Overview
Are you searching for a brokerage firm that can improve your trading routine? If so, Robinhood and Merrill Edge
are both worth a close look. While the two firms share some common features, there are also several important differences
between them.
Cost
Category 1: Available Products
Merrill Edge investors can trade the following securities:
- Options
- Equities
- Mutual funds
- Closed-end funds
- ETFs
- Bonds and other fixed-income assets
Robinhood leaves out fixed income and mutual funds. Instead, it adds cryptocurrencies and futures.
Merrill Edge does not provide self-directed cryptocurrency trading, but it does offer managed accounts. For a fee (0.45% per year), Merrill can make all
trading decisions in an account through professionally managed portfolios. Robinhood also provides managed accounts through Robinhood Strategies, although Merrill still has the broader advisory lineup.
Either account style at Merrill Edge, brokerage or advisory, can be opened under several tax
structures. These include custodial, solo 401(k), joint, individual, 529, and retirement. Robinhood
offers individual and joint taxable accounts, custodial accounts, managed accounts, and IRAs.
Winner: Tie
Category 2: Margin Trading
Self-directed accounts at both brokerage firms can use borrowed funds to purchase additional securities (but not
cryptocurrencies). Since this service can be valuable, it naturally comes with a cost. Robinhood
customers pay 5% for debit balances under $50K.
Merrill Edge does not publish a simple flat margin-rate table, which we consider a major drawback in this category. The cost of
borrowing money depends on the base rate, which may change weekly, the account’s debit balance,
and the household’s total assets held within the Bank of America family of companies.
Winner: Robinhood
Category 3: Websites
Robinhood’s website is easy to use, although it is not especially deep. The digital platform places watchlist collections in the right-hand column. An infinite number can be created and edited. Robinhood Legend, the broker’s browser-based desktop platform, also has a scanner with more than 60 filters.
Asset profiles on the site start with simple charts. In the upper-right corner of a chart, there is an expansion icon. Clicking it opens a larger chart with technical indicators and several display options. The trade ticket includes multiple order types. Short selling is not allowed.
Alerts can be created for stocks, ETFs, and cryptocurrencies. The alert icon appears on an asset’s profile and on the enlarged chart. Possible triggers include price changes and other related notifications.
The Merrill Edge website has alerts as well. However, it offers many more choices. Here are some examples we found:
- Volume rises above
- Stock split
- Changes faster than the S&P 500 by x%
- Ratings changes from Morningstar
- Alert me when a distribution occurs
Merrill’s website also includes a browser platform called MarketPro, which can be opened from the appropriate link under the Trade tab. Robinhood now has its own browser-based desktop platform, Robinhood Legend, but MarketPro still provides many strong trading resources. Along with robust charting, MarketPro offers:
- Order ticket with several trade types
- Ability to short securities
- Discrete platform for options trading
Merrill’s main website also includes some useful trading resources. For instance, under the Research tab in the top menu, there are links to many helpful tools, including an economic calendar and advanced option tools.
Winner: Merrill Edge
Category 4: Mobile Trading
The trading comparison continues with the mobile apps from both companies. Merrill’s platform includes a tool for depositing a paper check; Robinhood’s app doesn’t have this useful feature.
The Merrill Edge app can also trade mutual funds, which Robinhood’s app clearly cannot do. Both apps can trade options contracts. Robinhood’s app can trade cryptocurrencies. In both cases, the order tickets from the websites are carried over to the mobile apps.
Charts on both apps use software from their website counterparts. As a result, many of the same charting features are available on mobile, although Robinhood’s app remains simpler than Merrill’s for charting.
On Merrill’s app, charting can be viewed both vertically and horizontally. We counted about 50 technical studies, far more than the number on Robinhood’s standard mobile software.
The Merrill Edge app has research reports on various stocks from several analysts, including Morningstar, CFRA, and Bank of America Securities. Robinhood Gold also provides Morningstar research reports, but Merrill still has the broader research lineup.
Winner: Merrill Edge
Category 5: Cash Management
Neither company in this comparison stops at investing services. Both broker-dealers offer banking services with a wide range of features. Merrill Edge provides cash-management tools through its Bank of America relationship and Merrill accounts, while Robinhood offers spending, banking, and card products through affiliated programs.
In addition to card services, both firms provide ways to access cash, although they do so differently. Merrill Edge offers an actual checkbook, while Robinhood customers can use its spending and banking tools.
Although most banking functions are free at either firm, some cash-related services may carry fees. Merrill, for example, charges an international transaction fee for using its card outside the U.S. Robinhood also charges fees for some money-movement and banking services.
The area where Merrill Edge appears to move ahead is its relationship with Bank of America. Checking and savings accounts are automatically linked to Merrill Edge accounts on the website and mobile app. Robinhood, by comparison, offers its own card and banking products, including the Robinhood Cash Card and Robinhood Gold Card.
Merrill Edge and Robinhood both offer FDIC-insured cash options through banking or sweep arrangements. Robinhood pays a high APY (currently
earns 3.35% APY on eligible cash through its High-Yield Cash program), while Merrill also has FDIC-insured deposit options, including Preferred Deposit for eligible clients.
Winner: Robinhood
Category 6: Additional Services
DRIP Service: Robinhood and Merrill Edge both provide systematic dividend reinvestment.
Fractional-share Trading: Only available with a Robinhood account.
Fully-paid Securities Lending Program: Robinhood customers, but not Merrill Edge clients, can earn extra income by lending out their shares of securities.
IRA Service: Merrill Edge offers Roth, SEP, Traditional, SIMPLE, and Inherited accounts. It charges $49.95 to close an IRA. Robinhood has fewer IRA types but does not charge a fee to close one. It also offers a 3% match on eligible IRA contributions for Gold members and a 1% match without Gold, with no employer required.
IPO Access: Available at Robinhood only.
Extended Hours: Both brokerage firms provide pre-market and after-hours trading. Robinhood also offers 24 Hour Market trading from 8 PM ET Sunday until 8 PM ET Friday for eligible stocks and ETFs. And of course, cryptocurrencies trade nearly 24/7.
Winner: Robinhood
Incentives
Robinhood:
Free stock + 3% IRA match or 2% transfer match at Robinhood.
Merrill Edge: Open a Merrill Edge account and get $0 stock trades.
Recommendations
Beginners: Robinhood was built for beginners.
Mutual Funds: Merrill Edge is the choice here. The website has a fund screener.
Small Accounts: Guided Investing, Merrill’s robo program, requires $1,000 to enroll for growth-focused strategies and $50,000 for income-focused strategies, while
Guided Investing with an Advisor requires $20,000 for growth-focused strategies and $50,000 for income-focused strategies. Robinhood does not have any
minimums or recurring fees for self-directed investing.
Long-Term Investors & Retirement Savers: We like Robinhood’s IRA match, which can be especially valuable for eligible customers.
Stock and ETF Trading: MarketPro is the better choice. Merrill Edge’s research tools are also much better
than Robinhood’s.
Robinhood vs Merrill Edge Summary
For cryptocurrencies, IRA-match incentives, fractional shares, and extended-hours access, Robinhood has the advantage. But for mutual funds, fixed income, research, and traditional trading tools, Merrill Edge
appears to be the better pick.
Free Robinhood Account
Open Robinhood Account
Free Merrill Edge Account
Open Merrill Edge Account
Updated on 7/22/2026.
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