ME
4.5

2341 reviews

Merrill Edge Review

Best Bank of America Integration

Bank of America's brokerage offering seamless banking integration, solid research tools, and the valuable Preferred Rewards program for qualifying customers.

$0
Stock/ETF Commissions
$0
Account Minimum
DRIP only
Fractional Shares
Free
DRIP

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
  • Instant transfers between BofA checking and Merrill accounts
  • Solid research tools including Idea Builder investment finder
  • Access to Merrill Lynch financial advisors for guidance

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
  • No cryptocurrency, forex, or futures trading
  • Not suitable for tax-loss harvesting strategies

Bank of America Integration

Merrill Edge's biggest advantage is its seamless integration with Bank of America. Instant transfers between your BofA checking account and Merrill Edge investment account can be crucial during market volatility.

Users report being able to capitalize on market dips by instantly transferring funds, while customers of other brokers had to wait 2-3 business days for transfers to clear.

The unified Bank of America app lets you manage banking, credit cards, and investments in one place—convenient for those who value having all finances under one roof.

Dividend Reinvestment (DRIP)

Merrill Edge offers unusual DRIP flexibility. Unlike brokers that require all-or-nothing enrollment, you can selectively enable DRIP for specific securities.

This is valuable for income-focused investors who want to automatically reinvest dividends from growth stocks while receiving cash distributions from income-generating holdings.

DRIP purchases are commission-free and support fractional shares, letting every penny of your dividends go back to work. However, fractional shares are only available through DRIP—not direct purchases.

  • Free dividend reinvestment
  • Fractional shares via DRIP only
  • Per-security DRIP selection
  • Commission-free reinvestment
  • Works with eligible stocks and ETFs

Preferred Rewards Program

Bank of America's Preferred Rewards program offers valuable benefits for customers with $20,000+ combined balance across BofA deposit and Merrill investment accounts.

Depending on your tier (Gold, Platinum, Platinum Honors, Diamond), you receive benefits like bonus credit card rewards, reduced loan rates, and fee waivers.

For investors, this can mean better rates on margin, waived fees, and other perks that add up over time.

Research & Tools

Merrill Edge provides solid research offerings including the Idea Builder tool that helps you find investments matching your criteria.

The platform includes research from Morningstar, CFRA, and other providers. While not as comprehensive as Fidelity or Schwab, it covers the essentials for most investors.

ESG (Environmental, Social, Governance) investing options and research make Merrill appealing for socially conscious investors.

Guided Investing Option

Merrill Guided Investing is a robo-advisor service requiring $1,000 minimum and charging 0.45% annually.

The service creates a diversified portfolio based on your goals and automatically rebalances. It's an option for hands-off investors who want some professional management.

For DIY dividend investors, the Self-Directed option with $0 commissions makes more sense.

Limitations

Merrill Edge doesn't offer cryptocurrency, forex, or futures trading. Penny stock trading is also not supported.

Mutual fund transaction fees can reach $19.95, higher than many competitors.

If you sell a position, fractional shares earned through DRIP may take several additional days to sell off.

Fees & Costs

Transparent breakdown of all fees you might encounter.

Fee TypeCost
Stock & ETF Trades$0
Options Trades$0 + $0.65/contract
Account Minimum$0
Account Maintenance Fee$0
Inactivity Fee$0
Dividend Reinvestment (DRIP)Free
Mutual Funds (w/ transaction fee)Up to $19.95
Guided Investing0.45% annually ($1K min)
Account Transfer Out (Full)$49.95
IRA Closure$49.95

Who Merrill Edge Is Best For

Bank of America Customers

Seamless integration and instant transfers make Merrill the natural choice for BofA banking customers.

Preferred Rewards Members

Combine $20K+ in BofA/Merrill accounts to unlock valuable benefits across all Bank of America products.

Selective DRIP Users

Per-security DRIP control lets income investors fine-tune which dividends reinvest vs. pay cash.

The Bottom Line

Merrill Edge is an excellent choice for Bank of America customers who want their banking and investing integrated. The selective DRIP feature offers unusual flexibility for dividend investors, and the Preferred Rewards program provides meaningful benefits for those with $20K+ combined balance. However, the lack of direct fractional shares, higher mutual fund fees, and limited advanced features mean active traders and small-account beginners may be better served elsewhere. For BofA loyalists seeking simplicity, Merrill Edge delivers.

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