Merrill Edge vs. Fidelity | The Ascent (2024)

FAQs

Is Fidelity or Merrill Edge better? ›

Overall, Fidelity is the lower-cost brokerage, while Merrill Edge combines banking tools with trading. The result is that Fidelity operates with less fees and offers more research tools. 🏆 Winner: Fidelity has a better platform for investors when it comes to account fees, margin rates, and commissions.

Merrill Edge offers low trading fees, including commission-free stock and ETF trades. The account opening process is fast and seamless. The broker is considered highly reliable due to the established reputation of its parent company, Bank of America. It is a good choice for beginner investors.

Are cash management accounts safe? Any assets you hold in your Merrill Cash Management Account ® (CMA account) are protected by the Securities Investor Protection Corporation (SIPC). The SIPC provides up to $500,000 of account protection per client, inclusive of up to $250,000 for cash.

It's exposed for 84% on the Stock Market. In the last 30 Years, the Merrill Lynch Edge Select Aggressive Portfolio obtained a 8.21% compound annual return, with a 13.16% standard deviation.

Merrill Lynch's competitors include First Republic Bank, Fifth Third Bancorp, Capital One, J P Morgan. Merrill Lynch ranks 11th among 7377 competitors.

Merrill Lynch lost two advisor teams that managed nearly $2 billion in combined assets to the independent channel. The departures illustrate the enduring appeal of the independent sector for many wirehouse advisors, who are seeking greater flexibility and control over their practices.

Is Fidelity good for beginners? Fidelity is a great option for beginners, especially since it provides a wealth of educational tools to help new investors get started. It also offers low costs which are especially beneficial to new investors.

Does Merrill Edge have hidden fees? Well, no — clients who don't qualify for Preferred Rewards will have to pay a fee of $2.95 for equity trades and $2.95 +. 65 per contract. This is relatively high considering more and more competitors are offering free trades to all customers.

Merrill Edge has been growing at a pace of around 100,000 accounts per quarter, with an average account size of $110,000, according to a Bank of America executive.

Yes, Fidelity Bank is insured by the FDIC, which insures up to $250,000 per depositor for every FDIC-insured bank. Since the FDIC began operations in 1933, no depositor has ever lost a penny of FDIC-insured deposits.

How do I get my money out of Merrill Edge? ›

How do I withdraw money from my Merrill Edge Self-Directed account? Log in to your account and select Transfer Money & Securities under the Accounts tab. From there, you can select the withdrawal method and follow the on-screen instructions.

U.S. Treasury securities, money market mutual funds and high-yield savings accounts are considered by most experts to be the safest types of investments available.

Merrill Lynch Accounts for High-Net-Worth Individuals

Historically, Merrill Lynch has catered to individuals with assets of $1 million or more, so many Merrill Lynch advisors will be comfortable working with people in the high-net-worth category.

Key return on investment statistics

Average annual return on stocks: 13.8 percent. Average annual return on international stocks: 5.8 percent. Average annual return on bonds: 1.6 percent. Average annual return on gold: 0.8 percent.

Sale to Bank of America

Significant losses were attributed to the drop in value of its large and unhedged mortgage portfolio in the form of collateralized debt obligations. Trading partners' loss of confidence in Merrill Lynch's solvency and ability to refinance money market obligations ultimately led to its sale.

Merrill Lynch & Co. is the former name of a prominent Wall Street investment firm. Since its acquisition by Bank of America (BAC) in 2009, it has become known simply as “Merrill” and operates as a wealth management division of Bank of America.

Fidelity Investments's competitors and similar companies include Franklin Templeton, Voya Financial, Legg Mason, Principal Financial Group, Vanguard, TIAA and Brighthouse Financial. Fidelity Investments (also known as FMR) is a provider of financial services and investment resources.

Merrill Lynch may tout that its roughly 6,500 client associates are essential to the business, but many are leaving the wirehouse because of overwhelming workloads, frustrating working conditions and poor pay, according to news reports.

However, behind the scenes, the firm is paying a hefty price as large numbers of experienced advisors, like Wagner, are leaving for greener pastures. “You're appreciative of some it – the ability to have the scale of the banking platform,” says Wagner on Merrill's ties to Bank of America.

What broker was fired from Merrill Lynch? ›

Former Merrill Lynch broker James Iannazzo, who was arrested and fired in January after a biased tirade at a Connecticut smoothie shop, has applied under a first-time offender program to have the charges dismissed–a request that also puts his case under seal, a supervisor in the presiding court's clerk's office ...

Cons Explained

No access to futures or commodities: Fidelity does not support trading in futures, options on futures, commodities, or currencies, even though you can exchange currencies on the platform.

While Fidelity is privately held and doesn't release financial statements, it's widely regarded as financially solid and stable, with $8 billion of operating income in 2022.

Fidelity offers $0 trading commissions, a selection of more than 3,300 no-transaction-fee mutual funds and top-notch research tools and mobile platform. Its zero-fee index funds and strong customer service reputation are just icing on the cake. when you open a new, eligible Fidelity account with $50 or more.

The range of the markup that Merrill charges is between 0.50% – 2.00%, depending on the maturity of the MLI. A portion of the Merrill markup, which may be discounted by your Advisor, is paid to your Advisor as compensation.

Proprietary research, low commissions, and no annual fees may make a Merrill Edge IRA the smart choice for you. Once you open an IRA, your contributions will grow tax-deferred (traditional IRAs) or tax-free (Roth IRAs) until you retire.

