Merrill Edge Broker Review

Trade Experience

Trading on Merrill Edge's platforms can be simple and intuitive. MarketPro provides a lot of customization options including color schemes and font sizes, layouts, hotkeys, alerts, default trade settings, and alerts. MarketPro users can click the right-click on the chart to choose "buy" or the "sell" option at the current price. Mobile and web users can click on the "Trade” icon in the chart header. This prefills their order ticket with symbol information. Overall, the MarketPro chart trading interface was less intuitive than other platforms. It does the job, even for retail traders with more complex needs.

MarketPro and mobile offer streaming real-time quotes that you can view on multiple devices simultaneously. You can enter multiple orders at once or stage them for later entry.

A wide range of offerings

Merrill Edge customers have the ability to trade stocks, ETFs and options. App traders can only trade stocks, ETFs and options. Merrill Edge doesn't offer futures, options or forex trading. Notable is the fact that Merrill Edge does not support fractional trading. A live broker can help with some international transactions. Merrill Edge allows investors to trade the following on MarketPro and the website:

• Stocks short and long. Merrill Edge's stock borrowing process is fully automated for all short sales locates. It can locate stocks that are available immediately if inventory is available.

• OTCBB (penny stock) OTCBB transactions that are based on market capital may be restricted by certain restrictions.

• Mutual funds (approximately 3,100, no-load, and no transaction fees).

• Bonds: corporate, municipal, treasury, CDs.

• There are two options: single leg or two-leg. Plans to add four-leg strategies by early 2021.

• Robo-advisory integrated in the website and mobile application

• International trades via a live broker.

Types of Order

Merrill Edge supports basic orders across all platforms (e.g. market, limit and stop limit, trailing stops), but doesn't provide advanced conditional orders for active traders. If you have been investing in stocks for a long time, you can select the tax lot at closing. Or you can make an account-wide default to choose the tax lot (such as average cost or last-in-first out). ).

Prices

Merrill Edge is not the only broker that has shifted to trading ETFs and stocks without commissions. In October 2019, it moved to $0 online stock trades and ETF trades. Its fees are generally in line with industry standards.

• Online equity, ETF and OTCBB trades are free of charge.

• Options trades are not subject to a per-leg commission. The per-contract commission is $0.65

• Orders for 50 options contracts cost $32.50

• Covered call trades of 500 shares and five contracts cost $3.25

• For $19.95, mutual fund trades with funds not covered by the No Transaction Fee Program are possible.

• Fixed income trades for secondary bonds are $1 per bond. There is no charge for new bonds or Treasuries.

• Merrill has stopped publishing its margin interest figures. For more information, customers are advised to contact a representative.

• There are no fees for inactivity, receiving wires or sending checks. Paper statements and trade confirmations are free.

• The cost of sending a wire is $24.95 domestically and internationally

• Transferring an account completely out of your bank account is subject to a $49.95 charge There is no fee for partial transfers.

• For retirement accounts, the account closure fee is $49.95

• Broker-assisted trades cost $29.95 per trade

How this broker makes money for you and from you

It's becoming less common for brokerages to charge commissions in order to stay in business. These are the hidden ways Merrill Edge makes money for you and for you.

• Interest on cash -Merrill Edge earns money by the difference between what you pay and what you can earn on your cash balances. For your cash, you can choose to open a bank deposit or money market account. The interest rate earned on your cash is automatically swept to at least half the Federal Funds rate. You'll only earn 0.01% on cash balances if you don't make a choice.

• Stock Loan Program Merrill Edge makes money by lending stocks to your account for short-term sales. This revenue is not shared with you.

• Order flow payment:Merrill Edge doesn't accept payments for order flow (PFOF), from third-party market players.

• Price Improvement Merrill Edge's smart ordering router monitors trade executions to ensure quality. On average, customers achieve a price increase of $0.0246 per share for orders over 1000 shares. Options have a net price increase of $0.065.

• Portfolio margining Merrill Edge doesn't offer portfolio margining. However, it can reduce the amount of margin you require based on your overall risk. Portfolio margining is best for customers who trade derivatives to offset their equity position risk.

Stock Screener

Merrill Edge offers a stock screener on its "Research/Stocks” page. There are 29 prebuilt screeners, such as "Warren Buffett Stocks", and "Cash Cows", or you can create your own. You can use metrics like price/sector/industry yield, dividend yield, P/E, market cap and institutional ownership. Recognia provides technical screeners. You can save any screener for later use.

