Is Merrill Edge Safe?
Are you worried about the security of Merrill Edge? Do you have questions about whether it’s genuine? If so, you’re on the correct web page. We have done all the required research, and we have several answers for you.
Is Merrill Edge a Scam?
Merrill Edge is located in the United States and is therefore supervised by multiple American securities
agencies. Up first is the Securities and Exchange Commission (SEC). Merrill’s SEC registration
number is 8-7221 for its brokerage services. Its SEC number for advisory work is
801-14235. Because these two registrations include Merrill Lynch operations, and because they stretch back
many years before the firm was purchased by Bank of America, there’s a lot of background in
both filings.
Besides SEC supervision, Merrill Edge is also regulated by FINRA, the Financial Industry Regulatory
Authority. This adds another layer of safety for Merrill Edge clients. Merrill’s FINRA
registration number is 7691. Once again, the history of this registration goes back many decades
(to 1959 to be exact), so there’s a lot of information on Merrill Edge’s BrokerCheck profile. There are currently 1,466 disclosures on the profile, which really isn’t bad given the long history and the fact that Merrill Lynch activities are included.
Clearing Firm
Merrill Edge is self-clearing, meaning the company uses an in-house entity for clearing tasks. This is Merrill Lynch Professional Clearing Corp. It has its own SEC and FINRA registrations. They are 8-33359 and 16139, respectively.
The clearing branch of Merrill Edge has been running since 1985. It is watched by both regulators just like Merrill’s other operations. There are far fewer regulator actions on the clearing firm’s BrokerCheck record (only 56).
Is Merrill Edge FDIC/SIPC Insured?
Beyond the regulatory system surrounding Merrill Edge, there is an additional safeguard: insurance. Every brokerage account at Merrill Edge can receive SIPC protection. The exact amount may depend on various factors, but generally speaking, each customer (not each account) is eligible for $500,000 of coverage, half of which can apply to cash holdings. To get this cash protection, a Merrill Edge account must opt for SIPC coverage because the default arrangement at the firm is an FDIC-sweep program. Typically, uninvested cash is transferred into program banks (Bank of America branches) that provide FDIC insurance. Note that FDIC insurance only applies to uninvested cash that has been moved into these program banks.
Merrill Edge also has an extra policy through Lloyd’s of London that takes effect once SIPC protection is used up. This additional policy includes both cash and securities. There is a $1.9 million limit for cash claims per account, and the total limit for the entire firm is $1 billion.
Merrill Edge BBB Reviews
The Better Business Bureau is a private, nonprofit group that monitors how companies operate and
handle customer issues across North America.
Both Merrill Edge and its parent, Bank of America, have profiles on the BBB site. Merrill Edge’s listing shows a grade of A+. This is the highest possible rating. The BBB’s score is based on
several performance factors, including how long the firm has been in business, how many complaints have been filed with the BBB, the organization’s openness, and more.
Merrill Edge’s BBB page indicates more than 7,000 closed complaints in the last 3 years. These include complaints tied to Bank of America. Examples involve identity theft and Bank of America declining to shut an account.
Merrill Edge has 640 customer reviews on its BBB entry. The average rating is 1.06 out of 5. Although that’s quite low, most of the reviews come from dissatisfied clients on the BBB site.
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Is Merrill Edge Safe Verdict
Alongside Merrill Lynch, Merrill Edge has a solid history in the brokerage field. Its parent, Bank of America, is one of the world’s largest banks with trillions of dollars in total assets. Along with several layers of safeguards, we can say that this brokerage operation is both authentic and reliable. Keep in mind, however, that investing always has risks, so no brokerage is 100% safe.
Merrill Edge Review: Accounts and Assets
A variety of brokerage accounts can be opened at Merrill Edge. We’re talking retirement accounts, 529 plans, small-business accounts, custodial accounts, and more. Through Merrill Guided Investing, there are automated and hybrid accounts. The advisory setup only trades mutual funds and exchange-traded funds. Brokerage accounts offer these plus closed-end funds, option contracts, stocks, and bonds. All trading takes place on U.S. exchanges; there are no global exchanges.
Through Merrill’s affiliate Merrill Lynch, classic wealth-management packages are offered. For hands-on help, there are branch offices, which the hybrid platform at Merrill Guided Investing also provides. Merrill’s advisors can help with various matters, like tax-smart strategies and goal planning. On top of the products already mentioned, full-service customers can get annuities and insurance.
Merrill Edge and Merrill Guided Investing need U.S. residency for account openings. Merrill Lynch does have some foreign branches where non-U.S. residents may set up accounts.
Trading on Margin
Merrill Edge customers, but not Merrill Guided Investing users, can trade in either a cash or margin format. With a margin account, it’s possible to short stocks, use option spreads, and purchase investments with borrowed funds. However, this does come with a fee.