However, through Merrill Lynch Fiduciary Advisory Services, certain designated advisors can work with you to make your investment management plans more efficient and valuable. So, the answer to the question “does Merrill Lynch have fiduciaries?” is: yes, they do.

Summary of Rule of 60 vesting condition

You meet the Rule of 60 if your age plus length of service (computed as full years and completed months) equals 60, with a minimum of 10 years of service and no minimum age. Your service with Merrill Lynch is included for purposes of determining your length of service.

Merrill Edge has no minimum account requirement. Customers with a combined balance of more than $20,000 in eligible investment and cash accounts can qualify for Merrill's rewards program.

Is it safe to keep more than $500000 in a brokerage account? ›

Is it safe to keep more than $500,000 in a brokerage account? It is safe in the sense that there are measures in place to help investors recoup their investments before the SIPC steps in. And, indeed, the SIPC will not get involved until the liquidation process starts.

Fidelity National is currently under evaluation in probability of bankruptcy category among related companies.

You can buy shares in a transaction-fee fund from its principal underwriter or distributor without a Fidelity transaction fee. A fund's sales charges may apply. Fidelity does not charge a transaction fee on a load fund. A fund's own redemption fees may apply.

Merrill Edge Investment Account - Up to $600 Bonus

Use promo code 600ME at account opening. Fund your account with at least $20,000 in qualifying net new assets within 45 days of account opening. Maintain balance for at least 90 days. Cash reward will be determined by the deposited net new assets in your account.

There is a $49.95 fee for fully transferring an account out. No fee for partial transfers. Account closure fee is $49.95 for retirement accounts.

Unlike loans, withdrawals do not have to be paid back, but if you withdraw from your 401(k) account before age 59½, a 10% early withdrawal additional tax may apply, and you may jeopardize your financial security in retirement. It should be a last resort as a source of income.

The Bottom Line. Millionaires have many different investment philosophies. These can include investing in real estate, stock, commodities and hedge funds, among other types of financial investments. Generally, many seek to mitigate risk and therefore prefer diversified investment portfolios.

Over the course of a few weeks in the spring of 2023, multiple high-profile regional banks suddenly collapsed: Silicon Valley Bank (SVB), Signature Bank, and First Republic Bank. These banks weren't limited to one geographic area, and there wasn't one single reason behind their failures.

To feel wealthy, Americans say you need a net worth of at least $2.2 million on average, according to financial services company Charles Schwab's annual Modern Wealth Survey.

Is $5 million enough to retire at 40? ›

Retiring at age 40 is entirely feasible if you have accumulated $5 million by that age. If the long-term future is much like the long-term past, you will be able to withdraw $200,000 the first year for living expenses and adjust that number up for inflation every year more or less forever without running out of money.

You might need $5 million to $10 million to qualify as having a very high net worth while it may take $30 million or more to be considered ultra-high net worth. That's how financial advisors typically view wealth.

If the interest rate on your debt is 6% or greater, you should generally pay down debt before investing additional dollars toward retirement. This guideline assumes that you've already put away some emergency savings, you've fully captured any employer match, and you've paid off any credit card debt.

As an estimate, aim to withdraw no more than 4% to 5% of your savings in the first year of retirement, then adjust that amount every year for inflation.

A high-net-worth investor is someone with $1 million in investable assets. Investable assets are assets that are easily converted to cash, such as stocks and bonds.

According to conventional wisdom, an annual ROI of approximately 7% or greater is considered a good ROI for an investment in stocks. This is also about the average annual return of the S&P 500, accounting for inflation. Because this is an average, some years your return may be higher; some years they may be lower.

Generally speaking, if you're estimating how much your stock-market investment will return over time, we suggest using an average annual return of 6% and understanding that you'll experience down years as well as up years.

After testing 17 of the best online brokers over three months, Fidelity (98.22%) is better than J.P. Morgan Self-Directed Investing (83.12%). Our top pick overall for 2023, Fidelity is a value-driven online broker offering $0 trades, industry-leading research, excellent trading tools and an easy-to-use mobile app.

Fidelity also manages a variety of funds and specializes in retirement planning, but they're also known for its electronic trading platform and life insurance options. Although once its own entity, Merrill Lynch is now under the ownership of Bank of America (BoA).

Is Fidelity a good money management company? ›

Fidelity is one of the most well-rounded brokerages available today, with no commissions on stock or ETF trades and a selection of no-expense-ratio index funds suited to both beginner and active investors.

Merrill Edge Commissions and Fees

Like the rest of the online brokerage industry, Merrill Edge offers unlimited, commission-free trading of stocks, ETFs and options. It also features commission-free trading of certain mutual funds and fixed income investments.

Advisors with Merrill Lynch Wealth Management have received numerous awards for their performance and service in recent years. It placed over 600 advisors on the Forbes list of Best In-State Advisors for 2018, more than any other company.

Merrill Edge has no minimum account requirement. Customers with a combined balance of more than $20,000 in eligible investment and cash accounts can qualify for Merrill's rewards program.

The number of 401(k) millionaires in Fidelity-managed plans is relatively small, just shy of 1.4 percent out of 21.5 million accounts. That segment peaked in 2021, at 442,000, with a median balance of $1.3 million, according to Mike Shamrell, vice president for workplace thought leadership for Fidelity.

What brokerage firms do billionaires use? Many very wealthy individuals use the top brokerage firms, such as Fidelity, Schwab, Vanguard, and TD Ameritrade, among others. They invest in private equity and hedge funds.