Updated
Fact Checked
Eric McWhinnie
Times are changing. Vanguard is no longer just a mutual fund manager, and Merrill Edge isn't an old-school stock brokerage anymore. When you're ready to invest and take the first step by opening a brokerage account, compare Merrill Edge vs. Vanguard. These two companies should be high on your list of potential suitors.
With millions of accounts between them, Vanguard and Merrill Edge have become go-to brokers for traders and long-term investors alike.
Vanguard vs. Merrill Edge: At a glance
| Offer |
|
|
|---|---|---|
| Rating |
Rating image, 4.5 out of 5 stars.
4.5/5
Our ratings are based on a 5 star scale.
5 stars equals Best.
4 stars equals Excellent.
3 stars equals Good.
2 stars equals Fair.
1 star equals Poor.
We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
= Best
= Excellent
= Good
= Fair = Poor |
Rating image, 4.5 out of 5 stars.
4.5/5
Our ratings are based on a 5 star scale.
5 stars equals Best.
4 stars equals Excellent.
3 stars equals Good.
2 stars equals Fair.
1 star equals Poor.
We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
= Best
= Excellent
= Good
= Fair = Poor |
| Commissions |
$0 for online stock and ETF trades |
$0 online; $25 broker-assisted fee for some phone trades of stocks and ETFs from other companies (Less than $1 million) |
| Account Minimum | $0 | $0 |
| Next Steps |
|
|
Merrill Edge vs. Vanguard: Commissions
It's become downright cheap to make a trade at most discount brokers. Vanguard and Merrill Edge are no exception. As you'll see from our full Vanguard review, both have eliminated commissions on stock, option, and ETF trades. You'll still pay a small fee per option contract. Read our Merrill Edge® Self-Directed review to find out why you should opt for a fee-free brokerage.
Merrill Edge vs. Vanguard commission costs
| Broker | Stocks and ETFs | Stock options | Mutual funds |
|---|---|---|---|
| Vanguard | $0 per trade | $0 plus $1.00 per contract | $0 for Vanguard and no-transaction-fee mutuals funds, up to $20 for others |
| Merrill Edge | $0 per trade | $0.65 per contract | $0 for load-waived funds, no-load funds, and no-transaction-fee (NTF) funds; $19.95 for no load transaction fee funds |
Data source: Vanguard and Merrill Edge.
If your portfolio has more funds than individual stocks, fee-free trades will save you money. You can do this through a Vanguard ETF, a Vanguard mutual fund, a Merrill Edge ETF, or a Merrill Edge mutual fund. Brokers have more and more no-transaction-fee (NTF) mutual funds that don't charge a trading fee on every transaction. These two are no exception. Both Vanguard and Merrill Edge have also eliminated commissions for online stock trading. And all ETFs now trade commission-free on either trading platform.
Merrill Edge vs. Vanguard total funds
| Fund type | Vanguard | Merrill Edge |
|---|---|---|
| Total Mutual Funds | More than 6,800 | More than 9,000 |
| No-Transaction-Fee Mutual Funds | More than 3,000 | More than 3,000 |
Data source: Vanguard and Merrill Edge.
TIP
Buying your first stocks: Do it the smart way
Once you’ve chosen one of our top-rated brokers, you need to make sure you’re buying the right stocks. We think there’s no better place to start than with Stock Advisor, the flagship stock-picking service of our company, The Motley Fool. You’ll get two new stock picks every month, plus 10 starter stocks and best buys now. The average stock pick inside Stock Advisor is up 661% — more than 4x that of the S&P 500! (as of 4/15/2024). Learn more and get started today with a special new member discount.
Merrill Edge vs. Vanguard account minimum
We'll keep it simple here: neither Vanguard nor Merrill Edge have minimum account deposits. You read that right. You can open a Vanguard account or a Merrill Edge account with the change you find between your couch cushions.
Merrill Edge vs. Vanguard trading platform
If you're looking to open a brokerage account with a high-powered trading platform, Merrill Edge vs. Vanguard may not give you a clear winner.
A Vanguard brokerage account isn't designed for frequent traders. It makes sense given Vanguard's roots as a broker for long-term investors who are most concerned about cost.
Vanguard uses a simple browser-based interface. Traders can easily buy stocks, options, ETFs, or funds. That said, Vanguard isn't the brokerage for you if you want complex stock option trades or level II quotes. Its mobile app is good enough to place the occasional buy or sell order. But it doesn't offer full platform functionality. The app is available on iOS, Android, Windows, and Kindle Fire.
Merrill Edge offers more functionality with its browser-based solution. You can get streaming quotes through its watch list feature. Merrill Edge MarketPro®, its desktop platform, is a more powerful solution. You get full customization with this trading tool, as well as more charting options, and many ways to show multiple data points on one screen. You can quickly see a stock's P/E ratio, or analyst estimates, for example.
Merrill Edge vs. Vanguard: International stocks and ADRs
Before you ask Siri how to say "limit order" in Spanish, know that you can trade American depositary receipts (ADRs) at Vanguard and Merrill Edge. If you are a trader who wants direct access to a foreign stock market, Vanguard can get you there, but it charges a fee. Merrill Edge doesn't offer international market trading.
