Introduction

Merrill Edge belongs to one of the world’s largest banking companies. But does that ownership translate into a better investing experience than Fidelity provides? This comparison gives the answer.

Category One: Investment Methods

Merrill Edge:

Self-directed investors at Merrill Edge can trade ETFs, closed-end funds, mutual funds, stocks, options, and fixed-income securities. The brokerage firm also offers a managed-account program that starts at 0.45%.

Fidelity:

Fidelity also provides both managed and self-directed accounts. Fidelity Go has no advisory fee for balances under $25,000 and costs 0.35% annually for balances of $25,000 or more. Fidelity’s self-directed accounts offer the same investment vehicles available at Merrill. Fidelity also provides cryptocurrencies and foreign stocks on multiple exchanges, services Merrill Edge doesn’t offer.

Winner: Fidelity

Category Two: Websites

Merrill Edge and Fidelity both have user-friendly websites for managing self-directed and managed accounts.

Merrill Edge:

The Merrill Edge site doesn’t have an overwhelming amount of material on it. A trade bar has been removed. The web-based order ticket has 8 order types, 4 of which are trailing orders. There is an all-or-none feature for 200 shares or more.





Charts on the Merrill site have 7 plot styles. Examples include dot and HLC (high, low, close) bars. A chart cannot be expanded across the full width of the monitor, which is somewhat disappointing. But there are 4 company events available, 1 more than normal. The extra one is rating changes.

Watchlists and alerts are available on the site, and a search bar in the upper-right corner makes navigation much easier.

Fidelity:

Fidelity’s website has a similar search bar in the same location. Alerts and watchlists are also available on the site.





Fidelity separates itself from its rival in charting. A chart can be detached into its own browser window. Charts can also be shown across the full width of the computer screen. A chart can be saved or exported. There are only 6 plot styles, though.

The order ticket on Fidelity’s site has the same order types Merrill Edge offers. It also has the same all-or-none feature.

A very useful tool on Fidelity’s website that we didn’t find on Merrill Edge’s site is Full View. This dashboard displays Fidelity and non-Fidelity accounts, calculates net worth, shows recent transactions, and more. There is no fee to use the platform.

Winner: Fidelity

Category Three: Mobile Apps

Merrill Edge:

The Merrill Edge app works on both tablets and phones. During our testing of the software on an iPhone, we found several useful tools.





The app’s order ticket is the same order ticket used on the website. The app has separate tickets for mutual funds and options.

Charts on the Merrill app have company events, comparisons, 4 display styles, and several technical studies. A chart can be rotated horizontally.

Besides trading tools like options chains and alerts, the Merrill app offers free FICO scores through its connection with Bank of America. We also found mobile check deposit and a spending & budgeting widget.

Fidelity:

Fidelity’s app doesn’t provide a free credit score, but it does have many other strong features. There is a search tool for new issue CDs, for example. We also found bill pay, mobile check deposit, and a chat bot.





The app’s trade ticket is the same one available on the broker’s website. Mutual funds and options have separate tickets that are easy to use.

Charts on Fidelity’s app include many of the same tools we found on Merrill’s app. During our trial run of the platform, we found Fidelity’s charting program a little easier to use than Merrill’s.

Two mobile features Fidelity offers in this category that Merrill Edge doesn’t have are iMessage and an Apple Watch app. The latter can display a watchlist, market news, and a small chart.

Winner: Fidelity

Category Four: Advanced Platforms

Both brokerage firms offer advanced platforms for active traders.

Merrill Edge:

MarketPro is Merrill’s advanced online trading platform. This higher-level software has strong charting, useful options tools, free technical analysis, alerts, watchlists, and Level II quotes.





On the downside, there is no direct-access routing on the platform. Merrill Edge also did not add video news, and it uses the same order ticket found on the website.

Fidelity:

Fidelity offers Active Trader Pro and the newer Fidelity Trader+ Desktop. Active Trader Pro has multiple order tickets. One is a basket order system that can send several orders at once. Another is a conditional order entry system that can submit complex orders such as OTO (one triggers the other) and OCO (one cancels the other).





Like MarketPro, Active Trader Pro has Level II quotes, advanced charting, useful options tools, alerts, watchlists, and more. Fidelity also includes video news from Bloomberg and direct-access routing.

Winner: Fidelity

Category Five: Margin

Both investment firms in this comparison offer margin trading, including limited use in retirement accounts. A cash account at either company can be converted to a margin account online.

Merrill Edge:

Merrill Edge’s software doesn’t display margin information for specific assets, although it does show an account’s basic margin details, such as buying power. Merrill Edge says margin rates are determined by a few factors, including the base lending rate, debit balance, and overall relationship with Bank of America and Merrill. In our rate table, the current range is between 11.18% and 12.18%. Very large accounts can receive reduced rates.

To add margin privileges to an existing cash account, hover over the Help & Settings tab at the top of the Merrill Edge site and then click on Forms & Applications. The next page has the online margin application.

Fidelity:

Fidelity customers pay anywhere from 7.525% to 11.825% for margin debits. Fidelity also has a margin calculator that can show current margin requirements and model hypothetical trades.

To convert a cash account to a margin account at Fidelity, hover over the Accounts & Trade tab and select Account Features. On the next page, click on Margin underneath Brokerage & Trading.

Winner: Fidelity

Category Six: Miscellaneous Services

Extended Hours Trading: Both Fidelity and Merrill Edge have pre-market and after-hours trading. Fidelity has slightly longer hours.

Banking Tools: Checks and a debit card can be attached to a brokerage account at Merrill Edge. Fidelity requires a separate account for these cash-management tools, although the account is still a brokerage account without margin.

Individual Retirement Accounts: Both securities firms have multiple IRA types, although Merrill Edge charges $49.95 to close one.

DRIP Service: Available at both brokerage houses.

Initial Public Offerings: Fidelity offers an IPO subscription center on its website (News & Research -> IPOs). Merrill Edge has no such service.

Periodic Mutual Fund Investing: Recurring purchases of mutual funds can be established at either broker-dealer in this survey.

Fractional Shares: Only Fidelity has it.

Winner: Fidelity

Recommendations

Mutual Fund Trading: Fidelity has more mutual funds, so it receives our endorsement.

Long-Term Investors & Retirement Savers: Fidelity and Merrill Edge are both strong here. We lean toward Fidelity because it has annuities and zero fees on its individual 401k accounts.

Small Accounts: Merrill Edge requires a $1,000 deposit to start its automated program. Fidelity has no minimum to open its robo program and starts investing once the account reaches $10. Self-directed traders will find lower trade minimums with Fidelity’s fractional-share service. For IRAs, Fidelity has no closeout fee.

Beginners: We endorse Fidelity for its no-minimum robo accounts.

ETF/Stock Trading: Fidelity has stronger stock research.

Fidelity vs Merrill Edge Summary

Despite Merrill Edge’s connection to Bank of America, Fidelity is the clear outperformer in this comparison.

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