Merrill Edge review

Is Merrill Edge Safe and Legitimate Brokerage Firm? Is Merrill Edge/Lynch a Scam? Are Your Money, Assets and Investments Insured?

Is Merrill Edge Safe?

We are often being asked these questions: Is Merrill Edge safe to use, to keep money, assets and investments? Is Merrill Edge/Lynch account SIPC/FDIC insured? The short answer - it's a legitimate online broker created by Merrill Lynch. However, Merrill Lynch was saved from bankruptcy by Bank of America during financial crisis of 2008. The company has some issues - you can read our review and user comments in 2015 Merrill Edge Review.

Is Merrill Edge Insured And Regulated?

Merrill Edge/Lynch is a member of FINRA/SIPC. FINRA (Financial Industry Regulatory Authority - is the largest independent regulator for all securities firms doing business in the United States. Its chief role is to protect investors by maintaining the fairness of the U.S. capital markets.

SIPC (The Securities Investor Protection Corporation - either acts as trustee or works with an independent court-appointed trustee in a missing asset case to recover funds. The statute that created SIPC provides that customers of a failed brokerage firm receive all non-negotiable securities that are already registered in their names or in the process of being registered. SIPC is an important part of the overall system of investor protection in the United States. While a number of federal, self-regulatory and state securities agencies deal with cases of investment fraud, SIPC's focus is both different and narrow: restoring funds to investors with assets in the hands of bankrupt and otherwise financially troubled brokerage firms.

It means that Merrill Edge brokerage accounts are insured in case of brokerage firm failure, very similarly to the way bank accounts are insured by the FDIC. The insurance is limited to $500,000 per customer, including up to $250,000 for cash.

Merrill Edge BBB (Better Business Bureau) Rating: F

Total Closed Complaints - 2: Problems with Product/Service - 2, Advertising/Sales Issues - 0, Billing/Collection Issues - 0, Delivery Issues - 0, Guarantee / Warranty Issues - 0.

Read full Merrill Edge Review.

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Updated on 7/23/2015.

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