Charles Schwab and Merrill Edge are the two biggest full-service brokerages with deep banking integration. Schwab is the standalone investment powerhouse, now with TD Ameritrade’s thinkorswim platform. Merrill Edge is the brokerage attached to Bank of America, offering banking rewards through Bank of America’s BofA Rewards program (formerly Preferred Rewards). If you’re deciding between these two, the choice often comes down to where you bank.
TL;DR:Charles Schwab wins as a standalone brokerage — better platforms, more investment options, lower costs, and international access. Merrill Edge wins if you bank with Bank of America — the BofA Rewards program (formerly Preferred Rewards) adds a credit card rewards bonus of 25% to 75% at $30K+ combined balances, plus other banking perks.
Side-by-Side Overview
Feature
Charles Schwab
Merrill Edge
Stock/ETF commissions
$0
$0
Options per contract
$0.65
$0.65
Mutual funds (no-load, NTF)
4,000+
3,000+
Index fund expense ratios
0.02%-0.03% (Schwab funds)
0.03%-0.10%
Margin rate ($25K)
11.00%-12.00%
11.50%-12.75%
Robo-advisor
Schwab Intelligent Portfolios (FREE)
Merrill Guided Investing (0.45%)
Trading platform
thinkorswim + StreetSmart Edge
Merrill Edge MarketPro
International stocks
✓ (Schwab Global Account)
✗
Fractional shares
✓ (Schwab Stock Slices)
✓ (limited)
Banking integration
Schwab Bank (good)
Bank of America (BofA Rewards)
Branch locations
300+
2,500+ (inside BofA)
Research
Schwab Equity Ratings + Morningstar
Merrill research + BofA Global Research
24/7 support
✓
✓ (limited hours)
Account minimum
$0
$0
Assets under management
$8.5T+
$1.5T+
Commission and Fee Comparison
Fee Type
Charles Schwab
Merrill Edge
US stocks/ETFs
$0
$0
Options (per contract)
$0.65
$0.65
Options exercise/assignment
$0
$0
Mutual funds (NTF)
$0
$0
Mutual funds (transaction)
$49.95
$19.95
Broker-assisted trade
$25
$29.95
Treasury bonds
$0
$0
OTC/penny stocks
$6.95
Free
Wire transfer
$25 outgoing
$25 outgoing
Account transfer (ACAT)
$25
$49.95
Account inactivity
$0
$0
Margin Rates
Loan Amount
Charles Schwab
Merrill Edge
Lower
$25,000
11.075%
11.50%-12.75%
Schwab
$50,000
10.575%
10.75%-12.00%
Schwab
$100,000
10.325%
10.25%-11.50%
Tie
$250,000
10.075%
9.75%-11.00%
Merrill
$500,000+
9.575%
9.00%-10.25%
Merrill
Merrill sets its margin rate from your loan balance and your overall relationship with Bank of America and Merrill, so rates can differ by client.
Bank of America BofA Rewards (Formerly Preferred Rewards) — Merrill’s Key Advantage
This program is the #1 reason people choose Merrill Edge. Your combined BofA bank and Merrill investment balances unlock tiered rewards:
+ Up to $96 a year in streaming credits, $600 mortgage fee reduction
Premier
$1,000,000+
75%
+ Up to $180 a year in streaming credits
What the Credit Card Bonus Means
The bonus is a percentage of the base rewards you earn, so it multiplies your card’s base rate. A card earning 1.5% back would earn 1.65% at Member, 1.875% at Preferred Plus, 2.25% at Preferred Honors and 2.625% at Premier. On $30,000 of spending, the bonus on that card is $45, $112.50, $225 or $337.50 a year. See the BofA Rewards guide for the full tier list.
Schwab’s Banking Integration
Schwab’s banking isn’t as rewarding, but it’s solid:
Feature
Schwab Bank
Bank of America
Checking APY
0.03%
0.01%-0.04%
ATM fee reimbursement
Unlimited worldwide
Varies by account
No foreign transaction fees
✓
With Premium Rewards card
Savings APY
0.45%
0.01%-0.04%
Branch network
300+
4,000+
Linked to brokerage
✓
✓
Loyalty program value
Low
Higher (BofA Rewards)
Schwab’s standout: unlimited worldwide ATM fee reimbursement with the Schwab checking account. This is best-in-class for travelers.
Trading Platforms
Charles Schwab Platform Suite
Platform
Best For
Rating
thinkorswim
Active/options trading
★★★★★
StreetSmart Edge
Intermediate trading
★★★★☆
Schwab.com
Long-term investing
★★★★☆
Schwab Mobile
Mobile trading
★★★★½
Merrill Edge Platform Suite
Platform
Best For
Rating
Merrill Edge MarketPro
Active trading
★★★½☆
MerrillEdge.com
Long-term investing
★★★★☆
Merrill Edge Mobile
Mobile trading
★★★★☆
Platform Head-to-Head
Feature
Schwab (thinkorswim)
Merrill Edge MarketPro
Charting
Advanced (400+ indicators)
Good (standard indicators)
Options analysis
Best-in-class
Adequate
Screeners
Advanced (stock, ETF, options)
Good
Paper trading
✓ (thinkorswim)
✗
Custom studies/scripts
✓ (thinkScript)
✗
Real-time streaming
✓
✓
Level II quotes
✓
✓
Algo/automated trading
✓ (via thinkorswim)
✗
Schwab wins decisively on trading platforms — thinkorswim is miles ahead of MarketPro.
