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Merrill Edge Investments Review: Features & Integration (BoA)

Choosing the right investment platform is a crucial step towards achieving your financial goals. With numerous options available, finding one that aligns with your needs, experience level, and existing financial relationships can feel overwhelming.

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This review delves into Merrill Edge, the online brokerage platform offered by Merrill, a subsidiary of Bank of America. We’ll explore its core features, investment options, account types, and critically, its seamless integration with Bank of America accounts, a major draw for many existing BofA customers in the United States.

What Exactly is Merrill Edge?

Launched in 2010, Merrill Edge combines the investment expertise of Merrill Lynch (now Merrill) with the banking convenience of Bank of America. It serves as BofA’s primary platform for online investing and trading, catering to a broad spectrum of investors, from beginners opening their first IRA to more experienced traders looking for robust tools and research.

It offers two main service models: Merrill Edge Self-Directed Investing, where you make your own investment decisions, and Merrill Edge Guided Investing, a robo-advisor service that builds and manages a portfolio for you based on your goals and risk tolerance.

Core Features Breakdown

Merrill Edge packs a comprehensive suite of features designed to support various investment strategies.

Investment Options

Clients have access to a wide array of investment vehicles:

  • Stocks: Trade U.S.-listed stocks with $0 online commissions.
  • ETFs (Exchange-Traded Funds): Access a vast selection of ETFs, also with $0 online commissions.
  • Options: Trade options contracts (per-contract fees apply).
  • Mutual Funds: Invest in thousands of mutual funds, including a large selection of No Transaction Fee (NTF) funds.
  • Bonds and Fixed Income: Access government, municipal, and corporate bonds, as well as CDs.

This diverse range ensures that investors can build well-diversified portfolios suited to their individual objectives.

Account Types

Merrill Edge supports a variety of account types to meet different financial planning needs:

  • Taxable Brokerage Accounts: Standard individual and joint investment accounts.
  • Retirement Accounts: Traditional IRAs, Roth IRAs, Rollover IRAs, SEP IRAs, SIMPLE IRAs. These offer tax advantages for long-term savings.
  • Education Savings: 529 College Savings Plans (availability may vary by state).
  • Custodial Accounts: UGMA/UTMA accounts for minors.
  • Small Business Accounts: Options for business owners.

Trading Platforms

Merrill Edge provides platforms suitable for different levels of trading activity:

  • Merrill Edge Website & Mobile App: The standard platform is user-friendly and intuitive, suitable for most investors. It provides portfolio tracking, research access, and trading capabilities on desktop and mobile devices.
  • Merrill Edge MarketPro®: This is a more advanced, customizable platform designed for active traders. It offers real-time data streaming, advanced charting tools, and customizable layouts. Access typically requires meeting certain trading activity or balance thresholds.

Research & Tools

One of Merrill Edge’s strongest points is its access to high-quality research and analytical tools, largely thanks to its BofA connection:

    • BofA Global Research: Access to proprietary research reports and market analysis from Bank of America’s acclaimed analysts.
    • Third-Party Research: Ratings and reports from well-respected providers like Morningstar and CFRA.
    • Stock/ETF Screeners: Tools to filter investments based on specific criteria.

* Idea Builder: Helps investors find investment ideas based on themes or objectives.

  • Educational Resources: A library of articles, videos, and webinars covering investing basics, retirement planning, and market insights.

 

Merrill Edge Guided Investing

For those who prefer a hands-off approach, Merrill Edge Guided Investing offers a robo-advisor service. After answering questions about your financial goals, risk tolerance, and time horizon, it recommends and manages a diversified portfolio of ETFs. There are two options:

  • Guided Investing (Online): Lower minimum investment ($1,000), managed entirely online. Annual advisory fee applies (currently 0.45%).
  • Guided Investing with an Advisor: Higher minimum investment ($20,000), includes access to a human financial advisor. Higher annual advisory fee applies (currently 0.85%).

The Bank of America Integration Advantage

For existing Bank of America customers, the integration with Merrill Edge is perhaps the most compelling feature. This synergy provides several benefits:

  • Unified View: See your BofA checking, savings, credit card, mortgage, and Merrill Edge investment accounts all in one place through the BofA online banking portal or mobile app.
  • Seamless Transfers: Easily move money in real-time between your linked BofA bank accounts and Merrill Edge investment accounts.
  • Bank of America Preferred Rewards Program: This is a significant perk. Your qualifying balances held in Merrill Edge investment accounts count towards your total relationship balance for the Preferred Rewards program. Higher tiers unlock valuable benefits across your BofA and Merrill relationship.

