Platform Comparison

Betterment vs Merrill Edge

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

BT

Betterment

★4.5

The pioneer of robo-advising with automatic portfolio management, tax-loss harvesting, and dividend reinvestment—designed for truly hands-off investing.

Full Review
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.

Full Review

Betterment vs Merrill Edge: Fees, Minimums & DRIP Compared

FeatureBettermentMerrill Edge
Our Rating4.5/54.5/5
Trading CommissionsN/A$0
Account Minimum$0$0
Fractional SharesN/ADRIP only
DRIPAutomaticFree
Research ToolsAutomatedGood
Best ForHands-Off InvestorsBank of America Customers

Betterment vs Merrill Edge: Pros and Cons

Betterment

Pros

  • + Automatic portfolio rebalancing and dividend reinvestment
  • + Tax-loss harvesting can offset advisory fees through tax savings
  • + Goal-based investing with clear progress tracking
  • + Low 0.25% annual fee (even lower for high balances)
  • + 80+ expert-built portfolio strategies

Cons

  • - Management fee adds up on larger balances
  • - Limited control over individual investments
  • - No direct stock picking in traditional portfolios
  • - ETF expense ratios are in addition to advisory 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: Betterment or Merrill Edge?

Choose Betterment if you...

  • Are in Betterment's core audience: hands-off investors
  • Need automatic dividend reinvestment
  • Prefer a higher-rated overall platform

Choose Merrill Edge if you...

  • Are in Merrill Edge's core audience: bank of america customers

Want the full breakdown of fees, DRIP, and research tools? Read our Betterment 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.