Merrill Edge vs Fidelity (2026)
Merrill Edge and Fidelity both charge $0 for online stock and ETF trades and $0.65 per options contract. Merrill ties brokerage to Bank of America accounts and BofA Rewards, and says it takes no payment for order flow on equity orders. Fidelity charges $0 to transfer out, offers fractional shares and holds idle cash in a money market core position, while Merrill's default sweep paid 0.01% APY under $250,000.
By Wealthy Pot Editorial · Facts checked October 19, 2026
| Feature | Merrill Edge | Fidelity |
|---|---|---|
| Type | Bank-owned | Full-service |
| Stock/ETF commission | $0 | $0 |
| Options per contract | $0.65/contract | $0.65/contract |
| 10-contract options trade, open + close | $13 ($312 a year at 2 a month) | $13 ($312 a year at 2 a month) |
| Rate on uninvested cash | 0.01% APY (Merrill Lynch Bank Deposit Program sweep) | 3.48% 7-day yield if you pick SPAXX (no default named) |
| Margin rate on $10,000 | Not published | 12.075% |
| Transfer out (full account) | $49.95 | $0 |
| Paid tier | None | None |
| Account minimum | $0 | $0 |
| Fractional shares | No | Yes |
| Account types | IRA, Roth, custodial, 529, SEP, SIMPLE, solo 401(k) | IRA, Roth, SEP, SIMPLE, solo 401(k), HSA, 529, youth |
| Platforms | Web, iOS, Android | Web, iOS, Android, Desktop |
Options, cash and margin rows are our arithmetic from each broker's published commissions, default cash rate and margin rates (commissions only, before small regulatory and exchange fees). Rates change with the Federal Reserve's rate.
Key differences
Idle cash is the main cost gap for a buy-and-hold investor. Merrill sweeps uninvested cash to its Bank Deposit Program at 0.01% APY under $250,000 (October 16, 2026), and IRA cash earns the same. Hypothetically, $25,000 left there for a year earns $25,000 x 0.01% = $2.50. At Fidelity, the same $25,000 in the SPAXX core position at its 3.48% 7-day yield (September 30, 2026) would earn $25,000 x 3.48% = $870 if the yield held. Merrill sells money market funds from $1, such as FISXX at a 3.78% seven-day yield, but you must buy them. Money market funds are not FDIC-insured; see how they work.
Merrill's case rests on the Bank of America link. Merrill balances count toward BofA Rewards, which replaced Preferred Rewards on May 26, 2026, with tiers at $30,000, $100,000 and $1 million. The only investing perk Merrill lists is a 0.10% to 0.15% discount on the Merrill Guided Investing robo fee; online trades are $0 for everyone. Merrill says stock orders go to its affiliate BofA Securities without payment for order flow, and self-directed clients get BofA Global Research. Fidelity takes payment for order flow on options and equities. Compare robo fees in our robo-advisor comparison.
Fidelity offers several things we did not find in Merrill's self-directed pricing: fractional shares from $1, online trading in 25 countries and crypto through a separate Fidelity Crypto account. We also found no extended-hours trading or futures at Merrill. Merrill does not publish a margin table; Fidelity starts at 12.075% under $25,000. Transaction-fee funds cost $19.95 online at Merrill and $49.95 per purchase at Fidelity. Leaving costs $49.95 for a full transfer or an IRA closing at Merrill and $0 at Fidelity. In June 2026 the SEC ordered Merrill to pay a $7.5 million penalty over unfiled suspicious activity reports.
Where Merrill Edge wins
- Merrill says it takes no payment for order flow on equity orders
- Wide account menu, including 529, custodial, SEP, SIMPLE and solo 401(k)
- Partial transfers out cost $0
- BofA Global Research for self-directed clients
- Excess SIPC cover with up to $1.9 million for cash
Where Fidelity wins
- $0 to transfer out, close an IRA or send a domestic wire
- Money market core positions in taxable accounts, with SPAXX at 3.48% (7-day yield, September 30, 2026)
- Fractional shares in NYSE and Nasdaq-listed stocks and ETFs from $1
- Online trading in 25 countries and 16 currencies
- Excess of SIPC coverage with a $1.9 million per-customer cash limit
Which should you choose?
Pick Merrill Edge if
- You already bank at Bank of America and want investing under the same login.
- You want a 529, a custodial account and a solo 401(k) or SEP IRA at one broker.
- You buy stocks and ETFs, sell rarely, and do not keep much cash idle.
- You want stock orders that Merrill says are not routed for payment for order flow.
Pick Fidelity if
- You hold funds or ETFs for the long run and want $0 transfer-out, IRA closing and annual IRA fees.
- You want a money market fund as the core position for idle cash rather than a bank sweep.
- You want branches: Fidelity says it has 215 Investor Centers.
- You buy foreign shares on their home exchange in a taxable account (25 countries).
Merrill Edge vs Fidelity: FAQ
Is Merrill Edge cheaper than Fidelity for options?
Per contract they match at $0.65 online. Merrill charges $0 to exercise or be assigned, except $0.65 a contract on cash-settled options; Fidelity charges $0 for exercise and assignment but adds index option fees, such as $0.50 a contract on SPX. See our options platform guide.
Which pays more on cash, Merrill Edge or Fidelity?
On cash left uninvested, Fidelity on the figures we have: Merrill's Bank Deposit Program paid 0.01% APY under $250,000 on October 16, 2026, while Fidelity's SPAXX core position had a 3.48% 7-day yield on September 30, 2026. Merrill offers money market funds you buy yourself, such as FISXX at a 3.78% seven-day yield, and a Preferred Deposit at 3.15% APY with a $100,000 minimum.
Can I move from Merrill Edge to Fidelity for free?
A partial transfer out of Merrill costs $0; a full transfer costs $49.95, and closing an IRA costs $49.95, though Merrill does not charge both. You start the transfer at Fidelity, which charges $0 if you move out later.
Compare these against every option in our online brokers comparison.
We summarize each company's published terms and pricing, not user reviews or our own testing. Facts come from our full reviews of both brokers, each checked against the broker's own fee schedule, rate and disclosure pages on October 19, 2026 with every source listed. Some outbound links may be affiliate links. That never affects our comparisons. Nothing here is investment advice.