Is Interactive Brokers better than Merrill Edge? After testing 15 of the best online brokers over five months, Interactive Brokers (90.58%) is better than Merrill Edge (88.87%). While Interactive Brokers is not well known for its casual investor offering, it leads the industry with low-cost trading for professionals. Through the Trader Workstation (TWS) platform, Interactive Brokers offers excellent tools and an extensive selection of tradeable securities.
StockBrokers.com is committed to the highest ethical standards and reviews services independently. Advertiser Disclosure
Interactive Brokers vs Merrill Edge 2020
|
|
|
|
Exclusive Offer
New clients that open an account today receive a special margin rate Open Account
|
Special Offer
Get up to $600 when you invest in a new Merril Edge Self-Directed account. Open Account
|
|
| Open Account | Open Account |
Overall Rating
| Feature | Interactive Brokers | Merrill Edge |
| Overall | ||
| Interactive Brokers Review | Merrill Edge Review |
Trading Fees
| Feature | Interactive Brokers | Merrill Edge |
| Minimum Deposit | $0.00 | $0.00 |
| Stock Trade Fee (per trade) | N/A | $0.00 |
| ETF Trade Fee | $0.01 | $0.00 |
| Options Base Fee | $0.00 | $0.00 |
| Options Per Contract Fee | $0.65 | $0.65 |
| Mutual Fund Trade Fee | $14.95 | $19.95 |
| Broker Assisted Trades Fee | $30.00 | $29.95 |
| Commissions & Fees | ||
| Winner | check_circle |
Margin Rates
| Feature | Interactive Brokers | Merrill Edge |
| Under $24,999.99 | 3.08% | 10.13% |
| $25,000.00 to $49,999.99 | 3.08% | 9.00% |
| $50,000.00 to $99,999.99 | 3.08% | 9.00% |
| $100,000.00 to $249,999.99 | 2.58% | 7.63% |
| $250,000.00 to $499,999.99 | 3.18% | 7.63% |
| $500,000.00 to $999,999.99 | 2.75% | 7.38% |
| Above $1,000,000.00 | 2.08% | 6.75% |
| Commissions & Fees | ||
| Winner | check_circle |
Account Fees
| Feature | Interactive Brokers | Merrill Edge |
| IRA Annual Fee | $0.00 | $0.00 |
| IRA Closure Fee | $0.00 | $49.95 |
| Returned ACH Fee | N/A | $30.00 |
| Returned Wire Fee | N/A | N/A |
| Stock Certificate Processing Fee | N/A | $500.00 |
| Stock Certificate Delivery Fee | N/A | N/A |
| Paper Statement Fee | N/A | $5.00 |
| Paper Confirmation Fee | N/A | $3.00 |
| Domestic Wire Fee | $10.00 | $24.95 |
| International Wire Fee | $10.00 | $24.95 |
| Commissions & Fees |
Investment Options
| Feature | Interactive Brokers | Merrill Edge |
|
Stock Trading |
Yes | Yes |
|
Fractional Shares |
Yes | No |
|
OTCBB / Pink Sheets |
Yes | Yes |
|
Options Trading |
Yes | Yes |
|
Complex Options Max Legs |
8 | 2 |
|
Futures Trading |
Yes | No |
|
Forex Trading |
No | No |
| Commission-Free ETFs | 96 | all |
|
Mutual Funds (No Load) |
8655 | 2471 |
|
Mutual Funds (Total) |
18210 | 3709 |
|
Bonds (US Treasury) |
Yes | Yes |
|
Bonds (Corporate) |
Yes | Yes |
|
Bonds (Municipal) |
Yes | Yes |
|
Interest Sharing |
Yes | No |
|
Advisor Services |
No | Yes |
|
International Trading |
Yes | No |
| Offering of Investments | ||
| Winner | check_circle |
Order Types
| Feature | Interactive Brokers | Merrill Edge |
|
Order Type - Market |
Yes | Yes |
|
Order Type - Limit |
Yes | Yes |
|
Order Type - Stop |
Yes | Yes |
|
Order Type - Trailing Stop |
Yes | Yes |
|
Order Type - Contingent |
Yes | No |
|
Order Type - MultiContingent |
Yes | No |
|
Order Type - OCO |
Yes | No |
|
Order Type - OTO |
Yes | No |
|
Order Type - OTOCO |
Yes | No |
| Offering of Investments | ||
| Winner | check_circle |
Trading Platforms
| Feature | Interactive Brokers | Merrill Edge |
|
Desktop Platform (Windows) |
Yes | Yes |
|
Desktop Platform (Mac) |
Yes | Yes |
|
Web Platform |
Yes | Yes |
|
Paper Trading |
Yes | No |
|
Trade Journal |
Yes | No |
|
Watch Lists - Total Fields |
494 | 285 |
|
Heat Mapping |
Yes | Yes |
|
AI Assistant Bot |
Yes | No |
| Platforms & Tools | ||
| Winner | check_circle |
Charting Features
| Feature | Interactive Brokers | Merrill Edge |
|
Charting - Trade Off Chart |
