Merrill Edge Review (2026)
Merrill Edge Self-Directed, from Bank of America, fits investors who already bank at BofA and want brokerage, IRAs and a 529 under the same login. The one thing to know: uninvested cash is swept to a bank deposit paying 0.01% APY under $250,000, so idle cash earns almost nothing unless you buy a money market fund yourself. Stock and ETF trades are $0 online; options cost $0.65 a contract, and a full transfer out costs $49.95.
By Wealthy Pot Editorial · Facts checked October 19, 2026
Facts checked October 19, 2026 against Merrill Edge's own fee schedules, rate pages, disclosures and regulator records (17 sources, listed below). We re-check prices about once a month. We do not earn a commission from Merrill (Bank of America).
Merrill Edge at a glance
| Stocks and ETFs | $0 online, no trade or balance minimums; sales carry a transaction fee of $0.01 to $0.03 per $1,000; $29.95 (or 5% if lower) by phone with a broker [1] |
|---|---|
| Options | $0 commission + $0.65 a contract online; $0 to exercise or be assigned, except $0.65 a contract on cash-settled options [1] |
| Mutual funds | No-transaction-fee funds $0 online ($39.95 if sold within 90 days); transaction-fee funds $19.95 online; count of NTF funds not published [1] |
| Bonds and CDs | New issues and brokered CDs $0; Treasuries $0 online; other secondary bonds $1 a bond ($10 minimum, $250 maximum) [1] |
| Account minimum | None for investing and retirement accounts; $25 for a 529 [1] |
| Fractional shares | We found no dollar-based or fractional buying for self-directed accounts on Merrill's pages [8] |
| Account types | Individual and joint CMA, trust, custodial UGMA/UTMA, estate; Traditional, Roth, Rollover and Inherited IRAs; 529; Individual 401(k), SEP and SIMPLE IRAs, Small Business 401(k). No HSA found [1] |
| Default cash sweep | Merrill Lynch Bank Deposit Program: 0.01% APY under $250,000 (October 16, 2026); IRAs sweep to the Retirement Asset Savings Program at 0.01% [3] |
| Cash you can choose | Money market funds from $1, such as Fidelity Treasury Portfolio Class I (FISXX) at a 3.78% seven-day yield; Preferred Deposit 3.15% APY with a $100,000 minimum [3] |
| Margin rates | No public table: Merrill's base lending rate plus a spread set by your debit balance and BofA relationship; quoted by phone or in an online calculator [4] |
| Transfer out and IRA fees | $49.95 full transfer, $0 partial; $49.95 to close an IRA (not charged on top of the transfer fee) [2] |
| Robo option | Merrill Guided Investing 0.45% a year from $1,000; 0.85% with an advisor from $20,000 [1] |
| SIPC and excess | SIPC $500,000 ($250,000 cash) plus a Lloyd's policy with up to $1.9 million for cash per customer and a $1 billion aggregate limit [5] |
| Payment for order flow | Not on equity orders, Merrill says; stock orders go to its affiliate BofA Securities. Options are not addressed on that page [7] |
| Company | Merrill Lynch, Pierce, Fenner & Smith Incorporated (CRD 7691), a wholly owned subsidiary of Bank of America Corporation, New York [12] |
What a year at Merrill Edge costs
| Situation | Cost or interest | How we got it |
|---|---|---|
| Open and close a 10-contract options trade, twice a month for a year | $312 | $13 a round trip x 24. |
| $10,000 left uninvested for a year | $1 earned | Merrill Lynch Bank Deposit Program sweep at 0.01% APY, if the rate held all year. |
| Borrow $10,000 on margin for a year | Rate not published | Merrill Edge lends on margin but does not publish a rate table; it quotes rates by phone or in its calculator. |
| Move the whole account to another broker | $49.95 | Full outgoing transfer (ACATS). |
Hypothetical examples, our arithmetic from Merrill Edge's published fees, cash rate (as of October 16, 2026), read on October 19, 2026. Broker commissions and the broker's own per-contract fees only: the small SEC, FINRA, OCC and exchange fees passed through on sales and option trades are left out. Cash and margin rates move with the Federal Reserve's rate.
How Merrill Edge works
Merrill Edge Self-Directed is the do-it-yourself side of Merrill, the brokerage arm of Bank of America. You trade on merrilledge.com, in the Merrill app for iPhone and Android, or on Merrill Edge MarketPro, a trading platform with options analytics for self-directed clients. Your Merrill balances count toward BofA Rewards, the program that replaced Preferred Rewards on May 26, 2026 (tiers: Member, Preferred Plus at $30,000, Preferred Honors at $100,000, Premier at $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.
Cash is the part to watch. Uninvested cash in a brokerage account sweeps to the Merrill Lynch Bank Deposit Program, which paid 0.01% APY under $250,000 on October 16, 2026, and IRA cash sweeps to a program paying the same. Merrill also sells money market funds with a $1 minimum, but you must buy them; they are not the sweep. A hypothetical $25,000 left in the sweep for a year earns $25,000 x 0.01% = $2.50. The same $25,000 in Fidelity Treasury Portfolio Class I (FISXX), at its 3.78% seven-day yield on that date, would earn about $25,000 x 3.78% = $945 if the yield held all year. Money market funds are not FDIC-insured, and yields change daily; see how money market funds work.
