This is not investment advice. The information provided is for educational and informational purposes only and does not constitute a recommendation to buy or sell any financial product.
Merrill Edge is the online brokerage arm of Bank of America. It is best known for the Preferred Rewards programme, which rewards Bank of America banking customers with better brokerage pricing and higher credit card rewards.
Fees
| Fee Type | Cost |
|---|---|
| Stock/ETF commission | $0 |
| Options | $0.65/contract |
| Inactivity fee | $0 |
| Account minimum | $0 |
| Broker-assisted trades | $29.95 |
| Margin rate (up to $25K) | 9.75% |
Merrill Edge's standard pricing is middle-of-the-pack. The real value comes from Preferred Rewards, which boosts credit card rewards, reduces mortgage origination fees, and provides free trades on certain products depending on your tier.
Platform and tools
Merrill Edge's platform is integrated with Bank of America's online banking — you can see your checking, savings, and brokerage accounts on one dashboard. The research is powered by Bank of America Merrill Lynch Global Research, which provides institutional-quality reports available to retail customers.
Stock and fund screeners are solid but not as deep as Schwab or Fidelity. Charting is adequate for buy-and-hold investors but not suitable for active traders. There is no dedicated active trading platform.
Product range
Merrill Edge offers stocks, ETFs, options, mutual funds, bonds, and CDs. Crypto is not available. Fractional shares are not supported. The NTF mutual fund list is limited compared to Schwab.
Regulation and safety
Merrill Edge is regulated by the SEC and FINRA. SIPC coverage protects up to $500,000. Bank of America (NYSE: BAC) is one of the largest banks in the world and provides strong backing. Read the full safety analysis.
Preferred Rewards programme
The main reason to use Merrill Edge is Preferred Rewards. Tiers:
| Tier | Balance Required | Key Benefits |
|---|---|---|
| Gold | $20K (3-mo avg) | 25% credit card bonus, small rate discount |
| Platinum | $50K | 50% credit card bonus, free trades |
| Platinum Honors | $100K | 75% credit card bonus, no fees on select products |
| Diamond | $1M | Highest tier, best rewards |
The 75% boost on Bank of America credit card rewards is substantial: a card earning 1.5% cash back becomes 2.625%. The combined balance across Bank of America banking and Merrill Edge brokerage counts toward the tier.
Pros and cons
Pros: Preferred Rewards programme, Bank of America integration, institutional-quality research, strong banking ecosystem.
Cons: No fractional shares, no dedicated trading platform, limited NTF mutual funds, no crypto, higher-than-average broker-assisted fees.
Is Merrill Edge right for you?
Merrill Edge is the best choice if you are a Bank of America customer with a combined balance over $20,000. The Preferred Rewards benefits outweigh the brokerage's limitations. If you are not a Bank of America customer, Fidelity and Schwab offer better standalone brokerage experiences.
Common questions
Can I open a Merrill Edge account without a Bank of America account? Yes. You do not need a Bank of America account to open Merrill Edge, but you miss out on Preferred Rewards.
Is Merrill Edge good for retirement investing? Yes. Merrill Edge offers traditional, Roth, and rollover IRAs. For Bank of America customers with $100K+ combined balances, the Preferred Rewards Platinum Honors tier adds meaningful value.
Does Merrill Edge have a robo-advisor? Yes. Merrill Guided Investing charges 0.45% annually with a $1,000 minimum. This is higher than Schwab (0%) and Vanguard (0.15%).