Merrill Edge vs Interactive Brokers: Compare Features
Interactive Brokers | Merrill Edge | |
|---|---|---|
Investing Options | Full Access To Almost Any Asset | Full Access To Almost Any Asset |
Investing Types | Stocks, Options, Futures, ETFs, Crypto, Bonds & CDs, Margin, Mutual Funds, Hedge funds, Forex, Commodities | Stocks, Options, Margin, ETFs, Bonds & CDs, Mutual Funds, Margin |
Automated Investing | Yes | Yes |
Paper Trading | Yes | No |
IPO Access | No | No |
Dedicated Advisor | No | Yes |
In contrast, IBKR excels in catering to international investors and advanced traders with its powerful tools and extensive market access.
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Self Investing And Fundamental Analysis Options
While Merrill is a good competitor, IBKR is our winner when it comes to investing and analysis options as it offers a wide range of investing features and research options.
Merrill Edge excels in user-friendly tools for investors and traders. You can get insightful data on almost every tradeable asset:
Its platform is particularly strong in providing comprehensive research and insights, including Morningstar ratings and extensive market analysis.
However, Merrill Edge falls short in the range of available assets, as it does not offer access to international markets, cryptocurrencies, or futures, limiting diversification options.
On the other hand, IBKR is a powerhouse for both new and experienced investors. Investors can trade stocks, options, futures, forex, bonds, ETFs, and mutual funds and access global markets in over 150 countries.
IBKR also provides a vast selection of global markets and asset classes, offering unmatched access for those interested in international investing.
Furthermore, IBKR’s research tools, including the IBKR Global Analyst and PortfolioAnalyst, allow for deep dives into financial data, which is invaluable for meticulous fundamental analysis.
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Trading Options And Technical Analysis Tools
Interactive Brokers is our winner when it comes to trading options and tools for traders.
IBKR stands out with its Trader Workstation (TWS), which is designed for the advanced trader. Hundreds of technical indicators, including moving averages, Bollinger Bands, RSI, MACD, and more, are available, enabling traders to conduct in-depth analyses of market trends.
The platform also supports advanced charting features like backtesting, which allows traders to test their strategies against historical data to evaluate their effectiveness.
Additionally, TWS offers real-time data feeds and pattern recognition tools that can automatically detect chart patterns like head and shoulders, triangles, and trendlines, helping traders identify potential trading opportunities.
In contrast, Merrill Edge excels in providing a user-friendly platform with strong technical analysis tools that are accessible even to novice traders.
Its Market Pro platform is particularly well-regarded for advanced charting capabilities, offering over 100 technical indicators and 20+ drawing tools.
Merrill Edge also integrates insights directly into its charts, making it easier for traders to understand market trends and technical events.
The platform’s simplicity and ease of use make it an attractive choice for those who appreciate a straightforward trading experience. You can set alerts based on many pricing changes and other indicators:
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Robo Advisor And Automated Investing
IBKR’s automated investing service, Interactive Advisors, caters to investors who desire more customization and control, even within a robo-advisor framework.
Interactive Advisors offers a variety of portfolios that are color-coded by risk level and investment style, allowing investors to choose from a wide range of strategies, including socially responsible and income-generating portfolios.
Merrill Edge’s robo-advisor, Merrill Guided Investing, is a standout for those who value personalized, hands-off investing with professional oversight.
It offers tailored portfolios managed and rebalanced by Merrill’s team, providing a blend of automated investing with human insight.
The integration with Bank of America enhances the user experience, particularly for clients who are already part of the BoA ecosystem, allowing seamless movement of funds and access to Preferred Rewards.
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Retirement Accounts
Interactive Brokers (IBKR) offers a variety of Individual Retirement Account (IRA) types, including Traditional, Roth, SEP, SIMPLE, and Inherited IRAs. These accounts are available in either cash or margin formats.
The margin IRA allows for more flexible trading, including multi-currency products, though it comes with limitations such as no cash borrowing, no cross-margining, and significantly higher margin requirements for futures trading compared to non-IRA accounts.
