Merrill Edge vs. Fidelity
Key Points:
• Schwab, Merrill Edge, and Fidelity provide far more than basic brokerage accounts.
• Cash accounts and managed investing options are also available.
• All three firms offer advanced trading platforms and competitive pricing.
Before opening a new brokerage account, it’s worth comparing Fidelity Investments, Charles Schwab, and Merrill Edge. Each firm offers strong features at a reasonable cost.
Cost
| Broker Fees |
Stock/ETF
Commission |
Mutual Fund
Commission |
Options
Commission |
Maintenance
Fee |
Annual IRA
Fee |
|
Charles Schwab
|
$0
|
$49.95 ($0 to sell)
|
$0.65 per contract
|
$0
|
$0
|
|
Fidelity
|
$0
|
$49.95
|
$0.65 per contract
|
$0
|
$0
|
|
Merrill Edge
|
$0
|
$19.99
|
$0.65 per contract
|
$0
|
$0
|
Services
Promotions
Charles Schwab: $0 commissions + ACAT rebate + satisfaction guarantee at Charles Schwab.
Fidelity: Currently, no promotions.
Merrill Edge: Get $0 stock commissions at Merrill Edge.
Tradable Products
All three investment firms support trading in the following asset classes:
• Funds (closed-end, exchange-traded, and mutual)
• Stocks, including ADRs, REITs, and OTC shares
• Options
• Bonds and other fixed-income products
Schwab also allows trading in forex and futures. Fidelity offers access to cryptocurrencies. Both Fidelity and Schwab provide international stock trading.
Portfolio management services are available at all three firms. Each offers robo-advisors and full-service management. Branch offices are also available for in-person support, which advisory clients may find helpful.
Winner: Draw between Fidelity and Schwab
Cash Management
Fidelity, Merrill Edge, and Schwab offer more than just investing tools. They also include useful cash-management features. Merrill Edge provides free checkwriting and a debit card, though out-of-network ATM withdrawals (outside Bank of America) come with fees.
Fidelity and Schwab both offer debit cards that refund ATM fees worldwide. Neither charges foreign transaction fees, and both allow checkwriting.
At Fidelity and Merrill Edge, debit cards and checks connect directly to brokerage accounts. Schwab instead uses Schwab Bank, while FDIC-sweep programs are available at both Fidelity and Merrill Edge.
Because Merrill Edge is part of Bank of America, accounts at both institutions can be linked for quick transfers.
Winner: Very close overall
Mobile Apps
The Fidelity app brings together brokerage, managed, and cash accounts. A separate app is available for Youth accounts. The main app supports landscape charts with indicators, company events, and more. Order tickets include trailing and stop orders, along with dedicated tickets for mutual funds and options. An Apple Watch app is also offered.
Schwab also offers an Apple Watch app. Its main app includes market news, asset-specific order tickets, and landscape charting with tools. A more advanced app, thinkorswim, supports futures and forex trading and offers in-depth charting.
Merrill Edge has a single mobile app. There is no Apple Watch version, but it includes personal finance tools such as a free FICO score and Bank of America discounts. Trading features include charts with indicators, a solid order ticket, option chains, and research from CFRA and Morningstar.
Winner: Schwab
Computer Software
Desktop and laptop platforms provide more advanced tools. Merrill Edge’s website displays alerts, watchlists, and key sections on a stock’s profile:
Overview
Charts
News
Option Chain
Ratings & Reports
Earnings
Fundamentals
Technical Analysis
Advanced option tools are found under the Research tab. For even more trading features, MarketPro is available as a browser-based platform.
Schwab also offers a browser-based version of thinkorswim. It includes:
• A powerful trade ticket with multiple order types
• Multi-leg trading
• Order rules
• Time & sales data
• Paper trading
The main Schwab website also includes extensive educational content and additional trading tools.
Fidelity’s website also focuses heavily on education. The trade ticket supports eight order types, and charts can display up to 23 styles. While there is no separate browser platform, the site includes advanced tools such as alerts and watchlists.
Winner: Schwab
Margin Services
All three brokerages offer margin trading for eligible securities, which increases both potential gains and losses. Fidelity’s margin rates range from 11.825% to
10.075%, depending on the loan amount.
Schwab’s rates are similar up to $250,000, with negotiable pricing above that level.
Merrill Edge uses a base lending rate that updates weekly. Clients with larger balances
(over $100,000) at Bank of America may qualify for reduced margin rates.
Winner: Draw between Fidelity and Schwab
Bonus Services
Individual Retirement Accounts: IRAs are available at all three firms. Merrill Edge is the only one that charges a fee to close an IRA.
DRIP Service: All three brokers offer automatic dividend reinvestment for stocks, ETFs, and mutual funds.
Extended Hours: Available across the board. Schwab offers nearly 24-hour futures and forex trading, while Fidelity supports 24/7 crypto trading. International markets are also accessible at Fidelity and Schwab.
IPO Access: Offered by Fidelity and Schwab.
Fractional Shares: Schwab allows whole-dollar stock purchases; Fidelity supports fractional stocks and ETFs.
Fully-Paid Securities Lending: Available at all three firms.
Automatic Mutual Fund Purchases: Supported by all three brokers.
Winner: Slight edge to Schwab
Recommendations
Small Accounts: Fidelity for robo-advising, Schwab for self-directed trading.
Beginners: Any of these brokers work well with advisory accounts. A hybrid robo-human service is even better, and all three offer one.
Long-Term Investors and Retirement Planners: Each firm provides solid tools for building long-term wealth.
Active Stock/ETF Trading: Fidelity stands out for fractional shares. Fidelity and Schwab are both strong on desktop platforms.
Mutual Funds: Fidelity offers 9,000+ funds, Schwab has over 5,000, and Merrill Edge has fewer than 3,000. Fidelity leads this category.
Promotions
Charles Schwab: $0 commissions + ACAT rebate + satisfaction guarantee at Charles Schwab.
Fidelity: Currently, no promotions.
Merrill Edge: Get $0 stock commissions at Merrill Edge.
Merrill Edge vs Fidelity: Results
While Schwab finishes slightly ahead overall, Fidelity excels at full financial planning, and Merrill Edge remains a solid option for options traders.
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