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Merrill Edge vs Acorns in 2024
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Overview
Acorns targets young investors with a simple, automatic investment plan. But might a traditional online broker like Merrill Edge be a better choice for those same investors? Let's explore.
Pricing
| Broker Fees |
Stock/ETF
Commission |
Mutual Fund
Commission |
Options
Commission |
Maintenance
Fee |
Annual IRA
Fee |
|
Merrill Edge
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$0
|
$19.99
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$0.65 per contract
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$0
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$0
|
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Acorns
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na
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na
|
na
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$3, $5, or $9 per month
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$3, $5, or $9 per month
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Promotion Links
Acorns:
Get Acorns absolutely free and a $20 bonus.
Merrill Edge: Get $0 trades + 65₵ per options contract at Merrill Edge.
What Assets Can Be Traded?
Merrill Edge offers a wide variety of investments:
- Stocks, including penny stocks and over-the-counter stocks
- ETFs
- Closed-end funds
- Options
- Bonds and other fixed-income securities
- Mutual funds
Acorns, on the other hand, offers:
Currently, Acorns only offers a selection of 12 ETFs.
Winner: Merrill Edge
What Investment Services Are Available?
Merrill Edge offers both self-directed accounts and managed accounts. Managed accounts come in two types: one that's more affordable at 0.45% of account value annually, and another premium service at 0.85% with access to personal advisors.
Acorns provides only managed accounts, using a robo-advisor to handle investments in 12 different ETFs.
Winner: Merrill Edge
And What About Software?
Merrill Edge offers an intuitive website with multiple features, though it lacks a trading bar. Its desktop platform MarketPro provides professional-grade tools.
Because Acorns doesn't support self-directed trading, it lacks trading tools but offers a simple, user-friendly website for account management.
Winner: Merrill Edge
What Cash Management Tools Do the Two Brokers Offer?
Acorns offers a debit card with various perks for a $3 monthly fee. Merrill Edge, backed by Bank of America, provides checking services with a debit card, but perks are limited to Bank of America ATMs.
Winner: Draw
Other Services
Dividend Reinvestment Program: Both brokers support automatic dividend reinvesting.
IRAs: Both offer IRAs, but Merrill Edge has more options.
Automatic Mutual Fund Investing: Available through Merrill Edge.
Winner: Merrill Edge
Now, Our Recommendations
Beginners: We recommend Merrill Edge for its comprehensive support and educational resources.
Retirement Savers and Long-Term Investors: Merrill Edge offers more depth and options.
ETF and Stock Trading: Merrill Edge is superior due to its extensive trading tools and options.
Small Accounts: Merrill Edge, with no account minimums and no ongoing fees for self-directed accounts.
Round-Up Investing: Instead of Acorns, saving change manually and investing once a month in Merrill could be more effective.
Promotion Links
Acorns:
Get Acorns absolutely free and a $20 bonus.
Merrill Edge: Get $0 trades + 65₵ per options contract at Merrill Edge.
Merrill Edge vs Acorns - Outcome
While Acorns might attract younger, less serious investors, those seeking a comprehensive investment platform should consider Merrill Edge.
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Updated on 7/24/2024.
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