When it comes to online brokerages, two of the most popular options are Fidelity and Merrill Edge. Both offer a wide range of investment products and services, but there are some key differences between the two that investors should be aware of before making a decision.
Fidelity is the largest online brokerage in the United States, with over $4 trillion in assets under management. It offers a wide range of investment products, including stocks, bonds, mutual funds, and ETFs. Fidelity also offers a variety of investment tools and research, as well as a team of investment professionals who can help investors make informed decisions.
Merrill Edge is a subsidiary of Bank of America, and it offers a more limited range of investment products and services than Fidelity. However, Merrill Edge does offer some unique features, such as the ability to link your brokerage account to your Bank of America checking and savings accounts. Merrill Edge also offers a team of financial advisors who can provide personalized investment advice.
So, which online brokerage is right for you? If you're looking for a wide range of investment products and services, Fidelity is a good option. If you're looking for a more personalized experience, Merrill Edge may be a better choice.
Here is a table that compares the key features of Fidelity and Merrill Edge:
| Feature | Fidelity | Merrill Edge |
|---|---|---|
| Assets under management | $4 trillion+ | $2 trillion+ |
| Number of investment products | 3,000+ | 1,000+ |
| Investment tools and research | Extensive | Limited |
| Financial advisors | Available | Available |
| Account linking | No | Yes |
Ultimately, the best way to decide which online brokerage is right for you is to compare the features and services of each one and see which one best meets your needs.
Fidelity vs Merrill Edge
When it comes to online brokerages, Fidelity and Merrill Edge are two of the most popular options. Both offer a wide range of investment products and services, but there are some key differences between the two that investors should be aware of before making a decision.
- Products: Fidelity offers a wider range of investment products than Merrill Edge, including stocks, bonds, mutual funds, ETFs, and options.
- Services: Fidelity offers a more comprehensive range of investment services than Merrill Edge, including investment advice, financial planning, and retirement planning.
- Fees: Fidelity's fees are generally lower than Merrill Edge's fees, especially for active traders.
- Platform: Fidelity's trading platform is more powerful and feature-rich than Merrill Edge's platform.
- Research: Fidelity offers more in-depth investment research than Merrill Edge.
- Customer service: Fidelity has a better customer service reputation than Merrill Edge.
Ultimately, the best way to decide which online brokerage is right for you is to compare the features and services of each one and see which one best meets your needs. If you're looking for a wide range of investment products and services, low fees, and a powerful trading platform, then Fidelity is a good option. If you're looking for a more personalized experience and don't mind paying higher fees, then Merrill Edge may be a better choice.
1. Products
One of the key differences between Fidelity and Merrill Edge is the range of investment products that they offer. Fidelity offers a much wider range of products than Merrill Edge, including stocks, bonds, mutual funds, ETFs, and options. This gives Fidelity customers more choices when it comes to investing their money and allows them to create a more diversified portfolio.
For example, if an investor is interested in investing in international stocks, they can choose from a wider range of options at Fidelity than they can at Merrill Edge. This allows them to find the stocks that best meet their investment goals and objectives.
The wider range of investment products that Fidelity offers is a major advantage for investors who are looking for a more comprehensive and customizable investment experience.
2. Services
In addition to offering a wider range of investment products, Fidelity also offers a more comprehensive range of investment services than Merrill Edge. These services include investment advice, financial planning, and retirement planning.
- Investment advice: Fidelity offers a variety of investment advice services, including one-on-one consultations with financial advisors, online investment advice, and robo-advisors.
- Financial planning: Fidelity offers a variety of financial planning services, including retirement planning, college savings planning, and estate planning.
- Retirement planning: Fidelity offers a variety of retirement planning services, including retirement income planning, Social Security planning, and Medicare planning.
The more comprehensive range of investment services that Fidelity offers is a major advantage for investors who are looking for a more personalized and comprehensive investment experience.
3. Fees
One of the key differences between Fidelity and Merrill Edge is their fee structures. Fidelity's fees are generally lower than Merrill Edge's fees, especially for active traders. This can make a big difference in the long run, especially for investors who trade frequently.
For example, Fidelity charges $4.95 per trade for online stock trades, while Merrill Edge charges $6.95 per trade. This may not seem like a big difference, but it can add up over time. If an investor makes 100 trades per year, they will pay $495 in trading fees at Fidelity, but $695 in trading fees at Merrill Edge. That's a difference of $200 per year.
The lower fees that Fidelity offers are a major advantage for active traders. Active traders can save a significant amount of money on trading fees by choosing Fidelity over Merrill Edge.In addition to the lower trading fees, Fidelity also offers a number of other fee advantages for active traders. For example, Fidelity offers a tiered pricing structure for active traders, which means that the more trades you make, the lower your trading fees will be. Fidelity also offers a number of other discounts and promotions for active traders.
The lower fees that Fidelity offers are a major advantage for active traders. Active traders can save a significant amount of money on trading fees by choosing Fidelity over Merrill Edge.4. Platform
Fidelity's trading platform is more powerful and feature-rich than Merrill Edge's platform. This is a major advantage for investors who want to have more control over their investments and who want to use advanced trading tools.
