6/7/2023
Merrill Edge is the specialized investment brand of Bank of America, the Merrill Edge brand emerged after the merger of "Bank of America Online Investing" and "Merrill Lynch's".
With the birth of Merrill Edge, the number of Bank of America investors has skyrocketed, as the new platform offers brokerage accounts to a wider range of clients.
Merrill Edge was born in 2010 as a low-cost broker for the retail banking division of its parent company, Bank of America. It was created after Merrill Lynch became a subsidiary of Bank of America.
In this way Bank of America went on to offer brokerage services to clients of all types, regardless of the amount of their wealth. As we will see below the brokerage rates are similar to popular brokers such as TD Ameritrade or similar.
Merrill Edge: Account Types
At Merrill Edge you can invest from your computer or any other electronic device with any of its accounts. The investment platform it uses is Merrill Edge MarketPro, but in order to trade on the platform and start investing you have to open an account, the accounts offered by Merrill Edge are as follows.
General investment accounts
For general investors, they offer three types of accounts:
- Individual brokerage account: indicidual brokerage account to be able to invest any amount of money without restrictions. This account can be used for any investment purpose and to contract any type of product.
- Joint brokerage account: similar to the previous account, but with the possibility of including up to 4 account holders.
- Custodial Brokerage Account: account intended for a minor, to save for his or her studies or other expenses.
Retirement accounts
If your objective is to open a retirement account, Merril Edge offers different accounts:
- Rollover IRA: Maintain the tax-deferred status of your retirement plan while consolidating your assets.
- Roth IRA: Benefit from the potential for tax-free income and greater retirement flexibility during retirement.
- Traditional IRA: Benefit from the potential to reduce current taxes, while enjoying the potential for tax-deferred growth (contributions may be tax deductible).
- Inherited IRA: Roll inherited retirement plan assets into a traditional or Roth inherited IRA in your name.
It is also worth noting the possibility of opening accounts with student plans or small business accounts.
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Merrill Edge Fees and Charges
Merrill Edge's commissions allow us to invest at a very low cost, their commissions are below the US market average.
Below are the fees charged for the most popular trades, a complete list of fees can be found on the Merrill Edge website.
- Stocks and ETFs: $0.00 per trade online or by phone, advisor assisted trades, the trading cost amounts to $29.95.
- Options: In online trading $0 commission applies and we must add $0.65 per contract. In assisted operations $29.95 and $0.65 per contract.
- Mutual funds: $0 per transaction, but if you maintain your position in the fund for less than 90 days a fee of $39.95 will be charged. Transaction funds or TFs do have a buy, sell and exchange fee of $19.95 in online transactions and $29.95 if assisted.
To purchase bonds and other investment instruments see the Merrill Edge website.
How do I open an investment account with Merrill Edge?
The Merrill Edge account is opened online, in a few minutes and without leaving your home. It can only be opened by persons with permanent residence in the USA.
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We have already listed above the Merrill Edge accounts, once you have chosen the one you are interested in, go to the Merrill Edge website and start the process. Below, we explain how to sign up and the documents needed to open an individual account, the rest of the accounts may have small differences.
The process is completed in just 10 minutes and the steps to follow are as follows:
- Choose the type of account
- Add personal information: You will need to provide your name, date of birth, address, nationality, employment and other similar information. You will also need to answer some security questions to make sure you are legally authorized to trade, as well as some questions about your trading experience.
- Identify yourself: the broker's website will ask you to scan and upload your proof of identity. You will be asked for Social Security Number, ITIN Number or valid ID.
- Your account details. Here you can apply for an account with margin loans, as well as a debit card linked to your account. In this step you will be able to create your username and password in case you don't already have them.
- Review details. On this page you have to check that all the details you have entered are correct.
Submitting the application. This is the last and perhaps the most important step. From this point on, you just have to wait for the account to be accepted and activated from Merrill Edge.
Español: Cómo abrir una cuenta de inversión en Merrill Edge (Bank of America)