ETF Screener

Two proprietary ETF screeners are available on the "Research/ETFs” page. You can search for product types, underlying investments type, Morningstar rating and leverage/inverse. Merrill Edge Select ETFs provides a simplified screening tool that includes most criteria chosen by Investment Management & Guidance Group at Merrill Lynch. To view matching funds, you can choose between Domestic Equity, International Equity, Taxable or Non-Taxable Fixed income, and Miscellaneous Fixed Income.

Mutual Fund Screener

The "Research/Mutual Funds” page provides easy-to-use screeners as well as information about available funds. Funds that do not have a transaction fee (NTF), are clearly identified as such. Screeners also include Morningstar ratings and Lipper ratings. The Fund Story was introduced in 2019 and allows you to quickly evaluate mutual funds or ETFs. It includes holdings, costs, ratings, and ratings.

Option Screener

You can filter the "Research/Options” page by security fundamentals or basic options features. Or you can use more advanced criteria such as option value and volatility. The options strategy builder can help you find strategies that meet your risk tolerance, outlook, goals, and symbols in your portfolio or watchlists. Merrill Edge's options chains allow you to search for specific optionsable securities.

Fixed Income Screener

Recent enhancements to the "Research/Fixed income" page include a screener that allows you to filter bonds by type and industry. You can also filter yield, yield, price, yield, maturity date, price and yield. Call info and coupon rates are also available. Merrill Edge Select Funds screens five types of funds: "Domestic Equity", International Equity", Taxable Fixed Income", Non-Taxable fixed income", and International Fixed Income. Although the interface is not as intuitive as some Merrill Edge screeners, it does the job.

Calculators and Tools

Merrill Edge has more than 24 calculators and tools for personal finance, retirement planning, college planning and investing. You can use the "Roth IRA Conversion Calculator", the "Asset Allocator", the "Portfolio Xray" and "Estate Tax Calculator".

Trade Idea Generator

In August 2020, Merrill Edge introduced Idea Builder. You can search for investment opportunities based on ideas, not traditional metrics such as performance, sector, or individual company. There are many options available, including "Target Date Funds", Big Data", "Millennials + Gen Z", Warren Buffett Stocks" and "Climate Change Vulnerability". Merrill Edge has had the underlying research for many years. Idea Builder brings it together into an interactive and personal experience.

News

Merrill Edge offers news from over 30 sources including Associated Press and BBC Newsfile, Boston Globe. Briefing.com. Canada Newswire. Dow Jones, The Economist. Globe Newswire. Information Week. Investor's Business Daily. Marketwired. The New York Times. Wall Street Journal. Xinhua News Agency. Filter the news stream using watchlists, holdings, and your preferred news outlets.

Research by a Third Party

Merrill Edge offers a searchable database that allows you to access six months worth of analyst reports covering approximately 1,500 equities. Municipals Weekly is available to bond investors. The quarterly Fixed Income Digest is also available. Stock Story features provide information on individual stocks. It pulls data from many sources. Stock Story and Stock Story place a strong emphasis on impact investing. Fund Story provides a similar overview of mutual funds.

Charting

Merrill Edge MarketPro offers full customization and charting capabilities, as well as streaming real-time data. You can choose from line, OHLC and mountain charts as well as candlestick and tick-based charting intervals. More than 70 technical studies are available, each with its own study parameters. You also have access to market depth data (Level 2, open book, total view and ARCA). Although the web and mobile platforms lack charting capabilities, they offer enough features to allow casual long-term investors to trade while on the move.

Cash Management

Merrill Edge lets you enroll in a cash sweep program, where your cash is automatically transferred to a money market fund. You'll only earn 0.01% if you choose not to enroll.

Fractional Dividend Reinvestment Plan - DRIP

Merrill Edge clients have the option to enroll in dividend-paying stocks through a DRIP program. However, the broker does not offer fractional shares.

SRI/ESG Research Amenities

Merrill Edge, as mentioned above, makes it simple for investors to assess their portfolios from a socially responsible investment (SRI) perspective. Customers have access to over 20,000 ESG ratings, reports, and sector organizational displays from every ESG leader in the investing universe. The MSCI ESG scores are displayed on stock pages. ESG ratings can be viewed for portfolios as well as ratings for individual stocks or funds.

