Merrill Edge vs. Robinhood: Which Broker Is Right for You?
Review
Updated
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If you're looking for a new brokerage account to buy and sell stocks and other investments, there is no shortage of choices available to you. Two of the most popular brokerages right now are Merrill Edge, which is Bank of America's brokerage arm, and Robinhood, which pioneered zero-commission investing and a user-friendly approach to buying stocks.
While both of these are solid choices for many people, neither one is a great fit for everyone. There are some big differences between the two, and in this Merrill Edge vs. Robinhood comparison, we'll take a closer look at these, as well as the similarities, to help you determine which (if either) is the best option for you.
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Rating
Rating image, 4.5 out of 5 stars.
4.5/5
Our ratings are based on a 5 star scale.
5 stars equals Best.
4 stars equals Excellent.
3 stars equals Good.
2 stars equals Fair.
1 star equals Poor.
We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
= Best
= Excellent
= Good
= Fair = Poor |
Rating
Rating image, 4.5 out of 5 stars.
4.5/5
Our ratings are based on a 5 star scale.
5 stars equals Best.
4 stars equals Excellent.
3 stars equals Good.
2 stars equals Fair.
1 star equals Poor.
We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
= Best
= Excellent
= Good
= Fair = Poor |
| Commissions |
Commissions |
Commissions |
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Account Minimum |
Account Minimum |
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Robinhood does something we typically don't see from stock brokers. It matches all customer IRA deposits 1%. It matches Robinhood Gold members deposits 1% and 3% on taxable and retirement accounts. It's the opposite of a commission: it's extra cash in your accounts. The catch is you need to keep deposits in Robinhood accounts for years to earn your full match. It's worth keeping in mind when weighing Robinhood's fees vs. other brokers'.
Like most brokers, both Merrill Edge and Robinhood offer zero-commission stock trading, and no monthly maintenance fees. But that's where the similarities end on fee structures.
Robinhood has a big advantage for options traders, as it is one of the only brokers where investors can buy and sell options commission-free. Merrill Edge charges a per-contract fee of $0.65, which is in line with most of its peers. Plus, Robinhood offers commission-free cryptocurrency trading, while Merrill Edge doesn't offer cryptocurrencies at all.
On the other hand, Merrill Edge has a standard $19.95 commission for mutual fund investments and offers thousands of funds on a no-transaction-fee (NTF) basis, while Robinhood doesn't support mutual fund investments at all.
LEARN MORE: Best Options Trading Platforms
It's also worth noting the difference in account transfer fees, as there may come a time when you want to move your account to another broker. Merrill Edge charges a $49.95 fee for a full account transfer, while Robinhood is a bit higher at $100.
| Merrill Edge | Robinhood | |
|---|---|---|
| Stock & ETF commissions | $0 | $0 |
| Options commissions | $0.65/contract | $0 |
| Crypto commissions | N/A | $0 |
| Mutual fund commissions | $19.95 | N/A |
| Account transfer fee | $49.95 | $100 |
| Account maintenance fee | $0 | $0, or $5 monthly for Robinhood Gold |
Merrill Edge and Robinhood both offer stocks, ETF, and options on their respective platforms, but that's where the similarities end.
For one thing, Robinhood offers the ability to buy fractional shares of stock, which can be a big perk for newer investors who may not have enough available cash to buy a full share of some of their favorite companies. Robinhood also offers the ability to buy and sell several different cryptocurrencies, and most bank-affiliated brokers like Merrill Edge do not.
On the other hand, Merrill Edge is the only one of the two that offers mutual funds and bonds through its platform. And because Merrill Edge is part of Bank of America, investors can buy CDs if they want a stable income investment.
It's also worth pointing out that neither platform offers futures or foreign currency (forex) trading, so if these are part of your investing strategy, you'll need to look elsewhere.
| Merrill Edge | Robinhood | |
|---|---|---|
| Stocks and ETFs | Yes | Yes |
| Fractional shares | No | Yes |
| Options | Yes | Yes |
| Mutual funds | Yes | No |
| CDs | Yes | No |
| Bonds | Yes | No |
| Futures | No | No |
| Crypto | No | Yes |
| Currencies (Forex) | No | No |
We recommend comparing brokerage options to ensure the account you're selecting is the best fit for you. To make your search easier, here's a short list of our best trading platforms of 2025.
| Broker | Best For | Commissions | Learn More |
|---|---|---|---|
Rating image, 4.5 out of 5 stars.