For example, Fidelity's trading platform offers a wider range of charting tools and technical indicators than Merrill Edge's platform. This allows investors to conduct more in-depth technical analysis of stocks and other investments.
Fidelity's trading platform also offers more advanced order types than Merrill Edge's platform. This allows investors to execute more sophisticated trading strategies.
The more powerful and feature-rich trading platform that Fidelity offers is a major advantage for investors who want to have more control over their investments and who want to use advanced trading tools.
In addition to the more powerful and feature-rich trading platform, Fidelity also offers a number of other advantages over Merrill Edge, including lower fees, a wider range of investment products, and more comprehensive investment services.
Overall, Fidelity is a better choice for investors who want a more comprehensive and powerful investment experience.
5. Research
In addition to offering a wider range of investment products and services, Fidelity also offers more in-depth investment research than Merrill Edge. This is a major advantage for investors who want to make informed investment decisions.
- Scope and Breadth: Fidelity's research team covers a wider range of companies and industries than Merrill Edge's research team. This means that Fidelity investors have access to more in-depth research on the companies they are considering investing in.
- Quality and Accuracy: Fidelity's research team is known for its high quality and accuracy. Fidelity's analysts are experienced and well-respected in the investment community.
- Accessibility: Fidelity's research is available to all of its customers, regardless of their account size. This means that even small investors have access to the same high-quality research that institutional investors use.
The more in-depth investment research that Fidelity offers is a major advantage for investors who want to make informed investment decisions. Fidelity's research can help investors identify potential investment opportunities, make better investment decisions, and avoid costly mistakes.
6. Customer service
Investors often have questions about their investments and need help understanding their options. When this happens, they want to be able to reach a customer service representative who can answer their questions and help them resolve any issues they may be experiencing.
Fidelity has a better customer service reputation than Merrill Edge. This is based on a number of factors, including:
- Responsiveness: Fidelity's customer service representatives are typically more responsive than Merrill Edge's customer service representatives. They are more likely to answer the phone quickly and resolve issues efficiently.
- Knowledge: Fidelity's customer service representatives are typically more knowledgeable than Merrill Edge's customer service representatives. They are more likely to be able to answer investors' questions and provide helpful advice.
- Courtesy: Fidelity's customer service representatives are typically more courteous than Merrill Edge's customer service representatives. They are more likely to be friendly and helpful, even when dealing with difficult customers.
The better customer service that Fidelity offers is a major advantage for investors. Investors can be confident that they will be able to get the help they need when they need it.
In addition to the better customer service, Fidelity also offers a number of other advantages over Merrill Edge, including lower fees, a wider range of investment products, and more comprehensive investment services. Overall, Fidelity is a better choice for investors who want a more comprehensive and powerful investment experience.
FAQs
When comparing Fidelity and Merrill Edge, there are several common questions that investors have. Here are the answers to some of the most frequently asked questions:
Question 1: Which brokerage is better for beginners?
Both Fidelity and Merrill Edge offer resources for beginner investors. Fidelity has a dedicated learning center with courses, articles, and videos on a variety of investing topics. Merrill Edge offers a range of educational materials and personalized guidance through its financial advisors.
Question 2: Which brokerage has lower fees?
Fidelity generally has lower fees than Merrill Edge, especially for active traders. Fidelity charges $4.95 per online stock trade, while Merrill Edge charges $6.95 per trade. Fidelity also offers a tiered pricing structure for active traders, which means that the more trades you make, the lower your trading fees will be.
Question 3: Which brokerage has a better trading platform?
Fidelity's trading platform is more powerful and feature-rich than Merrill Edge's platform. Fidelity's platform offers a wider range of charting tools, technical indicators, and advanced order types. This makes Fidelity's platform more suitable for active traders and experienced investors.
Question 4: Which brokerage offers better customer service?
Fidelity has a better customer service reputation than Merrill Edge. Fidelity's customer service representatives are typically more responsive, knowledgeable, and courteous than Merrill Edge's customer service representatives.
Question 5: Which brokerage is right for me?
The best brokerage for you depends on your individual needs and investment goals. If you are a beginner investor, both Fidelity and Merrill Edge offer resources to help you get started. If you are an active trader, Fidelity's lower fees and more powerful trading platform may be a better fit. If you are looking for a more personalized experience and don't mind paying higher fees, Merrill Edge may be a better choice.
Ultimately, the best way to decide which brokerage is right for you is to compare the features and services of each one and see which one best meets your needs.
Transition to the next article section: In addition to the FAQs above, there are a number of other factors to consider when choosing between Fidelity and Merrill Edge. These factors include the range of investment products and services offered, the quality of the investment research, and the overall customer experience. By carefully considering all of these factors, you can choose the brokerage that is right for you.
Conclusion
Fidelity and Merrill Edge are two of the most popular online brokerages in the United States. Both offer a wide range of investment products and services, but there are some key differences between the two that investors should be aware of before making a decision.
Fidelity offers a wider range of investment products and services, lower fees, a more powerful trading platform, and better customer service than Merrill Edge. However, Merrill Edge offers a more personalized experience and a wider range of financial planning services.
Ultimately, the best way to decide which online brokerage is right for you is to compare the features and services of each one and see which one best meets your needs.
