Is Merrill Edge a Good Brokerage Firm for Investing and Trading

Merrill Edge is a solid choice for investors looking for a user-friendly platform with competitive pricing. Merrill Edge offers a wide range of investment products, including stocks, ETFs, options, and mutual funds.

Its fees are relatively low, with no minimum balance requirement for most accounts. This makes it an attractive option for beginners or those with smaller investment portfolios.

Merrill Edge also offers a robust mobile app, allowing users to trade and manage their accounts on the go. The app has a 4.8-star rating in the App Store, indicating a high level of user satisfaction.

Merrill Edge has its strengths and weaknesses, and it's essential to consider both before making a decision. One of the standout features of Merrill Edge is its excellent education and retirement planning tools.

Merrill Edge offers a well-designed website with a wealth of information, making it easy to navigate and understand. They also have a vast selection of mutual funds available for purchase, with over 3,300 options to choose from.

However, Merrill Edge's commission schedule is higher than some of its competitors, with a $6.95 fee for equity trades. This can add up quickly, especially for frequent traders.

One of the unique features of Merrill Edge is its robo advisor, which includes a "sustainability" portfolio. This is a great option for investors who want to make environmentally responsible investment choices.

On the other hand, Merrill Edge's robo advisor is on the pricier side, which may be a drawback for some investors. Additionally, the broker-dealer does not offer custodial IRAs, which may limit its appeal to certain types of investors.

Here are some key pros and cons of Merrill Edge to consider:

Merrill Edge has no minimum deposit requirement, making it a great option for those just starting out.

Stock trade fees, ETF trade fees, and options base fees are all $0, which is a huge plus for frequent traders.

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, which is lower than some other brokers.

Broker-assisted trade fees are $29.95, which is a bit more expensive than some other brokers.

Here's a breakdown of the fees associated with Merrill Edge:

There are no fees associated with using the broker's website or desktop platform, which is a nice perk.

However, the platform does have a trading requirement of 15 transactions per quarter to avoid fees.

If you have a Bank of America account, you can get sweet discounts and instant money transfers, which can be a big plus.

But, keep in mind that there are some fees associated with closing an IRA, including a $49.95 IRA closure fee.

Merrill Edge offers a range of account types, including retirement accounts like IRAs and 401(k) plans, as well as a 529 savings plan for education expenses.

You can choose from a Roth IRA, Traditional IRA, Rollover IRA, or a 401(k) plan for small businesses, and use the IRA Selector to help decide which account is best for you.

Merrill Edge also offers a custodial account, also known as a UGMA/UTMA account, designed to help maximize tax savings for your child's education.

Here are some key account types and their minimums:

Merrill Edge also offers a standard online brokerage account, and a Guided Investing account, which is a low-cost portfolio managed by investment professionals.

Merrill Edge offers a variety of account types, including retirement accounts.

You can set up a retirement investing account with Merrill Edge, which includes options like a Roth IRA, Traditional IRA, Rollover IRA, and a 401(k) plan for small businesses.

The IRA Selector tool on Merrill Edge's website asks screening questions to help you decide which retirement account best suits your needs.

Merrill Edge offers a 529 savings plan, which is a tax-advantaged plan designed to help maximize your tax savings on the investment account for your child's education.

A custodial (UTMA/UGMA) account is also available, which is another type of plan designed to help save for your child's education.

Here are the main retirement account options available at Merrill Edge:

Merrill Edge also offers a Guided Investing account, which is a low-cost portfolio managed by investment professionals.

If you're looking to invest in a self-directed manner, Merrill Edge has you covered. You can find investments to suit your portfolio needs, but keep in mind that Merrill doesn't offer fractional shares, which can make it harder to diversify your portfolio if you're not swimming in cash.

One alternative to fractional shares is to invest in mutual funds or ETFs, which can provide a more diversified portfolio. If you're set on buying fractional shares, consider other brokers like Interactive Brokers, Fidelity, Schwab, or Vanguard, which offer this feature.

