Platform Comparison

Interactive Brokers vs Merrill Edge

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

IB

Interactive Brokers

★4.5

The professional-grade platform with access to 150+ global markets, industry-leading margin rates, and powerful screening tools.

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

Interactive Brokers vs Merrill Edge: Fees, Minimums & DRIP Compared

FeatureInteractive BrokersMerrill Edge
Our Rating4.5/54.5/5
Trading Commissions$0 (Lite)$0
Account Minimum$0$0
Fractional Shares10,000+ stocksDRIP only
DRIPSmall feeFree
Research ToolsGoodGood
Best ForInternational Dividend InvestorsBank of America Customers

Interactive Brokers vs Merrill Edge: Pros and Cons

Interactive Brokers

Pros

  • + Access to 150+ markets across 33 countries in 27 currencies
  • + Commission-free US stock and ETF trading with IBKR Lite
  • + Industry-leading low margin rates (5.83% Pro, 6.83% Lite)
  • + Fractional shares on 10,000+ US, Canadian, and European stocks
  • + Powerful dividend yield screeners with 50+ factors

Cons

  • - Steep learning curve—platforms built for professionals
  • - DRIP charges a small commission (unlike most competitors)
  • - Account-level DRIP only—can't select specific stocks
  • - Customer service wait times can be long during peak hours

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: Interactive Brokers or Merrill Edge?

Choose Interactive Brokers if you...

  • Are in Interactive Brokers's core audience: international 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 Interactive Brokers 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.