Schwab vs. Merrill Edge: Compare Features
Merrill Edge and Schwab are very similar in many categories, but there are in and out investors should know before starting.
Here's a quick comparison between their investing features:
Merrill Edge | Schwab | |
|---|---|---|
Investing Options | Full Access To Almost Any Asset | Full Access To Almost Any Asset |
Investing Types | Stocks, Options, Margin, ETFs, Bonds & CDs, Mutual Funds, Margin
| Stocks, Options, Futures, ETFs, Bonds & Fixed Income, Forex,Mutual Funds, Money Market Funds |
Automated Investing | Yes | Yes |
Paper Trading | No | Yes |
IPO Access | No | Yes |
Dedicated Advisor | Yes | Yes |
Tax Loss Harvesting | No | Yes |
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Self Investing And Fundamental Analysis Options
Schwab is our winner in self-investing, but the difference is insignificant.
On the other hand, Schwab shines with its research tools, which include insights from its team and expert commentary.
Investors can access real-time alerts, stock screeners, and plenty of educational resources to improve their trading strategies. Investors can buy fractional shares, practice with Schwab Paper Money, and participate in IPOs.
Merrill Edge excels in user-friendly tools and seamless integration with Bank of America, making it ideal for investors who value convenience and accessibility.
Its platform is particularly strong in providing comprehensive research and insights, including Morningstar ratings and extensive market analysis.
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Trading Options And Technical Analysis Tools
Schwab is our winner when it comes to technical analysis due to its powerful trading app, thinkorswim.
The Thinkorswim platform by Schwab is designed for active traders, offering detailed trading options and advanced analysis tools.
It provides real-time market data and helps users analyze stocks, options, futures, and forex.
Thinkorswim also has strong charting capabilities, allowing users to create custom charts with various technical indicators.
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.
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Robo Advisor And Automated Investing
There is no clear winner here, as Merrill and Schwab offer great robo-advisor options.
Merrill Edge’s robo-advisor, Merrill Guided Investing, stands out 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.
Schwab’s Intelligent Portfolios offers a flexible robo-advisory experience with no management fees and over 80 low-cost ETFs.
It requires a minimum investment of $5,000 and includes 24/7 live support, automatic rebalancing, and tax-loss harvesting.
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Retirement Accounts
Schwab offers a wide variety of retirement accounts, including traditional, Roth, rollover, SEP, and Simple IRAs.
Additionally, Schwab provides a self-directed retirement brokerage account called Schwab Personal Choice, allowing users more control over their investments.
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, Schwab is generally cheaper.
Merrill and Schwab’s fees have $0 commissions on U.S. stocks, mutual funds, and ETFs.
Schwab | Merrill Edge | |
|---|---|---|
Fees | Up to 0.80%
$0 online commission on U.S. listed stocks, mutual funds and ETFs, options: $0.65 per-contract, Schwab Intelligent Portfolio – 0%, Schwab Intelligent Portfolios Premium – One-time planning fee: $300 + Monthly advisory fee: $30, Schwab Wealth Advisory: up to 0.80% | 0.45% – 0.85%
0.45% for Merrill Robo Advisor (Guided Investing), 0.85% for Investing With An Advisor |
When it comes to Robo Advisory, Schwab is free as long as yo don't need a personal advisor. Merrill fees are fixed and increase if you need personal assistance from a dedicated advisor.
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Cash Management And Savings Rates
Unless you're a BofA customer, Schwab offers better cash management options, especially if you have a high amount of uninvested cash.
Schwab | Merrill Edge | |
|---|---|---|
Savings APY | 0.05% | 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. |
Their Schwab Bank Investor Checking account has no monthly fees, unlimited ATM fee rebates, and features like bill pay and mobile check deposits, although interest rates on cash are low.
However, interest on savings/uninvested cash is not competitive.
Similarly, 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 disappointing 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
Both Schwab and Merrill offer good plans for wealth management.
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.
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.
Schwab’s Wealth Advisory service offers personalized investment strategies created by certified financial planners, focusing on long-term goals and customized portfolio management.
For clients with larger portfolios, Schwab Private Client Services and Schwab Private Wealth Services provide dedicated access to a financial advisor, allowing for tailored advice and planning that meets individual financial needs.
Bottom Line
Overall, Schwab may be a better option for investors and traders.
However, the differences are not significant, while Merrill offers most of the options investors can get with Schwab and can be attractive if you're a BofA customer.
