Platform Comparison

Ally Invest vs Merrill Edge

Compare Ally Invest and Merrill Edge on fees, DRIP, fractional shares and research for dividend investing.

AI

Ally Invest

★4.2

Ally Bank's brokerage arm pairs $0 commissions and free dividend reinvestment with seamless banking integration—though the lack of direct fractional shares holds it back.

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Higher Rated
ME

Merrill Edge

★4.5

Bank of America's brokerage offering seamless banking integration, solid research tools, and the valuable Preferred Rewards program for qualifying customers.

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Ally Invest vs Merrill Edge: Fees, Minimums & DRIP Compared

FeatureAlly InvestMerrill Edge
Our Rating4.2/54.5/5
Trading Commissions$0$0
Account Minimum$0$0
Fractional SharesDRIP onlyDRIP only
DRIPFreeFree
Research ToolsBasicGood
Best ForAlly Bank CustomersBank of America Customers

Ally Invest vs Merrill Edge: Pros and Cons

Ally Invest

Pros

  • + $0 commissions on stocks and ETFs
  • + Free dividend reinvestment (DRIP) with fractional share support
  • + $0 commissions on no-load mutual funds—the old $9.95 fee is gone
  • + Seamless integration with Ally Bank accounts (3.00% APY savings)
  • + Low options pricing at $0.50 per contract

Cons

  • - No direct fractional share purchases—DRIP is the only way to own fractions
  • - High margin rates, starting around 12% for balances under $25,000
  • - No cryptocurrency or futures trading
  • - $50 account transfer out fee (ACAT) and $25 IRA closure fee

Merrill Edge

Pros

  • + Commission-free trading on stocks and ETFs
  • + Seamless integration with Bank of America accounts
  • + Selective DRIP—choose which securities reinvest dividends
  • + DRIP supports fractional share reinvestment
  • + Preferred Rewards program offers fee discounts and bonuses

Cons

  • - No direct fractional share purchases (DRIP only)
  • - Mutual fund transaction fees up to $19.95
  • - Low interest rate on uninvested cash
  • - $49.95 full account transfer fee

Which Is Better for Dividend Investors: Ally Invest or Merrill Edge?

Choose Ally Invest if you...

  • Are in Ally Invest's core audience: ally bank customers

Choose Merrill Edge if you...

  • Are in Merrill Edge's core audience: bank of america customers
  • Prefer a higher-rated overall platform

Want the full breakdown of fees, DRIP, and research tools? Read our Ally Invest review and Merrill Edge review.

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Investment Disclaimer

Investing involves risk, including possible loss of principal. Past performance does not guarantee future results. This content is for informational purposes only and should not be considered investment advice.