Merrill Edge has a somewhat detailed margin schedule that takes into account a client’s overall assets within the Bank of America network (Merrill is one part of this) plus the loan balance and adds in a Base Lending Rate (BLR), which is reset every Monday.
The framework of margin borrowing and Bank of America assets generally remains the same, though it
can change. Currently, it spans from 8.5% to 3.25%. It requires more than $100k in margin
balances or $100k in Bank of America assets to exceed 8.5%. At this time, the BLR is 4.43%., so the
overall margin span goes from 7.68% to 12.93%.
A brokerage account currently functioning as cash can enable margin on the Merrill website (visit the Forms center under the Help & Settings tab).
Cash Management
The standard brokerage account at Merrill Edge is labeled CMA, which stands for Cash Management Account, highlighting Merrill’s dedication to banking features for investors. Each CMA account can have a checkbook and a Visa debit card, though these are optional. Uninvested cash in a brokerage account is swept to Bank of America, where it has FDIC coverage. This feature can be turned off if preferred.
Naturally, cash withdrawals with a CMA debit card are free at Bank of America ATMs. Merrill Edge doesn’t bill any withdrawal fees at machines run by other banks and even refunds up to $200 annually in domestic ATM fees at non-Bank of America terminals.
Thanks to Merrill’s link with Bank of America, any accounts opened at Bank of America, such as loans and credit cards, will be automatically linked on Merrill’s website.
Computer Trading
Speaking of technology, Merrill Edge offers a reliable site with a wealth of tools that both newcomers and seasoned traders can appreciate. Under the Guidance & Retirement section, we spotted educational materials on retirement prep and defining life goals. There is even an estate-tax calculator and a net-worth planner. Stock pages present moderate details; we’re talking free stock evaluations and earnings history.
For placing trades, the order form supports market, limit, stop, and trailing orders. A strategy builder simplifies option trading. Charts include some tools, though there is no true full-screen option. For that, you have to launch MarketPro.
MarketPro is a browser-based platform; the link is found under the Trade tab in the main menu. Along with full-screen charting, MarketPro offers strong features like Level II quotes, an economic calendar, ESG data, and OptionsPlay, a specialized derivative tool.
Mobile App
Merrill’s solid performance carries over into its mobile application. Due to its connection with Bank of America, there are helpful money-management features, such as a free credit score.
For trading, we encountered the same order form featured on MarketPro. Charts are understandably lighter; nonetheless, there are still useful tools like comparisons and indicators.
Research is also in place. There are heatmaps for multiple instruments on various exchanges. News stories show up, and we located educational write-ups, too. An AI named Erica is a nice addition.
Pricing Schedule
A brokerage account at Merrill Edge does not have a minimum balance requirement, and there are no commissions on most trades. Options carry a per-contract fee of 65¢. Mutual funds with a transaction fee have a short-term redemption charge of $39.95; transaction-fee funds cost $19.95 when traded online. Brokered CDs and Treasuries can be bought or sold for free, while other bonds cost $1 each with a $10 minimum and $250 maximum.
A robo account through Merrill Guided Investing costs 0.45% yearly to maintain; adding a human advisor raises the management fee to 0.85%. The automated plan requires either $1,000 or $50,000, based on the chosen investment strategy. The hybrid option demands $20,000 or $50,000.
Extra Services
Fully-Paid Stock Lending Program: Not provided.
Extended Hours: Merrill Edge users can trade before the market opens and after it closes.
Dividend Reinvestment Plan: Cash payouts can be reinvested through Merrill’s DRIP.
Initial Public Offerings: Not available.
Fractional Shares: Also unavailable.
IRA Lineups: Merrill Edge offers Individual Retirement Accounts (with a $49.95 fee to close an IRA).
Recommendations
Stock and ETF Trading: With MarketPro, a Merrill Edge brokerage account is a good option.
Small Accounts: With a $1,000 minimum or more, a robo account at Merrill isn’t convenient. A standard brokerage account is more feasible.
Long-Term Investors & Retirement Savers: A human financial advisor through Merrill Lynch or Merrill Guided Investing could be very valuable. Self-directed customers have target-date mutual funds and considerable planning materials on the website.
Mutual Funds: Using Merrill Edge’s fund screener, we found 2,556 funds, which is
fairly low. We recommend Firstrade (read review)
instead, which has many more and charges no transaction fees.
Beginners: A managed account at Merrill Guided Investing is a great way to start.
Merrill Edge Review Judgement
Budget-minded traders can find robust resources at Merrill Edge and its related service Merrill Guided Investing.
Updated on 2/27/2025.
Chad Morris is a financial writer with more than 20 years experience
as both an English teacher and an avid trader. When he isn’t writing
expert content for Brokerage-Review.com, Chad can usually be found
managing his portfolio or building a new home computer.
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