Bank of America Brokerage Review: Key Points
• Through its Merrill Edge branch, Bank of America provides self-directed and advisory brokerage services.
• Only a limited selection of tradable assets is available with a Merrill Edge brokerage account.
• Merrill Edge has decent, though not exceptional, digital trading tools.
Overview of Brokerage Accounts at Bank of America
Bank of America owns Merrill Lynch, Pierce, Fenner & Smith Incorporated, and through this subsidiary, a range of investment accounts is offered. Below is a summary of the investing solutions at Merrill.
Investing
Merrill, a full-service division, provides both advisory and brokerage accounts. Merrill Edge, the online discount branch, also has the same two account types (with lower fees and smaller minimums). Merrill Edge supports these asset types:
- Stocks (including penny and OTC shares)
- Option contracts
- Mutual funds
- ETFs
- Closed-end funds
- Bonds and other fixed-income products
Merrill Edge’s advisory service trades only ETFs. It isn’t purely robo-driven, as advisors build portfolios, but its fees are still low. Merrill also has a full-service management program with many Wealth Management offerings, including one-on-one financial advice from a designated advisor.
Both Merrill and Merrill Edge provide multiple tax-friendly accounts to help clients reduce taxes. These include 529 plans, IRAs, small-business 401k accounts, and custodial options.
Banking
Merrill Edge customers can get checkwriting and a Visa debit card for their brokerage accounts. These banking features do not form an actual bank account; they are simply linked to the existing brokerage. Some tax-advantaged plans don’t qualify for these tools.
Brokerage accounts at both Merrill and Merrill Edge are automatically part of the firm’s FDIC-sweep system, which sends uninvested funds to Bank of America, where they receive FDIC coverage. While the insurance is helpful, current rates are extremely low (0.01% for amounts under one million dollars).
Merrill offers various money market mutual funds from providers like Fidelity and BlackRock. Many currently earn yields above 5.0%.
There is the option to skip the hybrid brokerage-banking structure and open a checking or savings account at Bank of America alone. These deposit accounts instantly link to existing Merrill accounts, and transferring money among all accounts is straightforward. A Bank of America credit card also syncs within Merrill’s software.
Bbank of America Brokerage Account Fees
Even with this extensive set of financial services, charges and minimums are quite manageable at the discount branch. Merrill Edge has no opening deposit requirement, and most trades have zero commissions.
A Merrill Edge advisory account starts at $1,000 and costs 0.45% a year. Adding a live financial advisor raises these figures to $20,000 and 0.85%.
Figures at Merrill’s full-service division differ. Brokerage customers pay between 5.0% and 0.50%
of each trade’s total for stock transactions. Option and bond trades also use a principal-based scale. Advisory solutions usually cost under 1.75% of assets and have various minimums, sometimes $100,000.
Merrill Edge’s optional checkbook and Visa debit card are free. The debit card’s ATM withdrawals at Bank of America machines do not carry a fee.
Margin Service
Margin trading is available in Merrill brokerage accounts. Unfortunately, its pricing plan is one of the most confusing around. The borrowing rate depends on three factors:
- A weekly resetting base rate
- The size of the debit balance
- Total household assets held under Bank of America
Website
Both brokerage and advisory accounts are simple to manage on Merrill Edge’s website. Its self-directed offerings include charting, research on securities, and order forms. Under the top Research tab, there are search tools for stocks, funds, and options. The option scanner is high-level.
Merrill Edge’s web-browser tool called MarketPro carries powerful functions, including Level II quotes, fundamental evaluations, OptionsPlay for derivatives, currency pair data (though not tradable), a calendar of economic events, and additional features.
The order forms on both the website and MarketPro are the same, and they allow stop and trailing types.
Mobile App
Merrill Edge has developed a mobile application that uses the same type of trade ticket found on its desktop versions. It has specialized tickets for options and mutual funds. However, its charting capabilities are restricted, only displaying line charts with no tools. There is also no video news.
On the positive side, the app offers robust research content under the Research link in the bottom menu. We saw market commentary, ratings from CFRA and Morningstar, plus trade data like dividend yield and volume stats. A glossary is included for newcomers, and mobile check deposit is another plus.
Other Software
Merrill Edge does not provide a desktop program or Apple Watch app. Its mobile tool does run on tablets, which is one benefit.
Further Services
Extended-hours Trading: Both pre-market and after-hours sessions are supported at Merrill Edge.
Fractional Shares: Not available.
IRA Service: Merrill Edge offers IRAs (with a $49.95 closing fee).
Dividend Reinvestment Plan: Offered at no extra charge.
Stock-Lending Income Program: Not provided.
IPO Access: Merrill Edge does not give clients Initial Public Offerings.
Recurring Mutual Fund Purchases: Supported.
Our Recommendations
Long-Term Investors & Retirement Savers: A retirement account at Merrill or Merrill Edge, together with their educational tools, can be a solid strategy for the future.
Stock and ETF Trading: A self-directed Merrill Edge account plus MarketPro can be a low-cost choice, but thinkorswim is a stronger platform.
Small Accounts: Merrill Edge’s self-directed (non-IRA) plans are suitable.
Beginning Investors: Managed solutions at Merrill, or a personal advisor with lower fees.
Mutual Funds: We located 2,619 funds through Merrill Edge’s screener. At
Charles Schwab, we found 6,157.
Schwab is our pick.
Bank of America Brokerage Review Verdict
Bank of America provides some decent, though not remarkable, investment choices through Merrill.
Updated on 3/17/2025.
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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