Overview of Merrill Edge and Robinhood
Are you looking for a brokerage firm to help you with trading? Robinhood and Merrill Edge are both good choices. They have some things in common, but there are also important differences between them.
Cost
Category 1: Available Products
Traders at Merrill Edge can buy and sell the following:
- Options
- Equities
- Mutual funds
- Closed-end funds
- ETFs
- Bonds and other fixed-income assets
Robinhood does not offer fixed income or mutual funds. But it does have cryptocurrencies and futures.
Merrill Edge doesn’t offer cryptocurrency trading in self-directed accounts, but it has managed accounts. For a fee (0.45% per year), Merrill manages all investments in your account using mutual funds and ETFs.
At Merrill Edge, you can open brokerage or advisory accounts in different tax types: custodial, solo 401(k), joint, individual, 529, and retirement. Robinhood offers only individual or joint taxable accounts and IRAs.
Winner: Merrill Edge
Category 2: Margin Trading
Self-managed accounts at both brokers let you borrow money to buy more investments (except cryptocurrencies). This comes with a cost. Robinhood customers pay 5.25% for debit balances under $50K.
Merrill Edge does not publish its margin rates, which is a major drawback. The borrowing rate depends on the base rate, your account balance, and the total assets you have at Bank of America companies.
Winner: Robinhood
Category 3: Websites
Robinhood’s website is easy to use, but doesn’t have many features. You can make as many watchlists as you want in the right column. There’s a Trending Lists section for categories like healthcare and technology, but no actual screener.
Asset profiles start with simple charts. You can click an expand icon to see a bigger chart with 6 technical indicators and 2 ways to view the chart. The trade ticket has 6 order types. You can’t short stocks.
You can set up an alert for a security but not for a cryptocurrency. The alert icon is on the asset’s profile and on the expanded chart. Alerts can be set for price changes and technical events.
The Merrill Edge website also has alerts, with more options. Here are a few:
- 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 has something Robinhood doesn’t: a browser platform called MarketPro, which can be launched from the Trade tab. MarketPro offers more trading features, better charting, and includes:
- Order ticket with 8 trade types
- Ability to short stocks
- Separate platform for options trading
The Merrill site also has helpful trading tools. The Research tab links to an economic calendar and advanced options tools.
Winner: Merrill Edge
Category 4: Mobile Trading
Both companies have trading apps. Merrill’s app lets you deposit a paper check; Robinhood’s does not.
The Merrill Edge app can trade mutual funds; Robinhood’s can’t. Both apps can trade options. Robinhood’s app can trade cryptocurrencies. The order tickets on the apps match what’s on the websites.
Charts on both apps work like the ones on their websites. Robinhood’s app only shows charts vertically, not horizontally.
Merrill’s app can show charts both ways and has about 50 technical studies, much more than Robinhood’s app.
Merrill Edge’s app, but not Robinhood’s, has research reports on stocks from several analysts like Morningstar, CFRA, and Bank of America Securities.
Winner: Merrill Edge
Category 5: Cash Management
Both brokers also offer banking services. They both offer free ATM withdrawals with a debit card. Merrill Edge, owned by Bank of America, limits this to BofA ATMs. Robinhood uses Allpoint and MoneyPass networks.
Both offer check writing, but in different ways. Merrill Edge gives you a checkbook, while Robinhood lets you request a paper check through the app.
Most banking services are free at both firms, but some things have fees. Merrill charges 2% for using its card outside the U.S. Robinhood charges 1.5% for instant withdrawals to another bank.
Merrill Edge works well with Bank of America. Checking and savings accounts are automatically connected to Merrill Edge on the website and app. Robinhood has round-ups and bonus investments in stocks and crypto for using its debit card, which Merrill doesn’t.
Both offer FDIC insurance. Robinhood pays a high APY (currently
earns 3.75% APY for Gold members and 1.5% for non-Gold).
Winner: Robinhood
Category 6: Additional Services
DRIP Service: Both Robinhood and Merrill Edge offer automatic dividend reinvesting.
Fractional-share Trading: Only Robinhood lets you buy fractional shares.
Fully-paid Securities Lending Program: Only Robinhood lets you earn income by lending your shares.
IRA Service: Merrill Edge has Roth, SEP, Traditional, SIMPLE, and Inherited accounts. It charges $49.95 to close an IRA. Robinhood has fewer IRA types but no closing fee, and offers a 1% match on IRA contributions with no employer needed.
IPO Access: Only Robinhood offers IPO access.
Extended Hours: Both offer pre-market and after-hours trading. Robinhood also offers overnight trading in some stocks and ETFs, plus crypto trading nearly 24/7.
Winner: Robinhood is much better than Merrill Edge in this area.
Incentives
Robinhood:
Up to $200 free stock + 3% IRA match + transfer fee refund at Robinhood.
Merrill Edge: Open a Merrill Edge account and get $0 stock trades.
Recommendations
Beginners: Robinhood is made for beginners.
Mutual Funds: Merrill Edge is the choice here. The website has a fund screener.
Small Accounts: Merrill’s robo program, Guided Investing, needs $1,000 to start, and $20,000 for Guided Investing with an Advisor. Robinhood has no minimums or recurring fees.
Long-Term Investors & Retirement Savers: Robinhood’s 1% free IRA match is unique.
Stock and ETF Trading: Merrill Edge’s MarketPro is the pick, and its research tools are much better than Robinhood’s.
Robinhood vs Merrill Edge Summary
For banking, cryptocurrencies, and IPOs, Robinhood is ahead. For trading tools, Merrill Edge is the better choice.
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Updated on 7/25/2025.
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