Merrill Edge also allows you to trade spot bitcoin ETFs, but if you're looking to trade cryptocurrencies directly, you're out of luck. Here's a breakdown of Merrill Edge's self-directed investment options:

Merrill Edge is best suited for traders who have at least $50,000 to invest, which comes with free trades and access to the broker's desktop platform.

Managed investment options are a crucial part of any investment strategy, and Merrill offers a range of services to cater to different needs and preferences.

Merrill's robo advisor, Merrill Guided Investing Online, has a low upfront minimum of $1,000, making it an attractive option for younger investors saving for retirement.

A notable feature of Merrill Guided Investing Online is its two main portfolio types: one that tracks the broad market and one focused on sustainability, which is a nice offering for socially responsible investors.

The robo advisor offers investment expenses of 0.05% to 0.07% for the market portfolio and 0.10% to 0.17% for the sustainability portfolio, which are deliciously low costs.

However, Merrill Guided Investing Online has a management fee of 0.45%, which is higher than many of Merrill's competitors, such as Vanguard, which charges 0.15% to 0.20%.

Here's a comparison of the management fees for Merrill Guided Investing Online and some of its competitors:

It's worth noting that Merrill Guided Investing Online offers a couple of bonuses, including up to six months free and up to $600 when you open a Guided Investing account with a balance of $200,000 or more.

Merrill Edge's screeners are top-notch, especially for stocks, ETFs, mutual funds, options, and fixed income. They have pre-defined screeners like "Cash Cow" and "Warren Buffett Stocks" that can help you find the right investments.

The Idea Builder, launched in August 2020, is a visual and customized experience powered by artificial intelligence. It targets your experience level and interests, combining and streamlining information for you.

The Merrill Edge MarketPro is a downloadable client that gives you trading access, account access, and a personalized dashboard. You'll also get real-time data and news from various sources, making it a valuable tool for traders.

Portfolio Analysis is a must-use feature, regardless of your experience level. The Portfolio Story feature offers a 120-second streaming data report that tells you how your portfolio is performing in real-time.

Merrill Edge's screeners are top-notch, especially for stocks, ETFs, mutual funds, options, and fixed income. They offer various pre-defined screeners like "Cash Cow" or "Warren Buffett Stocks" that can help you find the right investments.

The Options Strategy Builder is a game-changer, allowing you to devise a strategy based on how the underlying stock looks. This feature is a must-try for options traders.

Idea Builder, launched in August 2020, is a visual, customized experience powered by artificial intelligence. It streamlines professional research for you, targeting your experience level and interests.

Merrill Edge MarketPro is the firm's downloadable client, giving you trading access, account access, and a personalized dashboard. It also features third-party research, including real-time data and news from sources like Business Wire and Dow Jones.

Portfolio Analysis is a must-use feature, regardless of your experience level. Portfolio Story provides a 120-second streaming data report that takes real-time data and uses it to tell how your portfolio is performing.

Dynamic Insights adapts to changes in your portfolio in real-time, offering a unique analysis feature that launched in the spring of 2020.

The TradeBar is a handy tool that sits at the bottom of the browsing window, allowing you to place orders for stocks and ETFs quickly and easily.

Merrill Edge offers margin accounts, although its rates aren't the best in the industry.

At under $25,000, the rate is a steep 9.875%. This is something to consider if you're planning to use leverage.

Merrill Edge's margin rates do drop significantly at higher loan amounts, to 5.75% at loans over $10,000,000.

This is a much more reasonable rate, especially for larger investors.

The broker also allows shorting stocks in a margin account, following the normal Reg T requirements.

This means an initial margin requirement of 50% and a maintenance requirement of 30% are in place.

Be aware that Merrill Edge imposes hard-to-borrow fees for some stocks, which can add up quickly.