Fees are low for stock and ETF investors and higher elsewhere. Stocks and ETFs are $0 online; options add $0.65 a contract; mutual funds outside the no-transaction-fee list cost $19.95 online; trading by phone with a broker costs $29.95. Moving the whole account out costs $49.95, closing an IRA costs $49.95 (not both), and an outgoing wire $24.95. Merrill does not publish a margin rate table; it sets rates from a base lending rate that resets weekly plus a spread, and asks you to call 888.637.3343 or use its calculator.
Self-directed clients get BofA Global Research, which Merrill says Extel named a top global research firm in 2025 for the 13th year. Support is by phone at 877-653-4732 and in person at select Bank of America financial centers. New IRA or CMA accounts opened with offer code 600ME and funded with at least $20,000 of qualifying net new assets within 45 days earn a cash bonus after 90 days: $100 for $20,000 to $49,999, $150 up to $99,999, $250 up to $199,999 and $600 for $200,000 or more. Withdrawals reduce the total, Merrill may cancel the offer at any time, and no end date is published as of October 19, 2026. If you want help choosing funds, Merrill Guided Investing builds a portfolio for 0.45% a year from $1,000; compare it with other robo-advisors.
Pros
- 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
Cons
- Default cash sweep pays 0.01% APY under $250,000
- No margin rate table; you have to call or use the calculator
- $49.95 to transfer the full account out or close an IRA
- $19.95 for mutual funds outside the no-fee list
- No fractional-share buying found for self-directed accounts
Who Merrill Edge fits, and who should skip it
A good fit 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.
Look elsewhere if
- You keep a cash balance and want it to earn a money market yield without buying a fund each time: Fidelity lets you pick a money market fund as the core position that holds cash.
- You want to buy fractional shares with small amounts: Schwab offers them in most US stocks and ETFs from $1.
- You want a published margin rate: Interactive Brokers lists 6.38% on Lite.
- You bank at Chase instead: J.P. Morgan Self-Directed sits inside the Chase app.
Limitations to know
- No-transaction-fee funds carry a $39.95 short-term redemption fee if you sell within 90 days. [1]
- We found no extended-hours trading, futures, direct crypto or international exchanges in the self-directed pricing. [1]
- MarketPro is not available for trust or business accounts. [9]
- The higher-paying Preferred Deposit needs $100,000 and is not a sweep; a Tier 5 sweep rate of 3.35% applies only to advisory and eligible retirement-plan accounts, not self-directed brokerage. [3]
- Other fees: transferring a government security $125, a voluntary reorganization $30, a legal transfer $75. [2]
- In September 2022 BofA Securities and Merrill paid a $125 million SEC penalty over business messages kept on unapproved channels. The firm's BrokerCheck record is long because it is also the full-service Merrill Lynch broker-dealer. [13]
Merrill Edge compared with alternatives
| Broker | Options per contract | Default cash rate | Transfer out | Fractional shares |
|---|---|---|---|---|
| Merrill Edge | $0.65/contract | 0.01% | $49.95 | No |
| Fidelity | $0.65/contract | 3.48% 7-day yield if you pick SPAXX (no default named) | $0 | Yes |
| Charles Schwab | $0.65/contract | 0.01% | $50 | Yes |
| J.P. Morgan Self-Directed | $0.65/contract (single-leg only) | 0.01% | $75 | Yes |
| Ally Invest | $0.50/contract | 0% | $50 | No |
- Pick Fidelity if you want to choose a money market fund as the core position for your cash and pay $0 to transfer out.
- Pick Charles Schwab if you want fractional shares from $1 and a published margin table.
- Pick J.P. Morgan Self-Directed if you bank at Chase and want fractional shares inside its app.
- Pick Ally Invest if you bank at Ally and want options at $0.50 a contract.
Security and privacy
- Merrill uses two-factor authentication with a one-time code at each login or on unrecognized devices. The Merrill Fraud Protection Guarantee says it will reimburse losses from unauthorized third-party activity in your account. [11]
- SIPC covers up to $500,000 per customer, including $250,000 of cash. A Lloyd's of London syndicate adds further cover, including up to $1.9 million for cash per customer, with a $1 billion aggregate limit. Cash in the bank deposit sweep is FDIC-insured instead, up to $250,000 per depositor, per ownership category, per bank. [5]
- In January 2025 the SEC ordered Merrill to pay a $25 million penalty over its cash sweep policies for advisory clients, as part of a $60 million settlement that also covered Wells Fargo. [16]
- In June 2026 the SEC ordered Merrill to pay a $7.5 million penalty for failing to file numerous suspicious activity reports from April 2020 to September 2024. [17]
- In July 2023 the SEC ordered a $6 million penalty over hundreds of suspicious activity reports not filed from 2009 to 2019, alongside a separate $6 million FINRA fine. [15]
- In April 2023 the SEC ordered Merrill to pay more than $9.5 million over undisclosed foreign-exchange markups charged to advisory clients. [14]
Recent changes
| Date | What changed |
|---|---|
| May 26, 2026 | Bank of America Preferred Rewards became BofA Rewards, with new tiers: Member, Preferred Plus ($30,000), Preferred Honors ($100,000) and Premier ($1 million). [6] |
| Nov 2025 | Self-directed schedule of miscellaneous fees revised. [2] |
Merrill Edge FAQ
Is Merrill Edge safe?
