Is Merrill Edge Safe?
Are you worried about how safe Merrill Edge is? Do you want to know if it is a real company? If so, you are in the right place. We did the research, and we have some answers for you.
Is Merrill Edge a Scam?
Merrill Edge is based in the United States and is watched by several U.S. securities regulators. The main one is the Securities and Exchange Commission (SEC). Merrill’s SEC registration number for its brokerage business is 8-7221. Its SEC number for investment-advisory services is 801-14235. These two registrations cover Merrill Lynch operations and go back many years before Bank of America bought the firm, so there is a long history with both registrations.
Besides the SEC, Merrill Edge is also regulated by FINRA, the Financial Industry Regulatory Authority. This gives Merrill Edge customers another layer of protection. Merrill’s FINRA registration number is 7691. This registration goes back to 1959, so there is a lot of information on Merrill Edge’s BrokerCheck profile. There are currently 1,466 disclosures, which is not a lot given the long history and the fact that Merrill Lynch is included.
Clearing Firm
Merrill Edge clears its own trades, which means it uses its own company for clearing. This company is Merrill Lynch Professional Clearing Corp. It has its own SEC and FINRA registrations: 8-33359 and 16139.
The clearing company has been in business since 1985. Its work is also watched by both the SEC and FINRA, just like the rest of Merrill. There are far fewer regulatory actions on the clearing firm’s BrokerCheck profile (just 56).
Is Merrill Edge FDIC/SIPC Insured?
Besides all the rules Merrill Edge must follow, there is also insurance protection. Every Merrill Edge brokerage account is eligible for SIPC insurance. Usually, each customer (not each account) gets $500,000 of insurance, with half of that for cash. To get SIPC insurance on cash, you have to request it, because the default at Merrill Edge is an FDIC-sweep program. Normally, uninvested cash is moved to program banks (Bank of America banks) that are covered by FDIC insurance. Remember, FDIC insurance only covers uninvested cash that has been moved to these banks.
Merrill Edge also has extra insurance through Lloyd’s of London that starts if SIPC insurance runs out. This policy covers both cash and investments. There is an account limit of $1.9 million for cash claims and a total firm-wide limit of $1 billion.
Merrill Edge BBB Reviews
The Better Business Bureau (BBB) is a private group that tracks how companies treat customers in North America.
Both Merrill Edge and its parent company, Bank of America, have profiles on the BBB’s website. Merrill Edge’s profile shows an A+ grade, which is the best possible. The BBB gives this grade based on things like how long the company has been in business, the number of complaints, how open the business is, and more.
Merrill Edge’s BBB profile shows over 7,000 closed complaints in the last 3 years. Some of these are for Bank of America. Complaints include things like identity theft and Bank of America not closing an account when asked.
There are 640 customer reviews on Merrill Edge’s BBB profile, with an average rating of 1.06 out of 5. This is low, but most reviews on the BBB are from unhappy customers.
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Is Merrill Edge Safe Verdict
Merrill Edge, along with Merrill Lynch, has a strong history in the brokerage business. Its parent company, Bank of America, is one of the largest banks in the world with trillions in client assets. With many layers of protection, we can say that Merrill Edge is a real and trustworthy firm. But keep in mind, all investing has risks, so no brokerage can be called completely safe.
Merrill Edge Review: Accounts and Assets
You can open many types of brokerage accounts at Merrill Edge. These include retirement accounts, 529 college savings plans, small-business accounts, custodial accounts, and more. With Merrill Guided Investing, there are robo and mixed human/automated accounts. The advisory program only trades mutual funds and ETFs. Brokerage accounts let you trade those, plus closed-end funds, options, stocks, and bonds. All trading is on U.S. exchanges; you can’t trade on foreign exchanges.
With Merrill Lynch, you can open regular wealth-management accounts. For personal help, you can visit branch locations, which are also part of the hybrid program through Merrill Guided Investing. Merrill’s financial advisors can help with things like tax strategies and setting financial goals. Full-service advisory clients also get access to annuities and insurance products.
You must be a U.S. resident to open an account at Merrill Edge or Merrill Guided Investing. Merrill Lynch has some locations where non-U.S. residents can open accounts.
Trading on Margin
Merrill Edge customers—but not Merrill Guided Investing clients—can trade with either a cash or margin account. With a margin account, you can short stocks, use options spreads, and buy securities with borrowed money. There is a cost for this.