Merrill Edge offers traditional and Roth IRAs, as well as rollover and inherited IRAs. The platform’s intuitive design, along with access to professional advice through Merrill’s advisory services, makes it ideal for those who prefer a guided approach to retirement planning.
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Fees
When it comes to fees, Interactive Broker is our winner.
Merrill Edge offers commission-free trading on most stocks and ETFs and low fees on other investment options.
However, IBKR offers ultra-low commissions on trades, especially for high-volume traders, and provides access to global markets with competitive pricing on international trades. While IBKR's fees can be more complex, they are more affordable than Merrill Edge.
Merrill Edge | Interactive Broker | |
|---|---|---|
Fees | 0.45% – 0.85%
0.45% for Merrill Robo Advisor (Guided Investing), 0.85% for Investing With An Advisor | 0% – 0.75%
$0 online commission on U.S. listed stocks and ETFs, Options: $0.15 – $0.65 per-contract, Futures: $0.25 – $0.85 per-contract. For Interactive Advisors: asset-based management fees of 0.10% to 0.75% |
When it comes to Robo Advisory, it depends.
The Interactive Brokers fee depends on the chosen portfolio and can be anywhere between 0.10% to 0.75%.
Merrill fees are fixed and increase if you need personal assistance from a dedicated advisor.
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Cash Management And Savings Rates
IBKR is our winner when it comes to banking options. Only IBKR offers cash management, and its interest rate on Univested cash is higher.
Merrill Cash Account | IB Universal Account | |
|---|---|---|
Savings APY | 0.01 – 4.18%
0.01% interest on uninvested USD for accounts up to $100,000, 3.67% interest on uninvested USD for accounts over $100,000, 4.18% interest on uninvested USD for accounts over for eligible accounts enrolled in the following investment advisory programs: (1) Assigned to eligible accounts enrolled in the following investment advisory programs: (1) the Merrill Lynch Investment Advisory Program, (2) the Merrill Lynch Strategic Portfolio Advisor Service; (3) the Merrill Lynch Managed Account Service; (4) the BlackRock Private Investors Service; (5) the Merrill Guided Investing Program (6) the Merrill Guided Investing with Advisor Program; and (7) the Merrill Edge Advisory Account program. | 3.83%
There will be no interest paid on the first USD 10,000 of cash. Accounts with NAV less than 100k earn a proportional rate |
IBKR’s Universal Account offers a more investment-focused approach with its cash management features.
The account offers highly competitive interest rates on cash balances, but it requires a minimum of $10,000 to earn the highest rates. Features also include mobile check deposit, direct deposit, and the ability to pay bills directly from the account.
Merrill Edge doesn't offer a stand alone checking account. Instead, existing BofA customers benefit significantly from its integration with Bank of America.
Also, the cash account is disappointed as you are eligible for the high interest only if you maintain at least $100K in your account.
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Wealth Management Options
Merrill is our winner when it comes to wealth management, as IBKR doesn't offer a personalized wealth management services.
Merrill Wealth Management provides personalized services designed for clients with specific financial goals, offering the opportunity to collaborate closely with a dedicated advisor.
Typically, clients need a minimum of $250,000 in investable assets to access these services. With this threshold, they can explore a diverse range of investment options, including stocks, ETFs, mutual funds, options, and bonds, all expertly managed by Merrill’s experienced team.
Additionally, clients benefit from Bank of America’s premier research and insights, ensuring their investment strategies are informed by expert analysis and up-to-date market trends.
Bottom Line
Merrill Edge stands out for its user-friendly interface, strong integration with Bank of America and wealth management services.
On the other hand, IBKR shines with its extensive global market access, low-cost trading, and advanced tools for sophisticated investors, particularly those interested in self-directed investing and complex trading strategies.
Interactive Brokers vs. Other Trading Platforms
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How Merrill Edge Compares to Other Online Brokers
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Fidelity has more investing options, cheaper robo-advisor, and more banking options. Merrill is better for Bank of America customers.
Schwab is our winner for investors and traders. However, the differences between brokerages are not significant. Here's our comparison:
