only have to use a single login. You can move funds instantly between eligible accounts. There is also a Preferred Rewards program for eligible accounts. Lower fees, better interest rates, and rewards “bonuses” are just some of the potential benefits for customers.
Account Types
There are four main categories to know when it comes to accounts at ME: Retirement, College Planning, Investing, and Guided Investing.
Retirement
You can set up a retirement investing account. You can choose from a Roth IRA, Traditional IRA, Rollover IRA, or a 401(k) plan for small businesses. ME has an IRA Selector with screening questions to help you decide the retirement account that best suits your needs.
College Planning
This includes the tax-advantaged 529 savings plan with which you might be familiar, as well as a custodial (UTMA/UGMA) account. Both of these plans are designed to help maximize your tax savings on the investment account, setting it aside for your child’s (or children’s) education.
Investment & Guided Investing
This is the standard online brokerage account, comparable to accounts you see at pretty much every other broker. Merrill Guided Investing is a little different. This Guided account is a low-cost portfolio. Investment professionals who work for Merrill manage and rebalance the portfolio for you.
Trading and Investment Tools
- 24hr Trading: No
- Streaming News Feed: Yes
- Charting Package: Yes
Compliance & Regulation
Merrill Edge counts the SEC, SIPC, and FINRA among its regulatory bodies.
Fees & Commissions
- Rollover Fee: $49.95
- Margin Interest: 7.50%-8.63%
Pricing
There is no minimum deposit at Merrill Edge. Stock trade fees, ETF trade fees, and options base fees are all $0. The contract fee per options trade is $0.65, and the options exercise and options assignment fees are both $2.95. Mutual fund trade fees are $19.95, and broker-assisted trade fees are $29.95. The broker assistance fee is a bit more expensive than at other brokers, as it is usually $25.
Reliability & Security
The reliability of MarketPro is enhanced by the Troubleshooting Guide, which basically gives you an answer for anything that is going wrong with the downloadable client. Additionally, the firm has expanded customer service hours, which early/late traders will appreciate.
User Experience
Users who are interested in the basics and consider themselves “casual investors” will likely have a good experience with Merrill Edge. The downloadable platform especially promotes user satisfaction, as it offers news and analysis that enhances your portfolio. It’s easy to get lost in the weeds while trading—having a portfolio analysis tool lets traders see the bigger picture.
Final Thoughts
Merrill Edge’s zero fees on certain trades, as well as its robust research and education offering, means that it will yield a good experience for casual investors. If you’re a Bank of America customers, you will especially benefit from this broker, as your account and your Merrill Edge account are seamlessly integrated. Traders who want more products and lower fees on certain products (especially those traded by experienced investors) should look elsewhere.
Contact Info
World Financial Center, 220 Vesey Street New York, NY 10281
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