Platform Comparison

E*TRADE vs Merrill Edge

Compare E*TRADE and Merrill Edge on fees, DRIP, fractional shares and research for dividend investing.

Higher Rated
ET

E*TRADE

★4.6

Morgan Stanley's full-service brokerage pairs $0 commissions and free dividend reinvestment with institutional-grade research—and in 2026 it finally added direct fractional shares and crypto trading.

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

E*TRADE vs Merrill Edge: Fees, Minimums & DRIP Compared

FeatureE*TRADEMerrill Edge
Our Rating4.6/54.5/5
Trading Commissions$0$0
Account Minimum$0$0
Fractional SharesYes (phased rollout)DRIP only
DRIPFreeFree
Research ToolsExcellentGood
Best ForResearch-Driven Dividend InvestorsBank of America Customers

E*TRADE vs Merrill Edge: Pros and Cons

E*TRADE

Pros

  • + Commission-free trading on stocks and ETFs
  • + Free dividend reinvestment (DRIP) with fractional shares, enrollable per security
  • + Industry-leading research from Morgan Stanley, Morningstar, and MarketEdge
  • + Direct fractional-share purchases now rolling out (started Q2 2026)
  • + Crypto trading live at a 0.50% fee—cheaper than Coinbase, Schwab, and Fidelity

Cons

  • - Fractional-share purchases are still in a phased rollout—not every stock is eligible yet
  • - No dollar-based orders yet; fractional buys are share-quantity only
  • - Low interest rate on uninvested cash
  • - Website navigation can be confusing

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: E*TRADE or Merrill Edge?

Choose E*TRADE if you...

  • Are in E*TRADE's core audience: research-driven dividend investors
  • 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 E*TRADE review and Merrill Edge review.

Compare Other Platforms

Not sure these are the right fit? Explore more comparisons.

E*TRADE vs FidelityE*TRADE vs Charles SchwabE*TRADE vs M1 FinanceMerrill Edge vs FidelityMerrill Edge vs Charles SchwabMerrill Edge vs M1 Finance
View All Platforms

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.