Using data from our latest annual broker review which tested more than a dozen different online brokers
over six months, we can compare Merrill Edge vs Robinhood to determine which broker is best. Let's dive in.
First, we will break down the commission charges of both brokers for placing stock and options trades. Merrill Edge charges more than Robinhood for placing regular stock trades ($6.95 and $0, respectively). With options, the base fees charged are $6.95 (Merrill Edge) and $0 (Robinhood). Each option contract then costs $0.75 at Merrill Edge and $0 at Robinhood. Instead of flat rate fees, several brokers charge a per-share fee instead. For a complete review of trading charges, read our full online broker reviews
Next, investors want to make sure they can trade the investment vehicle they want. Robinhood supports Stock Trading and Options Trading while Merrill Edge supports Stock Trading, Options Trading and Mutual Funds. As far as mutual funds go, Robinhood trails Merrill Edge by 3,688 total mutual funds, with Merrill Edge offering 3688 and Robinhood offering 0. And, commission free ETFs deserve a comparison, which for investors means access to 0 commission free ETFs at both brokers.
Finally, by comparing the each broker's website and platform features, we can surface interesting differences. Neither Merrill Edge and Robinhood offer virtual trading. For mobile trading, Both Merrill Edge and Robinhood offer clients access to an iPhone App, iPad App and Android App. Online banking is also used by many customers, and multiple full-service brokerages provide these services. Checking Accounts, Savings Accounts, Debit Cards, Credit Cards and Mortgage Loans are available to clients of Merrill Edge while Robinhood offers customers none of these. All factors considered, when it comes to platform tools, research, and mobile trading, unfortunately, neither Merrill Edge nor Robinhood received awards Best in Class - Platforms & Tools, Best in Class - Research and Best in Class - Mobile Trading.
Overall, Merrill Edge comes out on top with 4.50 stars over Robinhood's 2.50 stars.