ETRADE and Merrill Edge both offer $0 commission trading, full retirement account coverage, and strong research — but they serve different investor profiles. **ETRADE (now part of Morgan Stanley) is the better choice for active traders who need Power E*TRADE’s advanced options tools, futures access, and deeper platform capabilities. Merrill Edge is the better choice for Bank of America customers who benefit from Preferred Rewards integration.**
E*TRADE vs Merrill Edge: Quick Comparison
| Feature | E*TRADE | Merrill Edge |
|---|---|---|
| Stock/ETF commissions | $0 | $0 |
| Options commissions | $0.65/contract | $0.65/contract |
| Futures trading | Yes ($1.50/contract) | No |
| Account minimum | $0 | $0 |
| Fractional shares | Yes | Yes |
| Trading platform | Power E*TRADE | Merrill Edge MarketPro |
| Research | Morgan Stanley | BofA Securities (Merrill Lynch) |
| Preferred Rewards | No | Yes (BoA banking integration) |
| Checking account | No | Bank of America branches |
| Mobile app | Power E*TRADE mobile (4.7/5) | 4.6/5 (App Store) |
| Robo-advisor | Core Portfolios (0.30%, $500 min) | Merrill Guided Investing (0.45%, $1,000 min) |
Fees and Commissions
Both brokers charge $0 for stock and ETF trades, and $0.65 per options contract — identical pricing. The key fee difference is futures:
- E*TRADE: $1.50 per futures contract (Merrill Edge does not offer futures)
- Robo-advisor fees: E*TRADE Core Portfolios at 0.30% is cheaper than Merrill Guided Investing at 0.45%
For stock and options traders, fees are equal. Preferred Rewards Platinum Honors members at Merrill Edge get up to 100 free trades per month — but at $0 commissions, this benefit is largely symbolic for most investors.
Trading Platforms
ETRADE — Power ETRADE: Widely considered one of the best retail options trading platforms. Features include:
- Options profit/loss charts and expiration visualizations
- Options strategy screener (covered calls, spreads, iron condors)
- Paper trading mode for practicing strategies
- Futures trading with streaming quotes
- Power E*TRADE mobile app replicates desktop functionality
Merrill Edge — MarketPro: A capable platform with real-time streaming data, advanced charting, and options chains. It handles the needs of moderate active traders well. However, it lacks futures trading, paper trading mode, and the depth of Power E*TRADE’s options analysis tools.
Winner: E*TRADE for active and options traders; Merrill Edge for moderate traders who value the BoA integration.
Research and Analysis
E*TRADE includes Morgan Stanley equity research, covering approximately 2,500 stocks globally. Morgan Stanley is one of the top investment banks, and the research quality is excellent.
Merrill Edge includes BofA Securities research (formerly Merrill Lynch Research), widely regarded as one of the best equity research departments on Wall Street. Coverage spans thousands of stocks internationally.
Both offer independent research from Morningstar and other third parties. Research quality is a genuine tie — both are Wall Street institutional-grade research available to retail investors at no extra charge.
Preferred Rewards at Merrill Edge
Merrill Edge’s Preferred Rewards program is its most distinctive advantage:
| Tier | Required Assets | Credit Card Bonus | Free Trades/Month |
|---|---|---|---|
| Gold | $20,000 | +25% | 30 |
| Platinum | $50,000 | +50% | 60 |
| Platinum Honors | $100,000 | +75% | 100 |
Example: A Platinum Honors member earning 2% cash back on a BoA credit card effectively earns 3.5% on all purchases. On $40,000 in annual spending, that is $1,400 in cash back — versus $800 without Preferred Rewards. This is worth far more than any platform feature difference.
E*TRADE does not offer a comparable banking rewards program.
Retirement Accounts
Both brokers offer full retirement account coverage: Traditional IRA, Roth IRA, SEP-IRA, SIMPLE IRA, Solo 401(k), and inherited IRA. See the E*TRADE IRA guide and Merrill Edge IRA guide for details.
For 401(k) rollovers, see the E*TRADE 401(k) rollover guide and Merrill Edge 401(k) rollover guide. Both brokers accept incoming rollovers at no cost.
Robo-Advisor Comparison
- E*TRADE Core Portfolios: $500 minimum, 0.30% annual fee, automatic rebalancing, ESG portfolio options. No tax-loss harvesting.
- Merrill Guided Investing: $1,000 minimum, 0.45% annual fee (0.85% with advisor access). Professional portfolio management using ETFs. No tax-loss harvesting at standard tier.
E*TRADE’s robo-advisor is cheaper (0.30% vs 0.45%). For tax-loss harvesting, Betterment or Wealthfront are better options than either.
Who Should Choose Each Broker
Choose E*TRADE if:
- You trade options actively and want Power E*TRADE’s analysis tools
- You want futures trading access
- You want a cheaper robo-advisor (0.30% vs 0.45%)
- You want Morgan Stanley research integration
- You do not bank with Bank of America
Choose Merrill Edge if:
- You bank with Bank of America and qualify for Preferred Rewards
- You value BofA Securities (Merrill Lynch) research
- You want branch access for in-person service at Bank of America locations
- Your investing style is buy-and-hold rather than active trading
For the broader landscape, see Schwab vs Merrill Edge and the best brokerage accounts guide.
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