About the company
Merrill Edge is a computerized online marketplace provided by Merrill Lynch, an investment organization. The firm has been around since 1914, but after the 2008 financial crisis, it was sold to Bank of America. Merrill Edge was established 2 years later, in 2010, by the newfound corporation to facilitate online investment through its website.
Merrill is a significant investment corporation with approximately $ 3 trillion in customer assets under management. Only US citizens can participate in Merrill Edge through a US registered entity with the SEC and FINRA. Those who live and work in the United States without full citizenship are specifically excluded.
Merrill Edge has also built a trading platform called MarketPro to provide customers with the greatest possible experience. The system is meant to make trading stocks and shares, ETFs, and options contracts simple and intuitive.
With the large range of tools and layouts available, the software can be considerably tailored to a specific user’s tastes. It is the leading trading solution since it offers no additional fees to clients, powerful charting features, and built-in options analysis.
The smartphone app provides traders with the majority of the capabilities available on their web and offline trading platforms, including the ability to set up bespoke notifications to warn them of market movements. Traders can also get actual market information, news, and quotes, as well as heat maps and interactive charts. Users can also link their Bank of America accounts to their Merrill Edge app to get a more comprehensive fiscal situation.
Whenever customers want to promote long-term growth or short-term earnings during day trades, there are numerous investment possibilities accessible.
Stocks, mutual funds, and ETFs are all available through the investment portfolio. Investor staples including index funds and penny stocks are available as investing choices. The corporation permits consumers to deposit dividends in additional shares, but not to buy partial shares directly.
It does not allow for FX or commodity trading on an individual basis. The firm has also taken a strident anti-cryptocurrency position, prohibiting traders from purchasing cryptocurrency exchange-traded funds (ETFs). Merrill Edge, on the other hand, supports both margin trading and options contracts, having designed its platform to support these types of trading.
Clients will be relieved to learn that the trading account does not charge a commission.
In addition to unlimited free trades, the broker does not earn a fee on options contracts, instead of charging a flat price of $ 0.65 per contract to traders. Annual administration fees will be charged for ETFs and funds. The brokerage has a very competitive pricing structure, which includes a robot and human consultant services with varied pay structures, as well as no account maintenance costs. Options contracts with a broker, as well as stock and ETF purchases, can cost up to $ 29.95 each trade. Annual management fees for Merrill Edge Managed Accounts range from 0.45 percent to 0.85 percent.
Leverage and margin
The system gives margins of more than $100,000, with interest rates based on the amount borrowed:
Merrill Edge charges 3.375 percent interest on balances up to $ 25,000, on top of its regular lending rate of 5.25 percent. As a result, the profit margin is 8.625 percent.
When borrowing between $ 25,000 and $ 99,999, the broker adds 2.25 percent to its 7.5 percent annual base loan rate. Traders who need more than $100,000 in margin must contact Merrill Edge directly. Large amounts of margin are likely to be provided preferential borrowing rates. Conventional leverage is accessible through the firm’s options contracts, which provide up to 1: 100 leverage on equities, as well as pre-leveraged ETFs for day trading.
As a Bank of America-backed service, it should come as no surprise that the broker accepts deposits and withdrawals from a variety of US banks. Transfers from a Bank of America account are truly instantaneous. Other banks’ transactions can take up to three working days. Bank transfers are simplified and completed the same day, but they cost a flat fee of $ 24.95 for each transaction. Customers, on the other hand, are unable to transfer funds using credit or debit cards.
There is no minimum investment, and consumers can keep their balance at $ 0 at any time with a self-managed merchant account. In addition, other than bank transfers, there are no commissions on withdrawals and deposits.
When traders register a stand-alone trading account, the company is giving a new bonus promotion in which customers can earn up to $ 600 in transfer bonuses.
- Traders who deposit more than $ 20,000 in assets into their new account will receive $ 100 in cash.
- A total deposit of $ 50,000 is rewarded in cash of $ 150.
- For traders who invest $ 100,000 or more, Merrill Edge offers a $ 250 cash bonus.
- The highest bonus level is $ 600, which is awarded for deposits of $ 200,000 or more.
Traders must deposit these deposit amounts within 45 days of starting their profile and then keep their balance for at least 90 days to qualify for these bonuses. When traders first open an account, they must also input the promotion code in the web app.
These rewards are insignificant in comparison to the resources required to acquire them. If you have a large amount of money to invest, though, these incentives can be a pleasant no-nonsense bonus for investors to take home.