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 powerful banking rewards through the Preferred Rewards program. 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 Preferred Rewards program at $100K+ combined balances delivers banking perks worth hundreds per year that Schwab can’t match.
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 (Preferred 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 (Preferred Rewards)
$500,000+
9.575%
9.00%-10.25%
Merrill (Preferred Rewards)
Merrill Edge offers margin rate discounts through Preferred Rewards — at higher balances, Merrill can actually beat Schwab.
Bank of America Preferred Rewards — Merrill’s Key Advantage
This program is the #1 reason people choose Merrill Edge. Your combined BofA bank + Merrill investment balances unlock tiered rewards:
Tier
Combined Balance
Credit Card Bonus
Other Perks
Gold
$20,000+
25% bonus
Reduced fees, interest rate booster
Platinum
$50,000+
50% bonus
+ No ATM fees, mortgage discount
Platinum Honors
$100,000+
75% bonus
+ Free trades, Merrill Guided Investing discount
Diamond
$1,000,000+
75% bonus
+ Dedicated advisor, premium service
Diamond Honors
$10,000,000+
75% bonus
+ Highest-tier private banking
What 75% Credit Card Bonus Means
Card
Base Cash Back
With Platinum Honors (75%)
Annual Bonus (on $30K spend)
Unlimited Cash Rewards
1.50%
2.625%
+$337.50
Customized Cash Rewards
3% on chosen category
5.25%
+$337.50 (on $15K category)
Premium Rewards
2% on travel/dining
3.50%
+$225
Total estimated annual bonus
—
—
$500-$900+
If you have $100K+ across BofA and Merrill Edge, Preferred Rewards effectively pays you $500-$900/year in extra credit card cash back alone — on top of fee waivers, rate discounts, and other perks.
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
With Preferred Rewards
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
High (Preferred 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
✗
✓ (with Preferred Rewards)
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 Preferred Rewards members.
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
Preferred Rewards adds $500-$900+/year
Have $100K+ combined BofA/Merrill balances
Platinum Honors tier is extremely valuable
Want BofA Global Research
World-class institutional research
Prefer branch convenience
2,500+ locations inside BofA branches
Use BofA credit cards
75% cash back boost is hard to beat
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 (Preferred 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.
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