Wells Fargo vs Merrill Lynch in 2024


Overview of Merrill Edge and WellsTrade


Merrill Edge and WellsTrade are both owned by major banks—Bank of America and Wells Fargo, respectively. However, their similarities end there. Let's compare these two brokerage firms and see which one offers better value.


Research & Education Tools


Merrill Edge provides a wide range of educational materials that benefit both seasoned and beginner traders. These resources include free equity reports, videos, webinars, and articles. The website also offers tools and calculators for education planning, personal finance, investing, and retirement savings. Additionally, you can find information on taxation, foreign markets, commodities, and debt management. Effective screeners are available for stocks, options, fixed-income, and funds.

WellsTrade also offers screeners for the securities it provides, but some have fewer criteria compared to Merrill Edge’s. Market commentary from Wells Fargo Advisors, an affiliated research firm, is available for free on the WellsTrade site. You can also access market and index information in an easy-to-read format.

Overall, Merrill Edge offers more information and tools, so WellsTrade loses the first round.


Customer Service


Both brokers offer 24/7 customer service over the phone. Neither firm provides online chat, and they lack physical locations for general customer service. However, Merrill Edge has a more comprehensive self-help section on its website, including settings for paperless statements and account management. WellsTrade doesn’t offer internal messaging, while Merrill does. Merrill Edge also provides a phone number for customers outside the U.S., which WellsTrade does not.

Merrill Edge takes the lead here.


Trading Technology


Merrill Edge features an easy-to-navigate website with a good menu system at the top. Search fields make it even easier to find what you need. Charting includes comparisons and technical indicators, although full-screen mode is not available. A trade bar called TradeBar appears at the bottom of the site, allowing quick stock and ETF orders. An advanced desktop platform is available for active traders.

WellsTrade does not offer a desktop platform or trade bar. Instead, customers rely on its website, which can be slow to load. Charting is available with drawing tools and technical indicators. Since there’s limited information on the WellsTrade site, navigation isn’t too challenging.

Merrill Edge is the better choice here.


Wells Fargo brokerage review


Mobile Trading


Both firms offer mobile apps. WellsTrade’s app works on Android, Apple, and Windows 10 Mobile devices. It provides market news, account information, mobile check deposit, a watchlist, and alerts. However, its charting feature is basic, and there’s no video business news.

Merrill Edge’s app is available on Apple, Android, and mobile web. It includes funds transfer, bill pay, and mobile check deposit. Charting is better on Merrill’s platform than on WellsTrade’s. Merrill’s app also features business news articles, though it lacks streaming financial news like WellsTrade. Unlike WellsTrade, Merrill has an app for Apple Watch.

Merrill Edge wins again.


The Cost of Trading


WellsTrade charges $0 for stock and ETF trades. Options contracts cost $0.65 each, and placing a trade with a representative costs an extra $25. The broker’s outgoing ACAT fee is $50.

Merrill Edge also charges $0 for stock and ETF trades. Options cost $0.65 per contract, and representative-assisted trades are an additional $25. There’s no annual fee for a brokerage account, but paper statements cost $5 each. Merrill’s account transfer fee is $49.95.

Neither broker requires a minimum deposit to open an account, and there’s no minimum balance requirement or activity level.

This category is a draw.





Mutual Funds and ETFs


Merrill Edge’s mutual fund screener lists 3,909 products available for purchase, with 825 being no-load, no-transaction-fee funds. Selling an NTF fund within three months incurs a $39.95 fee. Funds with a transaction fee cost $19.95.

WellsTrade offers access to 9,716 mutual funds, with 2,530 being no-load and no-transaction-fee funds. The firm charges $35 for transactions of non-NTF funds and has no short-term redemption fees.

WellsTrade wins this round.


Managed Accounts


If you prefer professional management, both firms offer managed accounts. Merrill Edge provides a portfolio called Guided Investing for online customers, costing 45 basis points per year with a $5,000 minimum deposit. It invests in low-cost ETFs.

Both WellsTrade and Merrill Edge offer in-person services at select Wells Fargo and Bank of America locations. Merrill is more transparent about its rates, charging 85 basis points for a diversified portfolio with a $20,000 minimum deposit.

Merrill wins this category.


Alternatives


Broker Review Promotion
Offer
Stock/ETF
Commission
Mutual Fund
Commission
Maintenance
Fee
Annual IRA
Fee
Charles Schwab Get $0 commissions + satisfaction guarantee at Charles Schwab. $0 $49.95 ($0 to sell) $0 $0
Robinhood Free stock up to $200 and 1% IRA match when you open an account. $0 na $0 na
Firstrade Get up to $250 ACAT rebate and $0 commission trades. $0 $0 $0 $0


Summary


Wells Fargo brokerage excelled in one category, there was one tie, and Bank of America Merrill Edge won the remaining five. Merrill is the clear winner. Despite the results, WellsTrade could still be a good option for mutual fund investors.


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Updated on 8/23/2024.