Portfolio Analysis

Portfolio analysis by Merrill Edge is excellent. Portfolio reports and analysis can be accessed on an immediate basis. Portfolio Story is a proprietary tool which shows a comprehensive breakdown of your portfolio by sector and holdings, as well as performance, analyst ratings and MSCI ESG scores. This tool is a great piece of portfolio analysis technology that should prove to be very useful for new investors. The Holdings view by Product Class allows you to isolate the performance of your option portfolio.

Morningstar's Portfolio Xray is available on the website. It shows you how your holdings compare across different regions and whether there are overlaps. It also shows how your investments are spread across 11 sectors. And it explains how your holdings are diversified across asset classes. MarketPro offers a customizable portfolio analysis tool.

Dynamic Insights was launched in 2020 and provides AI-driven insights on your accounts, holdings and current market conditions. These reports are updated in real time to reflect market and portfolio changes.

All information is updated in real time, including balances, buying power and margin information. There are still some holes in the portfolio analysis tools despite their overall strength. The platforms don't include any tools to help you determine the tax impact of planned trades. They also do not have a trading journal. However, you can attach notes or watchlists to symbol symbols.

Education

Merrill Edge's Investor Education Center opens with the question "How would you like to learn?" You can choose a level of investing experience (beginner to intermediate or advanced), or a topic such as investing & markets and stocks. You can then choose your preferred learning format: videos & webinars or courses.

Merrill Edge Investing Classroom is also available, powered by Morningstar. A series of courses covers a variety of investment topics, from basics to more advanced strategies. Examples of courses include "Modern Portfolio Theory", 20 Stock-Investing Tips, and "Using Morningstar’s Ratings for Stocks".

Customer Service

• Phone line available 24/7

• Chat online

• FAQs are primarily concerned with trading-related information

• A live broker can be contacted (though there is an additional charge for trades made via the broker), as well as a financial advisor.

• Accounts cannot be opened by non-U.S. citizens

Merrill Edge offers technical support and assistance 24/7 via its phone number. The automated menu will prompt you to dial before routing your call to the right person. Merrill Financial Solutions Advisors can be found at Bank of America branches across the country. You can also contact them via telephone. Erica(r), Bank of America’s AI-Driven Virtual Financial Assistant is now integrated. This integration should allow users to better use Merrill's vast array of products and services.

Reliability and Security

• Mobile devices can be identified by biometrics (fingerprint scanner, face recognition)

• Soft token to log in and high-risk trade authorization via text, phone and email

• For high-risk trade authorization, a device token can be obtained through the SafePass card

• Excess Securities Investor Protection Corporation insurance offered by Lloyd's of London. The aggregate loss limit is $1 billion

• There were no significant breaches.

• Merrill Edge reports that there were no platform outages in the past year. The report also states that Bank of America has not suffered any material losses, other consequences, or technology failures, in the past four years.

• Customers who are interested in cyber risk information can consult the Bank of America Corporation's latest Annual Report on Form 10K, which was filed with the Securities and Exchange Commission.

• Merrill Edge's Fraud Protection Guarantee will cover you for any "quantifiable financial losses" that result from unauthorized third party activity.

Transparency

The pricing page of Merrill Edge details self-directed trading fees, commissions, and options. It is broken down by stocks, ETFs, mutual funds, fixed income & bonds. The company has stopped publishing margin interest figures. Customers will need to speak with a representative. Below are additional fees and services according to account type (investing or retirement, education).

There are many account types available

Merrill Edge offers all the most commonly used accounts.

• Taxable for both individuals and jointly

• Custodial (UGMA/UTMA).

• Traditional individual retirement accounts (IRAs).

• Roth IRAs

• 529 Plans for College Savings

• Plans for small businesses that offer 401(k) plans

• Simplified employee pension (SEP) IRAs

• SIMPLE IRAs

• Individual 401(k)s

• HSA (Health Savings Accounts)

Merrill Edge can help you find the right account for you by helping you clarify the purpose of each account.

Final Verdict

Merrill Edge is a great choice for long-term investors. This is especially true if you already have an account at Bank of America. You can benefit from having both investment and deposit accounts under one roof with the Preferred Rewards program. Merrill Edge provides high-quality third-party and proprietary research, a product range that should appeal to most investors and helpful customer service.

Merrill Edge is not suited for active traders. Merrill Edge doesn't offer advanced order types. You can't backtest and automate strategies. There's also no way to trade as quickly as active traders would like. Active traders may find the limited investment options a problem. They might want to have access to forex, futures options, forex and cryptocurrencies. Merrill Edge is a solid choice for both a brokerage and trading platform if you don't require advanced platform capabilities or the product lineup suits your needs.