Most large foreign companies have an ADR that trades in the United States. Buying shares of international household name companies shouldn't be a problem, regardless of the brokerage you choose. But if you want to buy shares of a Japanese small-cap stock, you'll need a broker that can help you transact on a Japanese stock exchange.
Merrill Edge vs. Vanguard research quality and trading tools
Merrill Edge and Vanguard each offer their brokerage clients a high-quality trading tool and a wealth of research. Both provide a number of screening tools for individual stocks and funds. Vanguard customers get access to excellent resources, market insights, economic analysis, and in-house Vanguard research.
Merrill Edge customers get one very big perk in the form of Bank of America Merrill Lynch Global Research Analysts' stock picks. Merrill Edge also offers third-party research to its clients. The "story" Merrill Edge offers about many of the largest stocks on the market is a helpful function. It gives you a quick introduction to a given stock before you do your own due diligence.
When it comes to human professional help, Merrill Edge vs. Vanguard are more or less on an equal footing. In addition to sophisticated website trading guidance, you can access a financial advisor at either brokerage. Investment advice from a person does not come free. Fees depend on how much money you want help managing. The Vanguard Personal Advisor annual service fee is 0.30% of the managed assets. The Merrill Guided Investing annual service fee is between 0.45% and 0.85% of the managed assets and is assessed based on your balance each month. Minimum balances apply.
Vanguard vs. Merrill Edge: The bottom line
If you want to invest in a wide range of low-cost U.S. and international stock and bond index funds and ETFs, Vanguard might just win your heart. It easily earns a top spot as one of the best online brokers for long-term investors who want to simply manage a portfolio of a few index funds and ETFs.
Of course, if low options costs or highly rated apps and trading platforms are what you're seeking, then Merrill Edge may be a better fit.
The Ascent's best stock brokers
Uncover the names of the select brokers that landed a spot on The Ascent's shortlist for the best online stock brokers. Our top picks pack in valuable perks, including some that offer $0 commissions and big bonuses.
Alternatives to Consider
We recommend comparing brokerage options to ensure the account you're selecting is the best fit for you. To make your search easier, here's a short list of our best trading platforms of 2024.
| Account | Fees | Account Minimum | |
|---|---|---|---|
|
Featured Offer
Rating image, 4.5 out of 5 stars.
4.5/5
Our ratings are based on a 5 star scale.
5 stars equals Best.
4 stars equals Excellent.
3 stars equals Good.
2 stars equals Fair.
1 star equals Poor.
We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
= Best
= Excellent
= Good
= Fair = Poor |
$0 for stocks, ETFs, and options; $5 monthly for Robinhood Gold | $0 | |
Rating image, 4.0 out of 5 stars.
4.0/5
Our ratings are based on a 5 star scale.
5 stars equals Best.
4 stars equals Excellent.
3 stars equals Good.
2 stars equals Fair.
1 star equals Poor.
We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
= Best
= Excellent
= Good
= Fair = Poor |
$0 per trade | $0 | |
Rating image, 5.0 out of 5 stars.
5.0/5
Our ratings are based on a 5 star scale.
5 stars equals Best.
4 stars equals Excellent.
3 stars equals Good.
2 stars equals Fair.
1 star equals Poor.
We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
= Best
= Excellent
= Good
= Fair = Poor |
$0 commission for online U.S. stock and ETF trades; trade fractional shares for as little as $1 | $0 |
FAQs
-
Merrill Edge is owned by Bank of America, so if you're already a BofA banking customer, you might find it convenient to manage your investments through Merrill. Your Merrill Edge investment account balance can also help you qualify for Bank of America Preferred Rewards -- with benefits like a higher APY on a savings account, lower fees for Merrill Guided Investing, and a 25% rewards bonus on some credit cards.
-
All investing involves some risk. Just like any brokerage account or online trading platform, Vanguard investments have a risk of investment loss. The stock market (and bond market) do not always go up, and even if you have a well-diversified investment portfolio, your account balance could still go down on any given day, month, or year.
Our Brokerages Experts
Matt is a Certified Financial Planner™ and investment advisor based in Columbia, South Carolina. He writes personal finance and investment advice for The Ascent and its parent company The Motley Fool, with more than 4,500 published articles and a 2017 SABEW Best in Business award. Matt writes a weekly investment column ("Ask a Fool") that is syndicated in USA Today, and his work has been regularly featured on CNBC, Fox Business, MSN Money, and many other major outlets. He’s a graduate of the University of South Carolina and Nova Southeastern University, and holds a graduate certificate in financial planning from Florida State University.
Fact Checked
Eric McWhinnie
Eric McWhinnie has been writing and editing digital content since 2010. He specializes in personal finance and investing. He also holds a bachelor’s degree in Finance.
Share This Page
We're firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers. The Ascent does not cover all offers on the market. Editorial content from The Ascent is separate from The Motley Fool editorial content and is created by a different analyst team.