Bank of America Preferred Rewards Tiers (Based on Qualifying Balances)

Tier Qualifying Balance (3-Month Average) Key Benefits Example (Subject to Change)
Gold $20,000 – $49,999 Credit card rewards bonus, savings interest rate booster, reduced Merrill Guided Investing fee.
Platinum $50,000 – $99,999 Higher credit card rewards bonus, higher savings booster, more fee waivers, increased reduction on Merrill Guided Investing fee.
Platinum Honors $100,000 – $999,999 Highest credit card rewards bonus, highest savings booster, many fee waivers (incl. some ATM fees), further reduction on Merrill Guided Investing fee.
Diamond $1,000,000 – $9,999,999 Enhanced benefits, mortgage rate reduction, reduced Merrill Lynch advisory fees.
Diamond Honors $10,000,000+ Highest level of benefits and personalized service.

Note: Always check the official Bank of America Preferred Rewards program details for current requirements and benefits.

Pricing and Fees

Merrill Edge aligns with the industry trend of commission-free trading for certain assets:

  • Stocks & ETFs: $0 online trade commission.
  • Options: $0 commission + $0.65 per contract.
  • Mutual Funds: No commission for No Transaction Fee (NTF) funds; transaction fees may apply to others.
  • Guided Investing: Annual asset-based advisory fee (0.45% or 0.85%).
  • Account Fees: Generally no annual account maintenance fee for Self-Directed accounts. Other fees (e.g., wire transfers, paper statements) may apply but can often be waived, especially for Preferred Rewards members.

Fees Summary

Item Fee (Self-Directed)
Online Stock/ETF Trades $0
Options Trades $0 + $0.65 per contract
NTF Mutual Funds $0 (though fund expense ratios apply)
Broker-Assisted Trades $29.95 (typically)
Account Maintenance $0

Pros and Cons of Merrill Edge

Pros

  • Excellent Bank of America Integration: Seamless view and transfers for BofA customers.
  • Preferred Rewards Benefits: Investment balances boost rewards across banking and investing.
  • $0 Commission Stock/ETF Trades: Competitive pricing for common investments.
  • Strong Research Resources: Access to BofA Global Research and reputable third-party analysis.
  • Wide Range of Account Types: Caters to various savings goals (retirement, education, general investing).
  • Guided Investing Option: Provides a robo-advisor service for those seeking portfolio management.
  • Physical Branch Access: Ability to get support at many Bank of America locations (though investment specialists may require appointments).

Cons

  • Platform Less Advanced for Active Traders: While MarketPro exists, platforms from brokers focused solely on active trading might offer more sophisticated tools or faster execution for hyper-active day traders.
  • Options Pricing: The $0.65 per contract fee is competitive but not the absolute lowest available.
  • International Trading: Limited direct access to trading on foreign exchanges compared to some specialized brokers.
  • Fractional Shares: As of recent updates, Merrill Edge primarily offers fractional shares through its Guided Investing program, not typically for self-directed stock purchases, which some competitors offer.

Customer Service and Support

Merrill Edge offers multiple support channels:

  • Phone Support: Available 24/7 for general inquiries and trading assistance.
  • Online Chat: Available during business hours.
  • Secure Email: For less urgent queries.
  • In-Person Support: Clients can schedule appointments with Merrill Financial Solutions Advisors at many Bank of America financial centers.

The integration with BofA branches provides a level of physical presence that many online-only brokers lack.

Who is Merrill Edge Best For?

Merrill Edge is an exceptionally strong choice for:

  • Existing Bank of America Customers: The integration and Preferred Rewards benefits are major advantages.
  • Investors Seeking Convenience: Managing banking and investing in one place simplifies financial life.
  • Long-Term Investors: Buy-and-hold investors and those prioritizing research will appreciate the $0 commissions and quality resources.
  • Retirement Savers: Offers a full range of IRA options and educational content.
  • Investors Interested in Guided Portfolios: The Guided Investing option offers a competitive robo-advisor service, especially with potential fee reductions via Preferred Rewards.
  • Investors Valuing Research: Access to BofA Global Research is a significant differentiator.

While active traders can use MarketPro, those prioritizing the absolute lowest fees (especially for options) or needing the most cutting-edge trading tools might find more specialized platforms slightly better suited.

Conclusion

Merrill Edge stands out as a robust, well-rounded online brokerage platform, particularly compelling for Bank of America clients due to its seamless integration and the valuable Preferred Rewards program. With $0 commission stock and ETF trades, access to high-quality research, a variety of account types including retirement options like mutual funds, and both self-directed and guided investing options, it caters effectively to a wide range of investors in the United States.

While it might not have the absolute most advanced platform for hyper-active traders or the lowest options fees on the market, its overall package of features, research, convenience, and potential banking rewards makes it a top contender. If you value research, convenience, and potential relationship benefits, Merrill Edge is certainly worth strong consideration.

For those seeking comprehensive information and regulatory details about brokerage firms, consulting resources like the Financial Industry Regulatory Authority (FINRA) can be beneficial. You can find more details in this official Merrill Edge Investments Review source material on their website.