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Merrill Edge vs Charles Schwab in 2026
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Merrill Edge vs. Schwab
Highlights:
• Many investment services are available through Merrill Edge and Charles Schwab.
• Besides brokerage accounts, both firms offer financial planning and advisory accounts.
• Only Schwab offers trading in futures and forex.
Are you thinking about opening a brokerage account? If so, take a look at Charles Schwab and Merrill Edge. These two financial powerhouses offer brokerage accounts and a lot more.
Commissions
| Broker Fees |
Stock/ETF
Commission |
Mutual Fund
Commission |
Options
Commission |
Maintenance
Fee |
Annual IRA
Fee |
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Charles Schwab
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$0
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$49.95 ($0 to sell)
|
$0.65 per contract
|
$0
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$0
|
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Merrill Edge
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$0
|
$19.99
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$0.65 per contract
|
$0
|
$0
|
Services
Promotions
Charles Schwab: $0 commissions + ACAT rebate + satisfaction guarantee at Charles Schwab.
Merrill Edge: Get $0 stock commissions at Merrill Edge.
Available Assets
Schwab offers self-directed trading in the following investment products:
• Stocks
• Options
• Exchange Traded Funds
• Closed End Funds
• Mutual Funds
• Bonds
• Futures
• Forex
• Real Estate Investment Trusts
• American Depository Receipts
Schwab’s stock category includes both OTC securities and foreign equities.
Merrill Edge shortens the list a bit; futures, forex, and foreign stocks are missing. Everything else on Schwab’s list is still available.
Then there is investment advice. Both firms offer managed accounts. Robo and full-service accounts are available, along with one-on-one financial guidance that can be obtained at a local branch office.
Both firms also offer a variety of account registrations. We’re talking custodial accounts, 529 plans, trust accounts, and 401k plans.
Winner: Schwab
Margin Services
Both firms offer margin trading in advisory and brokerage accounts. Long and short positions can be used, and advanced option spreads are available, too. Schwab’s equity profiles (but not Merrill’s) show the maintenance margin requirement for long stocks.
If margin is never used, a margin account won’t have any margin interest charges. Using margin, however, does come
at a cost. Schwab charges margin interest on a tiered schedule. It ranges from 11.825% to
10.075%.
Merrill Edge uses a more complicated schedule. Like Schwab, it looks at the loan
balance. It also considers the customer’s total assets within the Bank of America
family of companies and adds a variable lending rate that changes once a week.
Winner: Schwab
Computer Tech
On Schwab’s website, we found an easy-to-use order form called SnapTicket. It stays tucked away on the right-hand side of the site; clicking a trade button on a security’s page opens the ticket. On SnapTicket, three categories of securities can be traded: options, stocks/ETFs, and mutual funds.
A more complete trade ticket is available on its own web page; Schwab calls it the All-In-One Trade Ticket. Here, there are more advanced order choices. During our testing, we found OCO and contingent orders.
For an even higher level of trading, Schwab offers thinkorswim. Found under the Trade tab on the website, this browser platform offers live and simulated trading. It includes some really useful tools, including Level II quotes and a price ladder.
Last, but definitely not least, is thinkorswim in desktop mode. This advanced program delivers the highest level of trading at Schwab and includes some very advanced tools, including hundreds of technical studies and live streaming video news.
Merrill Edge does not offer video news on any platform. It doesn’t have a desktop program, although it does have a web-browser system called MarketPro. This useful program has many helpful trading tools, including an advanced options platform. The website has fewer tools but is still solid for basic trading and also includes some advanced derivative features.
Winner: Schwab
Mobile Trading
Schwab clients can use two apps: a main app and a thinkorswim app. The thinkorswim app is built for active trading and is the only one of the two that can place orders for futures and forex. Very advanced charts are on the thinkorswim app with more than 400 technical studies. Both apps include mobile check deposit and lots of market news.
Merrill Edge has one app. It includes many personal-finance tools through its connection to Bank of America. For example, we found a Life Plan® tool that helps with goal setting. For trading, there are horizontal charts with many graphing tools, option chains, and a trade ticket with trailing and stop orders.
Winner: Schwab
Additional Services
IRAs: Both Schwab and Merrill offer retirement accounts. Merrill, but not Schwab, charges $49.95 to close an IRA.
Fully-Paid Securities Lending: Schwab customers can earn extra cash by lending out their stock shares.
DRIP Service: Cash dividends can be reinvested as additional shares of the securities that paid them at either firm.
Extended Hours: Available at both firms. At Schwab, futures and forex can be traded day and night. Foreign stock exchanges can create around-the-clock trading, too.
Initial Public Offerings: Schwab has IPOs.
Fractional Shares: Stock trades at Schwab can be placed using whole dollars (for stocks outside the S&P 500, traders need to use Schwab’s Investment Themes).
Systematic Mutual Fund Purchases: Both firms offer automatic purchases of mutual-fund shares; Schwab also offers the service on the sell side.
Winner: Schwab
Recommendations
Retirement Planning & Long-Term Investing: Both companies have many articles and calculators on their sites for retirement. Financial planners are available online and at branch locations. Either one could work.
Small Investors: Schwab requires $5,000 for its automated service, while Merrill requires $1,000. Neither is a great fit for very small managed accounts. For self-directed trading, neither firm has a minimum.
Active Equity Trading: We give Schwab the edge with the thinkorswim platforms.
Beginners: We suggest an advisory account (ideally with a human advisor) at either firm in this comparison.
Mutual Funds: At Schwab, we found 5,817 funds. At Merrill Edge, we found 2,558. We would go with Schwab.
Promotions
Charles Schwab: $0 commissions + ACAT rebate + satisfaction guarantee at Charles Schwab.
Merrill Edge: Get $0 stock commissions at Merrill Edge.
Merrill Edge vs Schwab: Summary
Schwab is the clear winner in this comparison, although Bank of America customers may prefer Merrill for easy account linking.
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Updated on 3/5/2026.
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.
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