ConsumersAdvocate.org Rating: 7.5 / 10 (Very good)
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Merrill Edge is an online brokerage house owned by Bank of America Corporation. It's a business unit formed by brokerage house Merrill Lynch (which is also owned by Bank of America) to service customers with less than $250,000 in investment assets. Merrill Edge offers Roth IRAs and a variety of investment options for its account holders.
How is Merrill Edge Roth IRA rated?
Breakdown
5.0/5
IRA Types
4.5/5
Investment Options
4.5/5
Account Features
2.5/5
Fees and Discounts
0.0/5
Reputation and Customer Support
Overall Rating: 3.8 / 5 (Very good)
Merrill Edge has clearly given a lot of thought to how today's consumers prefer to interact with their investment firms. The company invites contact in many ways and at all hours. Its website is informative and easy to navigate. The company also gets high marks for encouraging small investors--people who may just be starting out in their retirement and investment journeys. Its low fees and lack of a minimum required investment are particularly welcoming to younger consumers.
Merrill Edge Roth IRA Account Minimums
IRA Types - 5 / 5
Merrill Edge does not have a minimum initial investment or an account minimum. This is a big help to people who are just beginning their retirement savings journey, both in practical and psychological terms. It allows people to get the feel of--and get in the habit of--investing for retirement without having to put up a great deal of money. We favor policies like this that lower barriers for consumers.
| How much money do you need to start? | 1 |
| How much do you have to keep in your account? | 1 |
Merrill Edge Roth IRA Investment Options
Investment Options - 4.5 / 5
Since we value consumer choice, we favor companies that offer a wide range of investment vehicles. Merrill Edge's line-up of financial products is impressive. The company provides investment products to both conservative and aggressive investors, to both those who value interest and dividends and those who value capital appreciation, to both those who want to direct their own portfolios and those who appreciate the professional management of a mutual fund.
How can I invest my money?
| Mutual Funds | |
| Index Funds | |
| Stocks | |
| Bonds | |
| Money Market Accounts | |
| Certificates of Deposit | |
| ETFs | |
| Options |
Merrill Edge Roth IRA Fees and Commissions
How much do they charge?
Merrill Edge charges an annual custodial fee of up to 0.25% on Roth IRA account balances, with a minimum fee of $50 and a maximum of $100. This fee can be waived for people who sign up for a self-directed IRA and for those who enroll in the company's guided investing programs. There is an annual fee of 0.45% to use its human/robo-advisor hybrid and 0.85% to engage with a personal human advisor. For those who prefer to manage their assets themselves, the firm charges $6.95 per trade, with no limits placed on the size of the trade.
Account Features - 4.5 / 5
Merrill Edge's low fees make the firm a very attractive option for people who want to keep as much of their money invested as possible. Whether you're using the firm's human/robo-advisor hybrid or a traditional human advisor, the company's advice is among the least expensive in the field. Trade costs are also quite modest. The only investors who might feel a bite from the company's fee structure are those who have very small amounts of money in their accounts and who may be subject to the $50 annual fee minimum. However, this fee can be waived if people choose to self-direct their accounts.
Merrill Edge Roth IRA Financial Reputation
Fees and Discounts - 2.5 / 5
Merrill Edge is a newer division of Merrill Lynch, a brokerage that ran into serious financial trouble in 2008 and agreed to be bought out by Bank of America. Merrill Edge was launched in 2010 and, as such, doesn't have a long track record of customer relations or financial stability. FINRA data is not available specifically for Merrill Edge and is impossible to pull from Merrill Lynch's FINRA data. Its financial strength ratings are good, but not stellar.
| What's their Moody's rating? | A3 |
| What's their Standard & Poor's Rating? | A- |
Merrill Edge Roth IRA Online Experience
Reputation and Customer Support - 0 / 5
Merrill Edge was designed from the start to be an online brokerage, and that perspective shows itself in the layout and navigation of the firm's website. Rather than load up their main page with a bewildering number of click options, the page relies heavily on the search bar, which seems well-designed to bring up precisely what the user is looking for. The placement of a chat box on almost every page seems designed to encourage communication and facilitate the flow of information.
What's their website like?
The Merrill Edge website has a clean, uncluttered look and is fairly easy to navigate. Its search function brings up web pages and documents that might otherwise be difficult to find. A chat interface is available on almost every page.
Merrill Edge Roth IRA Methods of Contact
How do I communicate with them?
| App | |
| Phone | |
| Chat | |
| Branch |
Methods of Contact - 5 / 5
Merrill Edge gives consumers multiple ways to communicate with the company. For those who prefer traditional face-to-face communication, the company has branches in 33 states and the District of Columbia. People who would rather communicate by phone or via chat can do so 24/7. This range of consumer choice of communication methods is among the best in the industry.
Merrill Edge Roth IRA Advisors
Advisors - 4.5 / 5
We believe that everyone should have access to competent retirement investment planning, regardless of how much or how little money they have. Merrill Edge's two-tiered advisor structure imposes fairly modest account minimums and fees to use their advisor services. This is a welcome pro-consumer approach.
| What kind of advisors do they have? |
Human Advisors
Robo-Advisors
|
| What should I know about their advisors? | Anyone can open a Merrill Edge account with any amount of money and can place their money in any of the company's investment products. People who have at least $5,000 in their account are eligible for services from the company's human and robo-advisor hybrid, which is branded as Merrill Edge Guided Investing. There's an annual management fee of 0.45% to take advantage of this program. People who have at least $20,000 have the option of working with a personal (human) financial advisor, who is branded as a Merrill Edge Financial Solutions Advisor. Annual fees for that service are 0.85%. |
Merrill Edge Roth IRA Promotions
Promotions - 5 / 5
The cash rewards that have been offered by Merrill Edge may entice some wealthier investors, but don't seem to do much for people who are in the beginning stages of building their retirement assets. However, the promotions that allow people with very modest account balances to get professional investment advice may be particularly useful to those at the start of the retirement investment journey.
What special promotions could save me money?
Merrill Edge has offered cash rewards ranging from $100 to $600 to new account holders who make qualifying deposits of between $20,000 and $200,000. Interested consumers should check the company's website to get the latest information about these and other offers. The firm also sometimes runs special promotions for its investment advisor services.
Company Profile
| Full Name | Merrill Edge Roth IRAs |
| Company Website |
- Offers Roth IRA certificates of deposit (CDs)
- Interest rates are higher than many competitors'
Discover offers a dedicated Roth IRA CD, which can be purchased with maturity dates ranging from 3 months to 10 years. Although Discover does not offer other Roth IRA options, it can be a good choice for people who want CDs to be part of their Roth IRA portfolio.