Yes | Yes |
|
Charting - Indicators / Studies |
121 | 100 |
|
Charting - Drawing Tools |
9 | 22 |
|
Charting - Historical Trades |
Yes | Yes |
|
Charting - Corporate Events |
Yes | Yes |
|
Charting - Automated Analysis |
No | Yes |
|
Charting - Save Profiles |
Yes | Yes |
|
Charting - Study Customizations |
6 | 8 |
|
Charting - Custom Studies |
No | No |
| Platforms & Tools | ||
| Winner | check_circle |
Day Trading
| Feature | Interactive Brokers | Merrill Edge |
|
Stock Alerts - Basic Fields |
Yes | Yes |
|
Stock Alerts - Advanced Fields |
No | Yes |
|
Streaming Time & Sales |
Yes | Yes |
|
Streaming TV |
Yes | No |
|
Direct Market Routing - Stocks |
Yes | No |
|
Direct Market Routing - Options |
Yes | No |
|
Ladder Trading |
Yes | No |
|
Trade Hot Keys |
Yes | Yes |
|
Level 2 Quotes - Stocks |
Yes | Yes |
|
Level 2 Quotes - Options |
Yes | Yes |
|
Trade Ideas - Backtesting |
Yes | Yes |
|
Short Locator |
Yes | No |
|
Order Liquidity Rebates |
Yes | No |
| Winner | check_circle |
Mobile Trading Apps
| Feature | Interactive Brokers | Merrill Edge |
|
iPhone App |
Yes | Yes |
|
Android App |
Yes | Yes |
|
Apple Watch App |
Yes | Yes |
|
Trading - Stocks |
Yes | Yes |
|
Trading - After-Hours |
Yes | Yes |
|
Trading - Conditional Orders |
Yes | No |
|
Trading - Mutual Funds |
Yes | Yes |
|
Trading - Simple Options |
Yes | Yes |
|
Trading - Complex Options |
Yes | Yes |
|
Trading - Option Rolling |
No | No |
|
Touch / Face ID |
Yes | Yes |
| Winner | check_circle |
Mobile App Features
| Feature | Interactive Brokers | Merrill Edge |
|
Watch List Syncing |
Yes | Yes |
|
Stock Alerts |
Yes | Yes |
|
Charting - After Hours |
Yes | Yes |
|
Charting - Drawing |
No | Yes |
|
Charting - Study Customizations |
Yes | Yes |
|
Heatmapping |
No | Yes |
|
Stream Live TV |
Yes | No |
|
Barcode Lookup |
No | No |
| Mobile Trading | ||
| Winner | check_circle |
Research Overview
| Feature | Interactive Brokers | Merrill Edge |
|
Research - Stocks |
Yes | Yes |
|
Research - ETFs |
Yes | Yes |
|
Research - Mutual Funds |
Yes | Yes |
|
Research - Pink Sheets / OTCBB |
Yes | Yes |
|
Research - Fixed Income |
Yes | Yes |
|
Screener - Stocks |
Yes | Yes |
|
Screener - ETFs |
Yes | Yes |
|
Screener - Mutual Funds |
No | Yes |
|
Screener - Options |
Yes | Yes |
|
Screener - Bonds |
Yes | Yes |
|
Misc - Portfolio Builder |
Yes | Yes |
|
Misc - Portfolio Allocation |
Yes | Yes |
| Research | ||
| Winner | check_circle |
Stock Research
| Feature | Interactive Brokers | Merrill Edge |
|
Stock Research - Reports |
2 | 3 |
|
Stock Research - Earnings |
Yes | Yes |
|
Stock Research - Insiders |
Yes | Yes |
|
Stock Research - Metric Comp |
Yes | Yes |
|
Stock Research - SEC Filings |
Yes | Yes |
|
Stock Research - Social |
Yes | No |
|
Stock Research - Balance Sheet |
Yes | Yes |
|
Stock Research - Cash Flows |
Yes | Yes |
|
Stock Research - News |
Yes | Yes |
|
Stock Research - ESG |
Yes | Yes |
| Research | ||
| Winner | check_circle |
ETF Research
| Feature | Interactive Brokers | Merrill Edge |
|
ETFs - Strategy Overview |
Yes | Yes |
|
ETFs - Top 10 Holdings |
Yes | Yes |
|
ETFs - Sector Exposure |
Yes | Yes |
|
ETFs - Risk Analysis |
Yes | Yes |
|
ETFs - Performance Analysis |
Yes | Yes |
|
ETFs - Ratings |
Yes | Yes |
|
ETFs - Morningstar StyleMap |
No | Yes |
|
ETFs - Reports |
Yes | Yes |
| Research | ||
| Winner | check_circle |
Mutual Fund Research
| Feature | Interactive Brokers | Merrill Edge |
|
Mutual Funds - Strategy Overview |
Yes | Yes |
|
Mutual Funds - Prospectus |
Yes | Yes |
|
Mutual Funds - Reports |
Yes | Yes |
|
Mutual Funds - Fees Breakdown |
Yes | Yes |
|
Mutual Funds - Top 10 Holdings |
Yes | Yes |
|
Mutual Funds - Asset Allocation |
No | Yes |
|
Mutual Funds - Sector Allocation |
Yes | Yes |
|
Mutual Funds - Country Allocation |
Yes | Yes |
|
Mutual Funds - StyleMap |
Yes | Yes |
|
Mutual Funds - 3rd Party Ratings |
Yes | Yes |
| Research | ||