4.5/5
Our ratings are based on a 5 star scale.
5 stars equals Best.
4 stars equals Excellent.
3 stars equals Good.
2 stars equals Fair.
1 star equals Poor.
We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
= Best
= Excellent
= Good
= Fair = Poor |
Managing your finances under one roof | $0 for stocks,¹ $0 for options contracts⁴ |
Learn More for SoFi Active Investing
On SoFi Active Investing's Secure Website. |
Rating image, 4.0 out of 5 stars.
4.0/5
Our ratings are based on a 5 star scale.
5 stars equals Best.
4 stars equals Excellent.
3 stars equals Good.
2 stars equals Fair.
1 star equals Poor.
We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
= Best
= Excellent
= Good
= Fair = Poor |
Low mutual fund fees. | $0 per trade |
Learn More for J.P. Morgan Self-Directed Investing
On J.P. Morgan Self-Directed Investing's Secure Website. |
|
Rating image, 4.5 out of 5 stars.
4.5/5
Our ratings are based on a 5 star scale.
5 stars equals Best.
4 stars equals Excellent.
3 stars equals Good.
2 stars equals Fair.
1 star equals Poor.
We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
= Best
= Excellent
= Good
= Fair = Poor |
Low fees on stocks, ETFs, crypto, and options | $0 for stocks, ETFs, and options |
Learn More for Robinhood
On Robinhood's Secure Website. |
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Robinhood offers more account types than it used to. You can open a taxable brokerage account, a Roth IRA, or a traditional IRA. Robinhood Gold members can apply for the Robinhood credit card to open a credit account. Robinhood's IRAs are unique in that Robinhood offers customers 1% match on deposits. So when you deposit $1,000, Robinhood adds $10.
Merrill Edge offers a wide variety of account types that will meet the needs of most customers. In addition to standard brokerage accounts, Merrill Edge allows customers to open joint accounts, retirement accounts (including small business accounts like SEP IRA and SIMPLE IRA), custodial accounts like UGMA and UTMA, as well as 529 college savings plans.
What's more, because it is a subsidiary of Bank of America, Merrill Edge investors can open and integrate Bank of America checking and savings accounts. Both can be accessed through the Merrill Edge desktop and mobile portals, and money can be seamlessly transferred between brokerage and bank accounts. It's a convenient all-in-one offering that Robinhood lacks.
READ MORE: Best Online Stock Brokers for Beginners
| Merrill Edge | Robinhood | |
|---|---|---|
| Taxable brokerage | Yes | Yes |
| Joint tenant | Yes | Yes |
| Margin | Yes | Yes |
| Robo-advisor | Yes | No |
| Traditional IRA | Yes | Yes |
| Roth IRA | Yes | Yes |
| Other IRA | Yes | No |
| Custodial | Yes | No |
| Checking | Yes | No, but offers Spending account |
| Savings | Yes | No, but offers brokerage sweeps |
| Credit card | Yes | Waitlist |
Both Merrill Edge and Robinhood have highly rated apps that are functional and easy to use, although Robinhood is clearly the mobile-first platform. Investors who prefer to use an app to simply buy and sell stocks and options often find Robinhood to be one of the most user-friendly apps in the market.
Merrill Edge's investing app holds ratings of 4.6 and 3.3 out of 5 stars on the App Store and Google Play store, respectively. Robinhood's ratings are 4.2 and 4.1, but with a big asterisk, as its ratings were significantly higher prior to the "meme stock" craze of early 2021, when it was forced to suspend trading in certain volatile stocks to the disappointment of many customers.
Merrill Edge reviews often call out the ability to seamlessly integrate with other Bank of America accounts and the many features of the app. Robinhood reviews often cite the user-friendliness of the app.