Merrill Edge’s margin rates depend on your total assets at Bank of America (including Merrill) and your loan balance. They also use something called a Base Lending Rate (BLR), which changes every Monday.
The margin rates and asset requirements can change, but right now, rates range from 8.5% to 3.25%. To get the lowest rate, you need more than $100,000 in margin balances or assets at Bank of America. The BLR right now is 4.43%, so the total margin range is 7.68% to 12.93%.
You can upgrade a cash trading account to margin on Merrill’s website (just go to the Forms center under the Help & Settings tab).
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Cash Management
The basic brokerage account at Merrill Edge is called a CMA, which stands for Cash Management Account. This shows how serious Merrill is about banking features for investors. Every CMA account lets you add a checkbook and a Visa debit card if you want, but you don’t have to. Any cash not invested in your brokerage account is automatically moved to Bank of America, where it gets FDIC insurance. You can turn this feature off if you prefer.
If you use your CMA debit card at Bank of America ATMs, withdrawals are free. Merrill Edge also does not charge for withdrawals at other banks’ ATMs and even refunds up to $200 per year in ATM fees you pay at non-Bank of America ATMs in the U.S.
Because Merrill is connected to Bank of America, any accounts you open at Bank of America, like loans or credit cards, will be linked on Merrill’s platform.
Computer Trading
Merrill Edge has a strong website with lots of tools for both beginners and advanced traders. Under the Guidance & Retirement section, you’ll find helpful articles about retirement planning and setting your life goals. There’s also an estate-tax calculator and a net-worth estimator. Stock profiles include free stock reports and earnings histories.
For trading, the order ticket has market, limit, stop, and trailing orders. There is a strategy builder that helps you with options trades. The charting tools are good, but there is no full-screen mode on the main site; for that, you need to use MarketPro.
MarketPro is a web platform you can launch from the Trade tab in the menu. It has full-screen charting and many other features, including Level II quotes, an economic calendar, ESG details, and OptionsPlay for options trading.
Mobile App
Merrill’s good features also show up in the mobile app. Because of its relationship with Bank of America, there are extra personal finance tools, like a free credit score.
For trading and investing, the same order ticket from MarketPro is on the app. The charting isn’t as advanced as on the web, but there are still good tools, including chart comparisons and indicators.
You also get access to research. There are heatmaps for many stocks on different exchanges. You’ll see news articles and educational materials. There is also an AI assistant named Erica.
Pricing Schedule
A Merrill Edge brokerage account has no minimum balance, and most trades are commission-free. Options trades cost 65¢ per contract. Some mutual funds have a $39.95 short-term redemption fee, and trading these funds costs $19.95 online. Brokered CDs and Treasury securities are free to trade. Other bonds cost $1 per trade, with a $10 minimum and a $250 maximum.
A robo account with Merrill Guided Investing has a 0.45% yearly fee. If you want a human advisor, the fee goes up to 0.85% per year. The regular automated program requires at least $1,000 or $50,000 to start, depending on the strategy. The hybrid option with a human advisor needs $20,000 or $50,000 to begin.
Closing a Merrill Edge account costs $49.95.
Extra Services
Fully-Paid Stock Lending Program: Not available.
Extended Hours: Merrill Edge lets you trade before the market opens and after it closes.
Dividend Reinvestment Plan: Merrill’s DRIP lets you reinvest cash distributions.
Initial Public Offerings: Not available.
Fractional Shares: Not available.
IRA Lineups: Merrill Edge offers Individual Retirement Accounts (closing one costs $49.95).
Recommendations
Stock and ETF Trading: MarketPro makes a Merrill Edge brokerage account a good choice.
Small Accounts: The robo account needs at least $1,000 (or more), so it’s not for small investors. A regular taxable account works.
Long-Term Investors & Retirement Savers: A human financial advisor from Merrill Lynch or Merrill Guided Investing can be very helpful. Self-directed investors have access to lifecycle mutual funds and a lot of planning resources online.
Mutual Funds: Merrill Edge’s screener shows 2,556 funds, which is not many. We recommend Firstrade (read review) for more options and no transaction fees.
Beginners: A managed account with Merrill Guided Investing is a great way to start.
Merrill Edge Review Judgement
Investors who are careful with spending will find good options at Merrill Edge and Merrill Guided Investing.
Updated on 6/20/2025.
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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