Merrill Edge accounts are held at Merrill Lynch, Pierce, Fenner & Smith (CRD 7691), a subsidiary of Bank of America. Securities are covered by SIPC up to $500,000 plus a Lloyd's policy, and swept cash is FDIC-insured at the bank up to $250,000 per category. Merrill offers two-factor login and a fraud protection guarantee for unauthorized activity. The SEC has penalized the firm several times since 2022, including $25 million in January 2025 over advisory cash sweeps.
Does Merrill Edge charge for options?
Yes: $0 commission plus $0.65 a contract online. Exercise and assignment are $0, except cash-settled options, which cost $0.65 a contract. Broker-assisted options trades cost $29.95 plus $0.65 a contract.
What does Merrill Edge pay on cash?
Uninvested cash sweeps to the Merrill Lynch Bank Deposit Program, which paid 0.01% APY under $250,000 on October 16, 2026. You can buy a money market fund instead, such as FISXX at a 3.78% seven-day yield on that date, or Preferred Deposit at 3.15% APY with $100,000 or more.
Is Merrill Edge good for beginners?
It has no account minimum, $0 stock and ETF trades, research from BofA Global Research and in-person help at select Bank of America financial centers. But it does not appear to offer fractional shares, and idle cash earns 0.01% unless you move it. Beginners with small amounts may also look at <a href="/micro-investing-on-small-budget/">how to start investing with little money</a>.
Merrill Edge vs J.P. Morgan Self-Directed?
Both are bank-owned, charge $0 for stocks and ETFs and $0.65 an options contract, and sweep cash at 0.01% APY. <a href="/brokers/jpmorgan/">J.P. Morgan</a> offers fractional shares from $5 and publishes margin rates but allows single-leg options only and charges $75 to transfer out; Merrill charges $49.95, has no published margin table and lists more retirement account types.
How do I transfer out of Merrill Edge and what does it cost?
Start the transfer at the receiving broker. Merrill charges $49.95 for a full account transfer and $0 for a partial one; closing an IRA costs $49.95, not charged on top of the transfer fee. Many receiving brokers reimburse transfer fees. Moving a 401(k)? See <a href="/401k-rollover/">401(k) rollover</a>.
How we researched this review
We did not get paid or receive a free account for this page. We read Merrill Edge's own pricing page, help center, security and privacy pages and app-store listing on October 19, 2026, quoted each fact from those pages, and link every one below. We did not run a long-term hands-on test, so we do not score the app; where a point rests on what the company says rather than something we can check, we attribute it to Merrill Edge. Cost figures are our own arithmetic. We re-check prices and plans about once a month and log changes in the table above.
Sources
- Merrill Edge, Pricing, checked October 19, 2026.
- Merrill Edge Self-Directed, Schedule of miscellaneous account and service fees (11/2025), checked October 19, 2026.
- Merrill, Interest rate sheet for cash sweep, deposit and money market options (as of October 16, 2026), checked October 19, 2026.
- Merrill Edge, Margin trading, checked October 19, 2026.
- Merrill, Self-Directed CMA account agreement, checked October 19, 2026.
- Merrill Edge, BofA Rewards, checked October 19, 2026.
- Merrill Edge, Order execution and trading, checked October 19, 2026.
- Merrill Edge, Stocks, checked October 19, 2026.
- Merrill Edge, Mobile investing and MarketPro, checked October 19, 2026.
- Merrill Edge, Home page (contact numbers), checked October 19, 2026.
- Merrill Edge, Security center, checked October 19, 2026.
- FINRA BrokerCheck, Merrill Lynch, Pierce, Fenner & Smith Incorporated (CRD 7691), checked October 19, 2026.
- SEC, Press release 2022-174 (September 27, 2022), checked October 19, 2026.
- SEC, Press release 2023-73 (April 3, 2023), checked October 19, 2026.
- SEC, Press release 2023-128 (July 11, 2023), checked October 19, 2026.
- SEC, Press release 2025-16 (January 17, 2025), checked October 19, 2026.
- SEC, Administrative proceeding 34-105790 (June 29, 2026), checked October 19, 2026.
Head-to-head comparisons
This review is for general information, not investment advice. Investing involves risk, including loss of principal; margin and options can lose more than you put in. Fees and rates change; check the broker's own pages before you open or move an account.