Robinhood offers lots of educational investment articles through Robinhood Learn, its educational desktop platform. Articles are bite-sized and plentiful. That said, Robinhood's advanced mobile and desktop charts are limited to Gold subscribers. Merrill Edge offers the MarketPro desktop trading platform that offers a fully customizable trading layout (it comes with plenty of bells and whistles) at no added cost, which might be more appealing to sophisticated investors.
RELATED: Best Free Stock Trading Apps
Both of these are excellent brokerage options, but they are clearly targeted to different types of customers. Merrill Edge is the more well-rounded of the two, aiming to provide investment solutions that meet the needs of most investors. Robinhood caters to active traders, though members may also prefer it for its unique IRA match, especially Gold members.
Robinhood is the better choice for your needs if:
Merrill Edge is the better choice for your needs if:
Uncover the names of the select brokers that landed a spot on Motley Fool Money's shortlist for the best online stock brokers. Our top picks pack in valuable perks, including some that offer $0 commissions and big bonuses.
On Robinhood's Secure Website.
2025 Award Winner
A top pick for beginners, Robinhood combines $0 commission trades, an easy-to-use app, and a rare retirement deposit match.
$0 for stocks, ETFs, and options
$0
On Robinhood's Secure Website.
Merrill Edge offers customers fraud protection. If someone else uses your account without permission, you're covered. You can enable authorization codes, which add another layer of security to your account.
Yes. It's not quite as user-friendly as Robinhood, but few apps are. Merrill Edge is special in that it integrates with Bank of America accounts to offer users an all-in-one bank brokerage platform. Beginner investors will enjoy Merrill Edge's commission-free stock trading; it's cheap to trade small amounts. Just know Merrill Edge doesn't offer fractional share trading; you can't buy fractions of stocks.
We're firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers. Motley Fool Money does not cover all offers on the market. Motley Fool Money is 100% owned and operated by The Motley Fool. Our knowledgeable team of personal finance editors and analysts are employed by The Motley Fool and held to the same set of publishing standards and editorial integrity while maintaining professional separation from the analysts and editors on other Motley Fool brands. Terms may apply to offers listed on this page.
Robinhood disclosure
All investments involve risk and loss of principal is possible.
Securities are offered through Robinhood Financial LLC, member FINRA/SIPC. Cryptocurrency services are offered through an account with Robinhood Crypto, LLC (NMLS ID 1702840). Robinhood Crypto is licensed to engage in virtual currency business activity by the New York State Department of Financial Services. Cryptocurrency held through Robinhood Crypto is not FDIC insured or SIPC protected. For more information see the Robinhood Crypto Risk Disclosure.
Trades of stocks, ETFs and options are commission-free at Robinhood Financial LLC. Other fees may apply. Please see Robinhood Financial’s Fee Schedule to learn more.
Fractional shares are illiquid outside of Robinhood and are not transferable. Not all securities available through Robinhood are eligible for fractional share orders. For a complete explanation of conditions, restrictions and limitations associated with fractional shares, see the Fractional Shares section of our Customer Agreement.
Robinhood Gold is an account offering premium services available for a $5 monthly fee. Not all investors will be eligible to trade on Margin. Margin investing involves the risk of greater investment losses. Additional interest charges may apply depending on the amount of margin used. Bigger Instant Deposits are only available if your Instant Deposits status is in good standing.
Investing is risky. Bonus offers subject to terms and conditions, visit robinhood.com/hoodweek for more information. Margin is not suitable for all investors. Robinhood Gold is offered through Robinhood Gold LLC and is a subscription offering services for a fee. Brokerage services offered through Robinhood Financial LLC (member SIPC), a registered broker dealer.
SoFi Disclosure:
INVESTMENTS ARE NOT FDIC INSURED • ARE NOT BANK GUARANTEED • MAY LOSE VALUE
Value Prop Disclosures
Promotion Disclosures
J.P Morgan Disclosure
INVESTMENT AND INSURANCE PRODUCTS ARE: NOT A DEPOSIT • NOT FDIC INSURED • NO BANK GUARANTEE • MAY LOSE VALUE
