Merrill Edge Bitcoin Crypto Currency Trading (2021)

Bank of America Merrill Edge crypto trading account fees. How to buy or sell on Merrill Lynch crypto currencies mutual fund, blockchain fund, ETF, BAT, NEO, Ripple, Stellar, Cardano, Dogecoin, Ethereum (ETH), Bitcoin (BTC), Bitcoin Cash (BCH), and Litecoin (LTC) alt coins.

Bitcoin Trading at Merrill Edge

Although Bank of America's Merrill Edge doesn’t offer cryptocurrency trading correctly speaking, there are nevertheless ways to play the Bitcoin market with a Merrill Edge account. We’re going to show you how.

Investing in the Blockchain

The blockchain is the digital record of cryptocurrency transactions. Many technology companies see a bright future in the blockchain due to its ability to reduce financial crimes. Because every transaction is permanently and publicly recorded, it’s easy to track purchases and sales.

While you can’t invest in digital currencies (or traditional currencies) with a Merrill Edge account, you can trade stocks that are investing heavily in blockchain technology.

One such company is IBM. It created a division inside itself aptly called IBM Blockchain. This department has hundreds of blockchain ventures in the pipeline. These range from digital payments to food delivery.

IBM’s share price is currently $130 and pays a quarterly dividend of $1.63. That’s a dividend yield of around 5%, an excellent value in a world of low interest rates.

Because Merrill Edge has a $0 commission on stock trades, making an investment in IBM or another blockchain stock is very low cost (there are small exchange fees on the sell side).

Merrill Edge Buy Bitcoin

Blockchain ETFs

If volatility is a concern to you, you could instead opt for a blockchain ETF. These are funds that invest in blockchain stocks. Because the funds are composed of multiple securities, they are naturally less volatile than an individual stock.

An example of a blockchain ETF we found at Merrill Edge is the First Trust Indxx Innovative Transaction & Process Fund. Trading with ticker symbol LEGR, the fund tracks the Indxx Blockchain Index. The fund’s portfolio includes IBM and several other stocks connected to blockchain technology, including:

Micron Technology

Merrill Edge’s profile for LEGR has a fund report from CFRA. The analyst grades the ETF 4 stars out of 5.

Be aware that some other popular blockchain ETFs, such as KOIN and BLCN, are not tradable at Merrill Edge.

Open Merrill Edge Account

Open Merrill Edge Account

Where to Trade Cryptocurrencies

If stocks and funds aren’t for you, there are alternatives out there where you can trade actual cryptocurrencies. Webull is one such broker.

Currently, Webull offers trading in these digital currencies: Bitcoin, Bitcoin Cash, Litecoin, Dogecoin, Dash, Zcash, Stellar, and Ethereum. The brokerage firm charges zero commissions, just like Merrill Edge. But unlike Merrill, Webull offers whole-dollar investing, which means it’s possible to trade fractional shares, or in the case of cryptos, fractional coins.

Another advantage of trading the crypto markets at Webull is the settlement timeframe. Crypto trades settle immediately, whereas stock and ETF trades at Merrill take two business days to settle.

How to buy bitcoin on Webull

For research, charting, and order entry, Webull has three platforms: mobile, desktop, and browser. All three of them can be used for crypto management. Although the computer platforms will obviously provide a larger charting screen, we actually prefer the mobile app because it is the only platform of the three to offer a community forum where traders can discuss the pros and cons of individual coins. Learn more...

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Open WeBull Account

Trading at Webull vs. Trading at Merrill Edge

One of the most important differences between playing the crypto space at Webull versus Merrill is that the latter broker’s accounts are protected by SIPC. If you trade cryptocurrencies at Webull, your cryptocurrency positions aren’t insured by SIPC. Holdings of securities (stocks, options, and funds) are protected, but cryptocurrencies are not.

While Webull is a reliable brokerage firm, if anything ever did happen to your crypto holdings, there is no agency to back them up. This is not the case with ETFs and stocks.