Research and Tools
Feature
Charles Schwab
Merrill Edge
Proprietary ratings
Schwab Equity Ratings (A-F)
Merrill Lynch research
Third-party research
Morningstar, Argus, CFRA, Ned Davis
Morningstar, Lipper
BofA Global Research
✗
✓
Stock screener
✓ (advanced)
✓ (good)
ETF screener
✓ (ETF research center)
✓
Mutual fund screener
✓
✓
Fixed income tools
✓ (BondSource)
✓
Portfolio analysis
✓
✓ (Merrill’s Portfolio Story)
Merrill Edge’s unique advantage: BofA Global Research access (one of Wall Street’s top research departments) is available to Merrill Edge clients.
Retirement and Managed Accounts
Feature
Charles Schwab
Merrill Edge
Traditional IRA
✓
✓
Roth IRA
✓
✓
SEP IRA
✓
✓
SIMPLE IRA
✓
✗
Solo 401(k)
✓
✗
529 plan
✓
✓
Robo-advisor
Schwab Intelligent Portfolios ($0)
Merrill Guided Investing (0.45%)
Robo + advisor access
Schwab Intelligent Portfolios Premium ($30/mo)
Merrill Guided Investing with Advisor (0.85%)
Full-service advisory
Schwab Private Client (varies)
Merrill Lynch Wealth Management (varies)
Robo-Advisor Cost Comparison
Balance
Schwab Intelligent Portfolios
Merrill Guided Investing
Annual Savings
$25,000
$0
$112.50
$112.50
$50,000
$0
$225.00
$225.00
$100,000
$0
$450.00
$450.00
$250,000
$0
$1,125.00
$1,125.00
Schwab’s free robo-advisor is a massive cost advantage. Schwab requires a $5,000 minimum but charges nothing ongoing. Merrill charges 0.45% — that’s $450/year on $100K.
Who Should Choose Each
Choose Charles Schwab If You…
Scenario
Why Schwab Wins
Want the best trading platforms
thinkorswim is the gold standard
Want a free robo-advisor
Schwab Intelligent Portfolios costs $0
Need international stock access
Schwab Global Account
Want the best index funds
Schwab index funds at 0.02%-0.03%
Need more account types
SIMPLE IRA, solo 401(k)
Travel internationally
Unlimited worldwide ATM reimbursement
Trade options actively
thinkorswim options tools are unmatched
Choose Merrill Edge If You…
Scenario
Why Merrill Wins
Bank with Bank of America
BofA Rewards adds a credit card rewards bonus and other perks
Have $100K+ combined BofA/Merrill balances
Preferred Honors tier: 50% card rewards bonus
Want BofA Global Research
World-class institutional research
Prefer branch convenience
2,500+ locations inside BofA branches
Use BofA credit cards
Tier bonus of 10% to 75% on card rewards
Want simple buy-and-hold investing
Merrill’s web interface is clean and simple
Need a wealth management relationship
Merrill Lynch advisors for higher balances
Decision Matrix
Your Priority
Best Choice
Confidence
Best trading platform
Schwab
Very High
Banking rewards
Merrill Edge
Very High
Free robo-advisor
Schwab
Very High
Branch access
Merrill Edge
High
International trading
Schwab
Very High
Research quality
Tie
—
Index fund costs
Schwab
High
Options trading
Schwab
Very High
BofA credit card synergy
Merrill Edge
Very High
Retirement account variety
Schwab
High
The Bottom Line
Factor
Winner
Trading platform
Schwab (thinkorswim)
Commissions
Tie
Robo-advisor cost
Schwab ($0)
Banking rewards
Merrill Edge (BofA Rewards)
Branch network
Merrill Edge (2,500+)
International access
Schwab
Index fund costs
Schwab
Research
Tie
Retirement accounts
Schwab
Travel perks
Schwab (ATM reimbursement)
Overall: Standalone brokerage
Charles Schwab
Overall: BofA banking customers
Merrill Edge
For the full brokerage market comparison including Fidelity, Webull, and Interactive Brokers, see brokerage accounts guide. Schwab has an extensive ETF and index fund selection — see index funds and ETFs guide for how to evaluate fund options. Merrill Edge offers Bank of America integration — see investment strategies for how to structure your overall investment approach across accounts.
WealthVieu researches and writes data-driven personal finance guides using primary sources including the IRS, Bureau of Labor Statistics, Federal Reserve, and Census Bureau.
The content on Wealthvieu is for informational purposes only and should not be considered financial, tax, or investment advice. Consult a qualified professional before making financial decisions. Full disclaimer · Editorial policy
