Merrill Edge vs. Robinhood Comparison
Key points:
• Brokerage accounts are offered by both Robinhood and Merrill Edge.
• Advisory accounts are available at both Robinhood and Merrill Edge, although Merrill has more advisory choices.
• Merrill has advisors at select Bank of America financial centers, while Robinhood offers cryptocurrency and futures trading.
Before opening your next investment account, consider both Robinhood and Merrill Edge. Although
these two well-known companies provide many financial services, there are key differences between
them.
Commissions
| Broker Fees |
Stock/ETF
Commission |
Mutual Fund
Commission |
Options
Commission |
Maintenance
Fee |
Annual IRA
Fee |
|
Robinhood
|
$0
|
na
|
$0 per contract
|
$0
|
$0
|
|
Merrill Edge
|
$0
|
$19.99
|
$0.65 per contract
|
$0
|
$0
|
Services
| Broker Review |
Cost |
Investment Products |
Trading Tools |
Customer Service |
Research |
Overall Rating |
|
Robinhood
|
|
|
|
|
|
|
|
Merrill Edge
|
|
|
|
|
|
|
Promotions
Robinhood:
3% deposit match and FREE stock worth up to $200 at Robinhood.
Merrill Edge: Currently, no promotions.
Investing and Trading
With a brokerage account at either Robinhood or Merrill Edge, you can trade various products such as stocks, options, and exchange-traded funds. Only Merrill Edge offers closed-end funds, mutual funds, and bonds, while only Robinhood provides futures and cryptocurrencies.
For investors who want managed help, both firms now have an advisory option. Robinhood Strategies charges 0.25% per year and requires just $50 to get started. Merrill Guided Investing costs 0.45% per year, while customers who want access to an advisor can choose Merrill Guided Investing with Advisor for 0.85% per year. Merrill also has advisors available at select Bank of America locations.
Robinhood provides joint, individual, retirement, and custodial accounts. Merrill Edge offers these plus other types such as 401k plans, 529 plans, business IRAs, and more.
Margin Services
Both firms allow you to use margin trading, which means borrowing money to buy more shares. Merrill Edge also permits margin accounts to sell short, a feature not available at Robinhood.
Long positions on margin have interest rates that vary with the total loan balance. At Robinhood,
the rate starts at 5% and goes down to 3.95%. Gold customers paying $5 per month get the first $1,000 of borrowed money free.
Merrill Edge uses a more complex system. Their margin rate is based on your total household assets with Bank of America, your loan balance, and a base lending rate that resets every week.
Website Trading
Both companies’ websites can be used for managing accounts, charting, and order entry. The Merrill
site provides more detailed investment information and better screeners. Merrill’s order ticket
offers separate options for buying to cover, selling short, trailing orders, and stop orders,
which advanced traders like.
Robinhood offers similar order types but does not include selling short or buying to cover. However,
Robinhood does offer a recurring-investment option for systematic purchases of stocks and ETFs.
Both firms also provide trading platforms that offer more features than the websites. Merrill’s platform, MarketPro, includes an economic calendar, OptionsPlay, Level II quotes, an options calculator, and full-screen charts with many tools.
Robinhood’s platform, called Legend, is not as advanced, though it improves on the website. For example, its charts have more plot styles (10 versus 2), support right-click trading, offer many drawing tools, and have trade buttons in the upper-left corner. However, recurring orders are missing on Legend’s trade ticket.
Mobile Apps
Merrill Edge customers use a mobile app featuring an AI assistant named Erica that can answer some questions. The app displays charts horizontally and includes many tools, such as technical studies like Mass Index, Slow Stochastics, and Williams %R. Options and mutual funds can be traded on the Merrill app, and learning materials are available by tapping the menu (≡) in the upper-left corner.
Robinhood’s app does not offer horizontal charting but does include a few technical studies, such as MACD and Relative Strength Index. Options can be traded on the app, and the strategy builder is a useful feature. The app puts less emphasis on educational content than Merrill’s app, which can be a disadvantage for beginners. On the other hand, equity profiles show analyst recommendations and real-time bid-ask spreads, which are not found on the website.
Supplementary Services
Dividend reinvesting (DRIP) is available at both firms.
Both Merrill Edge and Robinhood offer extended-hours trading. Only Robinhood offers overnight trading in some stocks and ETFs, plus nearly 24/5 trading in futures and 24/7 trading in cryptocurrencies.
Fully-paid stock lending is available only at Robinhood.
Both firms offer IPO trading.
Robinhood provides fractional-share trading for stocks, ETFs, and cryptocurrencies, while Merrill Edge offers whole-dollar investing in mutual funds.
Individual Retirement Accounts (IRAs) can be opened at either firm. Only Merrill Edge offers business IRAs, and only Merrill charges a $49.95 fee for closing an IRA.
Merrill Edge also supports systematic mutual fund purchases.
Winner: Robinhood
Our Recommendations
Active Stock Trading: We suggest Merrill Edge with MarketPro.
Retirement Planning & Long-Term Investing: A financial advisor through Merrill
Guided Investing along with an IRA or other retirement account is a good choice.
But Robinhood also offers a 1% IRA match, with a higher match available through Gold on annual contributions.
Small Investors: Merrill’s robo account requires $1,000 or more, so it may not
work for small accounts. Both firms offer brokerage accounts with no minimum, and with
whole-dollar trading starting at just $1, Robinhood is recommended.
Beginning Investors: Robinhood is a good starting point.
Mutual Funds: Merrill.
Promotions
Robinhood:
3% deposit match and FREE stock worth up to $200 at Robinhood.
Merrill Edge: Currently, no promotions.
Merrill Edge or Robinhood: Verdict
Merrill Edge appears to have the overall advantage for both beginners and advanced traders, while
Robinhood is a great option for fractional-share and crypto trading.
Updated on 3/31/2026.
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.
|