Platform Comparison

Merrill Edge vs Tastytrade

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

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.

Full Review
TT

Tastytrade

★4.4

The options-focused platform with low contract fees, excellent education, and DRIP support—ideal for dividend investors using covered call strategies.

Full Review

Merrill Edge vs Tastytrade: Fees, Minimums & DRIP Compared

FeatureMerrill EdgeTastytrade
Our Rating4.5/54.4/5
Trading Commissions$0$0
Account Minimum$0N/A
Fractional SharesDRIP onlyYes ($5 min)
DRIPFreeFree
Research ToolsGoodBasic
Best ForBank of America CustomersCovered Call Writers

Merrill Edge vs Tastytrade: Pros and Cons

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

Tastytrade

Pros

  • + Commission-free stock and ETF trading
  • + Low options pricing: $1 to open, $0 to close (capped at $10/leg)
  • + Fractional shares available for purchases and DRIP
  • + Free dividend reinvestment program
  • + Exceptional options education and content

Cons

  • - Very low 0.01% interest on uninvested cash
  • - No mutual funds, bonds, or forex trading
  • - Higher-than-average margin rates
  • - Steep learning curve for beginners

Which Is Better for Dividend Investors: Merrill Edge or Tastytrade?

Choose Merrill Edge if you...

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

Choose Tastytrade if you...

  • Are in Tastytrade's core audience: covered call writers

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