Can I Day Trade on Merrill Edge?
Merrill Edge provides tools for both day and swing trading, offering attractive commission rates that make it a broker worth considering.
MarketPro®
For short-term traders, Merrill Edge's MarketPro is the go-to choice. Originally a desktop application, it now operates solely as a browser platform. Although day trading can also be done via the broker's website and mobile app, MarketPro offers the most sophisticated tools.
The order ticket on MarketPro provides distinct options for both covering buys and short selling. It supports six order types:
- Market
- Limit
- Stop quote
- Stop quote limit
- Trailing stop quote
- Trailing stop quote limit
For these orders, the duration choices available are either day or GTC (good 'til canceled).
For quicker trading, MarketPro features a rapid-fire ticket with pre-set red and green buttons, facilitating quick actions like:
- Sell/buy
- Sell/buy at the market
- Sell/buy at the ask
- Sell/buy at the bid
This rapid-fire ticket can be linked directly to the charting window; if not visible, activate it by clicking the icon with two horizontal arrows in the chart’s title bar.
Account switching is easily handled via a dropdown menu at the top of either ticket.
MarketPro's charting can be expanded to fill the entire screen and includes various trading tools such as:
- Up Arrow Callout
- Vertical Line
- Fibonacci Arc
- Gann Fan
The platform offers over 100 technical studies, such as:
- Composite Index
- Aroon Oscillator
- Last Price Line
- Variable Moving Average
The charts feature a customizable right-click menu that includes quick buy and sell options, among other useful tools.
Website
The Merrill Edge website also supports distinct options for buy to cover and short sales. It includes four trailing order options, both market and limit.
Available Assets for Short-Term Trading
You can day trade most investment products at Merrill Edge, except for mutual funds. Available products for day trading include stocks, options, ETFs, and fixed income. Costs may vary based on the trading method and asset type.
Commission Schedule
Merrill Edge offers zero commission trades on stocks and ETFs. Options trades cost 65 cents per contract. New bond issues and all types of Treasuries are free to trade. Using a live broker to place a trade adds a $29.95 fee.
Account Types
Merrill Edge provides various account types suitable for day trading. IRA accounts, such as ROTH IRAs and self-employed 401(k)s, do not support margin trading.
Taxable accounts allow the use of leverage through Merrill's margin service, although these accounts must still report all trades to the IRS on Form 1099-B.
Margin
Upgrading to a margin account is possible via Merrill Edge’s website. The necessary forms are found under the Forms & Applications section, accessible from the Help & Settings tab.
Merrill Edge does not publicly list its margin rates anymore. The cost of using margin depends on the base lending rate, the account’s balance, and total deposits with Bank of America, Merrill Lynch, and Merrill Edge.
Webull as a Substitute
Webull offers many features that Merrill Edge lacks for day trading. Notably, Webull provides specific margin details for individual stocks, unlike Merrill’s platforms. For example, here are the day-trading leverage rates for Payoneer Global, Inc.:
Long day-trading leverage: 1.67
Short day-trading leverage: 0.67
Webull also boasts a desktop platform that surpasses MarketPro in terms of user-friendliness and capabilities, offering multiple trading tickets with options for quick trades or advanced setups. Standard features include bracket orders with stop loss and take profit options.
Webull allows day trading of cryptocurrencies, which are free from the pattern-day trading rule requiring a $25k account balance. Options trading at Webull is also cost-effective as it lacks per-contract fees, potentially offering significant savings for frequent traders.
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Updated on 1/1/2025.
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