| Winner | check_circle |
Options Trading
| Feature | Interactive Brokers | Merrill Edge |
|
Option Chains - Streaming |
Yes | Yes |
|
Option Chains - Total Columns |
37 | 69 |
|
Option Chains - Greeks |
4 | 5 |
|
Option Chains - Quick Analysis |
Yes | Yes |
|
Option Analysis - P&L Charts |
Yes | Yes |
|
Option Probability Analysis |
Yes | Yes |
|
Option Probability Analysis Adv |
Yes | No |
|
Option Positions - Greeks |
Yes | Yes |
|
Option Positions - Adv Analysis |
Yes | Yes |
|
Option Positions - Rolling |
Yes | Yes |
|
Option Positions - Grouping |
Yes | Yes |
| Platforms & Tools | ||
| Winner | check_circle |
Beginners
| Feature | Interactive Brokers | Merrill Edge |
|
Education (Stocks) |
Yes | Yes |
|
Education (ETFs) |
Yes | Yes |
|
Education (Options) |
Yes | Yes |
|
Education (Mutual Funds) |
No | Yes |
|
Education (Fixed Income) |
Yes | Yes |
|
Education (Retirement) |
No | Yes |
|
Paper Trading |
Yes | No |
|
Videos |
Yes | Yes |
|
Webinars (Monthly Avg) |
20 | 0 |
|
Webinars (Archived) |
Yes | No |
|
Live Seminars |
No | Yes |
|
Progress Tracking |
Yes | Yes |
|
Interactive Learning - Quizzes |
Yes | Yes |
|
Investor Magazine |
Yes | Yes |
| Education | ||
| Winner | check_circle |
Banking
| Feature | Interactive Brokers | Merrill Edge |
|
Retail Locations |
0 | 4300 |
|
Member FDIC |
Yes | Yes |
|
Checking Accounts |
Yes | Yes |
|
Savings Accounts |
No | Yes |
|
Credit Cards |
No | Yes |
|
Debit Cards |
Yes | Yes |
|
Mortgage Loans |
No | Yes |
|
No Fee Banking |
Yes | No |
| Banking | ||
| Winner | check_circle |
Overall
| Feature | Interactive Brokers | Merrill Edge |
| Interactive Brokers Review | Merrill Edge Review | |
| Overall | ||
| Winner | check_circle |
The StockBrokers.com annual broker review assesses more than a dozen different brokers over six months, surfacing the best online stock brokers. This review compares Interactive Brokers vs Merrill Edge. Is Interactive Brokers or Merrill Edge a better online broker?
First, we will make a comparison of the stock and option trading fees for trading with both brokers. Interactive Brokers and Merrill Edge both cost $0 per trade. For options trading, both Interactive Brokers and Merrill Edge charge the same base fee of $0. Option contracts at both of the brokerages are the same at $0.65 each. Note that some brokers charge a per-share fee instead of a flat-fee commission. For a full breakdown of commissions, read our online broker reviews.
For our next comparison of these two brokers, being able to trade the way you want is a must. Merrill Edge supports Stock Trading, Options Trading and Mutual Funds while Interactive Brokers supports Stock Trading, Options Trading, Mutual Funds and Futures Trading. When it comes to mutual funds, Interactive Brokers offers its clients access to 18210 different mutual funds while Merrill Edge has 3709 available funds, a difference of 14,501.
Last but not least, by breaking down important features, tools, etc that each broker offers, we can really help to separate the two. Interactive Brokers has virtual trading, Merrill Edge doesn't. For mobile trading, Interactive Brokers along with Merrill Edge both support the iPhone App, iPad App and Android App. Furthermore, some investors like to bank online, and multiple brokerages provide these services to clients. Clients can have Checking Accounts and Debit Cards at Interactive Brokers while customers at Merrill Edge can have Checking Accounts, Savings Accounts, Debit Cards, Credit Cards and Mortgage Loans.
Overall, between Interactive Brokers and Merrill Edge, Interactive Brokers is the winner.
All pricing data was obtained from a published web site as of 01/20/2020 and is believed to be accurate, but is not guaranteed. For stock trade rates, advertised pricing is for a standard order size of 500 shares of stock priced at $30 per share. For options orders, an options regulatory fee per contract may apply.
