Platform Comparison

Merrill Edge vs Vanguard

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

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
Higher Rated
VG

Vanguard

★4.6

The pioneer of low-cost index investing with industry-leading expense ratios and a legendary reputation for putting investors first.

Full Review

Merrill Edge vs Vanguard: Fees, Minimums & DRIP Compared

FeatureMerrill EdgeVanguard
Our Rating4.5/54.6/5
Trading Commissions$0$0
Account Minimum$0$0
Fractional SharesDRIP onlyETFs only
DRIPFreeFree
Research ToolsGoodBasic
Best ForBank of America CustomersIndex Fund Investors

Merrill Edge vs Vanguard: 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

Vanguard

Pros

  • + Industry-leading low expense ratios (average 0.037%)
  • + Commission-free trading on all stocks and ETFs
  • + Excellent order execution quality (99.10%) with no payment for order flow
  • + Free dividend reinvestment for stocks, ETFs, and mutual funds
  • + Legendary reputation and client-owned structure

Cons

  • - No fractional shares for individual stocks (ETFs only)
  • - Outdated website and mobile app interface
  • - Customer service has long wait times and mixed reviews
  • - Basic research and trading tools compared to competitors

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

Choose Merrill Edge if you...

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

Choose Vanguard if you...

  • Are in Vanguard's core audience: index fund investors
  • Prefer a higher-rated overall platform

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