Merrill Edge is regulated by top-tier US financial authorities, ensuring your investments are protected. The Securities Investor Protection Corporation (SIPC), which protects customer accounts up to $500,000, including a $250,000 limit for cash claims, oversees Merrill Edge.

The Securities and Exchange Commission (SEC) regulates Merrill Edge's investment activities, ensuring they comply with all applicable laws and regulations. This includes strict guidelines for trading, reporting, and disclosure.

FINRA, the Financial Industry Regulatory Authority, also regulates Merrill Edge, overseeing their brokerage activities and enforcing rules for investor protection.

Merrill Edge's user experience is geared towards casual investors who want to keep things simple. The platform is easy to use, especially with the downloadable version that offers news and analysis to enhance your portfolio.

Users who trade on Merrill Edge can expect a good experience, especially with the portfolio analysis tool that helps traders see the bigger picture. This tool is a lifesaver for those who might get lost in the weeds while trading.

Here's a breakdown of Merrill Edge's ratings from various aspects:

Keep in mind that Merrill Edge allows customers to trade options, which carry a high level of risk and may not be suitable for all investors.

Merrill Edge's downloadable platform is a great choice for casual investors who want to stay on top of their portfolio. It offers news and analysis that enhances your portfolio, making it easier to make informed decisions.

Having a clear view of your portfolio is crucial, especially for those who are new to trading. The platform's portfolio analysis tool lets traders see the bigger picture, helping them avoid getting lost in the weeds of trading.

Casual investors will likely have a good experience with Merrill Edge, thanks to its user-friendly interface and helpful tools.

Reviews are a great way to get a sense of what real users think about a platform, and Merrill Edge has a solid reputation. Overall, users gave Merrill Edge a rating of 9/10.

Their usability is a strong point, with an 8/10 rating. This suggests that users find it relatively easy to navigate and use the platform. However, their tools and resources received a slightly lower rating of 7.5/10, indicating some room for improvement.

One thing to note is that Merrill Edge allows customers to trade options, which carries a high level of risk and is not suitable for all investors. This is an important consideration for anyone looking to use the platform.

Here's a breakdown of the ratings:

Merrill Edge's website is user-friendly, with a horizontal menu at the top displaying various categories.

The website features a quote box that produces a drop-down box with vital data for a security when a ticker symbol is typed in.

One notable addition is the "new way to research" feature, which guides the user through graphs and charts to demonstrate a stock's performance against its peers.

However, the charting capabilities are somewhat limited, with graphs that cannot be detached or displayed full screen.

Edge platforms are a type of platform that can be accessed from any device with an internet connection, as seen in the "Cloud Platforms" section, where it's mentioned that cloud platforms can be accessed from anywhere.

They are particularly useful for businesses that need to reach a global audience or have employees working remotely. This was a common challenge for companies like IBM and Microsoft, who needed to provide their employees with access to their platforms from anywhere.

Edge platforms can also be used to create a seamless user experience across different devices, as mentioned in the "Progressive Web Apps" section, where it's explained that progressive web apps can be accessed from any device with a web browser.

This is achieved through the use of APIs and other technologies that allow the platform to communicate with the user's device and adapt to its capabilities. For example, a platform might use a mobile API to provide a better experience on mobile devices.

Edge platforms are often used in conjunction with other types of platforms, such as cloud platforms and progressive web apps, to create a comprehensive platform strategy. This can help businesses to provide a consistent user experience across all of their platforms.

A quote box at the top of the site allows you to type in a ticker symbol and get a drop-down box with vital data for that security.

Merrill Edge has recently added a new feature to its website that guides users through a series of graphs and charts to show how a particular stock is performing against its peers.

A stock's profile page includes option chains, but strategies are missing.

There are several order types available, but only two duration choices: day or GTC for 30 days.

The charting feature is somewhat limited, as a graph cannot be detached or displayed full screen, and there are only 22 technical studies available.