Introduction
Are you searching for a broker with advanced trading tools and very low costs? E*TRADE
and Merrill Edge both deserve a close look. These two brokers offer strong value. Before picking one over the other, be sure to review
the following comparison:
Cost
|
|
|
| Rating |
|
|
| Stocks, ETFs |
$0 |
$0 |
| Options (per contract) |
$0.65 |
$0.65 |
| Mutual Funds |
$19.95 |
$0 |
| Initial Funding Requirement |
$0 |
$0 |
| Inactivity Fee |
$0 |
$0 |
| IRA Annual Fee |
$0 |
$0 |
| IRA Termination Fee |
$49.95 |
$0 |
| Outgoing Wire Fees (Domestic) | $24.95 | $25 |
| Full Account Transfer Out | $49.95 | $75 |
| Partial Account Transfer Out | $0 | $0 |
Self-Directed Trading
In self-directed accounts, Merrill Edge offers the following investment choices:
- Options
- Stocks
- Bonds
- Funds (mutual, exchange-traded, and closed-end)
E*TRADE provides the same list but adds
futures and options on futures.
OTC securities are available at both firms. E*TRADE charges a
$6.95 commission on over-the-counter trades, or
$4.95 for high-volume traders. Merrill Edge does not.
Winner: Draw
Portfolio Management
In addition to self-directed investing, both brokerage firms also provide managed-account services. E*TRADE has a robo-advisory program. The cost is
0.30% per year. Merrill Edge has an online managed program without an advisor. The cost of that program is
0.45%.
Merrill Edge also has something E*TRADE doesn’t: low-cost online management with a dedicated human investment advisor. The cost is
0.85%.
For investors who want the highest level of guidance and service, both brokerage firms also offer traditional management. Merrill Edge has advisors available through many Bank of America locations. E*TRADE customers can also access financial-advisor services through Morgan Stanley, although E*TRADE’s self-directed brokerage service is mainly online and phone-based.
With either broker’s traditional service, fees and minimums vary.
Winner: Pretty close overall
Websites
Self-directed and managed accounts can be accessed through both firms’ websites. During our review, we found both websites very useful for account management, investment research, and order entry.
E*TRADE’s website offers several order types. Stop limit on quote is one of them. Charts include comparisons, company events, and several plot styles. Although these tools will be enough for many traders, a more advanced setup is available on Power E*TRADE, the company’s browser-based platform. This software has many order types, including some that are not available on the regular website. Charts include many drawing tools that won’t be found on the website’s standard charts.
Merrill Edge’s website has decent charting, although drawing tools are missing. It makes up for this limitation on MarketPro, its browser-based platform. We found more than 20 drawing tools on it.
The trade ticket on MarketPro is the same ticket used on the website. There are 8 order types, including stop quote limit and 4 trailing orders. There are only 2 duration choices, however: GTC and day.
Winner: E*TRADE
Other Software
Along with website trading, both companies offer mobile apps with many trading tools. E*TRADE actually has two apps. One is based on the Power platform already discussed. The other app is useful for account management, money transfers, and similar tasks. Both apps have good charting tools. The Power app can trade futures contracts.
Merrill Edge has only one app, but it does include some useful features. Mobile check deposit and bill pay are examples. There are also solid research materials, including Morningstar articles and security analysis reports from Bank of America Global Research.
Although we like the Merrill Edge app, the brokerage firm does not offer a desktop trading platform. E*TRADE does. Called Power E*TRADE Pro, the platform provides a high-level trading experience with Level II quotes, full-screen charting, market-depth tools, and much more.
Winner: E*TRADE
Margin Services
Both broker-dealers in this comparison offer margin and cash accounts. A cash account can be upgraded to margin status on either website. Only E*TRADE offers portfolio margin for large accounts.
As for pricing, E*TRADE charges anywhere between
12.45% and 10.45% for margin debits, depending on the loan amount. Merrill Edge no longer publishes its rates online. Instead, it says on its website that “rates are determined by a few factors, including the base lending rate (which resets weekly), your debit balance and your overall relationship with Bank of America® and Merrill®.” This suggests large accounts may receive the best pricing.
E*TRADE has a very thorough margin section on its website that includes these margin resources:
- Margin Analyzer Tool
- Margin Calculator Tool
- Requirements search
- Risk Slide Tool
Merrill Edge’s website has no comparable resources.
Winner: E*TRADE
Other Services
Initial Public Offerings: IPO trading is available with an E*TRADE account but not with a Merrill Edge account.
Banking Tools: At Merrill Edge, customers can add a debit card and checkwriting to a brokerage account. It’s also possible to link a Bank of America checking or savings account. E*TRADE offers linked bank accounts through Morgan Stanley Private Bank, and eligible brokerage accounts can also use a debit card.
Individual Retirement Accounts: IRAs are available at both brokerage firms. E*TRADE charges $25 for early withdrawals, and Merrill Edge charges
$49.95 to close an IRA.
Extended Hours Trading: Merrill Edge’s pre-market trading begins at 7:30 am, EST. E*TRADE’s early-bird session begins at
7:00 am. Both firms end at
8:00 pm. Only E*TRADE provides overnight trading in certain ETFs.
DRIP Service: Available at both firms.
Fractional Shares: E*TRADE offers fractional ETF purchases through Automatic Investing. Merrill Edge does not offer whole-dollar trading in stocks or ETFs.
Periodic Mutual Fund Investing: E*TRADE and Merrill Edge customers can set up automatic mutual fund purchases.
Winner: Slight advantage to E*TRADE
Recommendations
ETF/Stock Trading: We lean toward E*TRADE with Power E*TRADE or Power E*TRADE Pro.
Beginners: A managed account with either firm is a strong way to begin.
Long-Term Investors & Retirement Savers: E*TRADE has more target-date mutual funds (222 versus 86). Both firms offer individual 401(k) plans for self-employed investors. E*TRADE’s plan has a Roth feature, while Merrill’s plan has administration, recordkeeping, and asset-based fees. Merrill Edge, however, could be a good fit for wealth management customers because of the broker’s connection to Bank of America’s branch network.
Mutual Fund Trading: E*TRADE has
5,000+ mutual funds. Merrill Edge has less than 3,000. This is an easy choice.
Small Accounts: Merrill’s investment-advisory service has a
$1,000 minimum starting balance.
E*TRADE’s robo program requires
$500. Neither firm has any minimums or ongoing fees for self-directed taxable accounts.
Merrill Edge vs E*TRADE: Verdict
Although Merrill Edge offers a lot of useful features, E*TRADE is the clear winner in this comparison.
Updated on 7/17/2026.
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