All investing is subject to risk, including the possible loss of the money you invest.
For more information about Vanguard funds, visit vanguard.com to obtain a prospectus or, if available, a summary prospectus. Investment objectives, risks, charges, expenses, and other important information about a fund are contained in the prospectus; read and consider it carefully before investing.
Options are a leveraged investment and are not suitable for every investor. Options involve risk, including the possibility that you could lose more money than you invest. Before buying or selling options, you must receive a copy of Characteristics and Risks of Standardized Options issued by OCC. A copy of this booklet is available at theocc.com. It may also be obtained from your broker, any exchange on which options are traded, or by contacting OCC at 125 S. Franklin Street, Suite 1200, Chicago, IL 60606 (888-678-4667 or 888-OPTIONS). The booklet contains information on options issued by OCC. It is intended for educational purposes. No statement in the booklet should be construed as a recommendation to buy or sell a security or to provide investment advice. For further assistance, please call The Options Industry Council (OIC) helpline at 888-OPTIONS or visit optionseducation.org for more information. The OIC can provide you with balanced options education and tools to assist you with your options questions and trading.
Vanguard funds not held in a brokerage account are held by The Vanguard Group, Inc., and are not protected by SIPC. Brokerage assets are held by Vanguard Brokerage Services, a division of Vanguard Marketing Corporation, member FINRA and SIPC.
Vanguard Marketing Corporation, Distributor.
Bank of America is an advertising partner of The Ascent, a Motley Fool company. Matt Frankel has positions in Bank of America. The Motley Fool has positions in and recommends Bank of America, Best Buy, and Target. The Motley Fool has a disclosure policy.
Vanguard disclosures
Visit vanguard.com to obtain a prospectus or, if available, a summary prospectus, for Vanguard and non-Vanguard funds offered through Vanguard Brokerage Services. The prospectus contains investment objectives, risks, charges, expenses, and other information; read and consider carefully before investing.
Options are a leveraged investment and are not suitable for every investor. Options involve risk, including the possibility that you could lose more money than you invest. Before buying or selling options, you must receive a copy of Characteristics and Risks of Standardized Options issued by OCC. A copy of this booklet is available at theocc.com. It may also be obtained from your broker, any exchange on which options are traded, or by contacting OCC at 125 S. Franklin Street, Suite 1200, Chicago, IL 60606 (888-678-4667 or 888-OPTIONS). The booklet contains information on options issued by OCC. It is intended for educational purposes. No statement in the booklet should be construed as a recommendation to buy or sell a security or to provide investment advice. For further assistance, please call The Options Industry Council (OIC) helpline at 888-OPTIONS or visit optionseducation.org for more information. The OIC can provide you with balanced options education and tools to assist you with your options questions and trading.
Commission-free trading of Vanguard ETFs applies to trades placed both online and by phone. All ETFs are subject to management fees and expenses; refer to each ETF's prospectus for more information. Account service fees may also apply. All ETF sales are subject to a securities transaction fee. See the HYPERLINK "https://investor.vanguard.com/investing/transaction-fees-commissions/etfs" Vanguard Brokerage Services commission and fee schedules for full details.
Vanguard funds not held in a brokerage account are held by The Vanguard Group, Inc., and are not protected by SIPC. Brokerage assets are held by Vanguard Brokerage Services, a division of Vanguard Marketing Corporation, member FINRA and SIPC.
Vanguard Marketing Corporation, Distributor of the Vanguard Funds
J.P Morgan Disclosure
INVESTMENT AND INSURANCE PRODUCTS ARE: NOT A DEPOSIT • NOT FDIC INSURED • NO BANK GUARANTEE • MAY LOSE VALUE
Robinhood disclosure
All investments involve risk and loss of principal is possible.
Securities are offered through Robinhood Financial LLC, member FINRA/SIPC. Cryptocurrency services are offered through an account with Robinhood Crypto, LLC (NMLS ID 1702840). Robinhood Crypto is licensed to engage in virtual currency business activity by the New York State Department of Financial Services. Cryptocurrency held through Robinhood Crypto is not FDIC insured or SIPC protected. For more information see the Robinhood Crypto Risk Disclosure.
Trades of stocks, ETFs and options are commission-free at Robinhood Financial LLC. Other fees may apply. Please see Robinhood Financial’s Fee Schedule to learn more.
Fractional shares are illiquid outside of Robinhood and are not transferable. Not all securities available through Robinhood are eligible for fractional share orders. For a complete explanation of conditions, restrictions and limitations associated with fractional shares, see the Fractional Shares section of our Customer Agreement.
Robinhood Gold is an account offering premium services available for a $5 monthly fee. Not all investors will be eligible to trade on Margin. Margin investing involves the risk of greater investment losses. Additional interest charges may apply depending on the amount of margin used. Bigger Instant Deposits are only available if your Instant Deposits status is in good standing.
Fidelity disclosure
Fractional share quantities can be entered out to 3 decimal places (.001) as long as the value of the order is at least $1.00. Dollar-based trades can be entered out to 2 decimal places (e.g. $250.00)