Charles Schwab vs Merrill Edge: Which Is Better for ETF Investing in 2026?
Last updated: March 2026 • Charles Schwab Review • Merrill Edge Review
Quick Verdict
Charles Schwab edges out Merrill Edge with a rating of 9/10 vs 8.4/10. Charles Schwab is best for low-cost etf investing, offering commission-free ETF trading and fractional share support. That said, Merrill Edge (bank of america customers) may be the better fit depending on your specific needs and preferences.
Charles Schwab vs Merrill Edge: Side-by-Side Comparison
This comparison table highlights the key differences between Charles Schwab and Merrill Edge across the features that matter most to ETF investors. Both brokers offer strong platforms, but the details reveal meaningful differences that could impact your investing experience and long-term returns.
| Feature | Charles Schwab | Merrill Edge |
|---|---|---|
| Commission-Free ETFs | Yes | Yes |
| Fractional Shares | Yes | Yes |
| Minimum Deposit | $0 | $0 |
| ETFs Available | 2,000+ | 2,100+ |
| Research Tools | Excellent | Excellent |
| Mobile App | Yes | Yes |
| Our Rating | 9/10 | 8.4/10 |
Charles Schwab Overview
A full-service brokerage with zero commissions on ETF trades. Offers proprietary Schwab ETFs with some of the lowest expense ratios in the industry, plus excellent education resources. With access to over 2,000 ETFs and excellent research tools, Charles Schwab is a strong contender for ETF investors who value low-cost etf investing. The platform supports fractional shares, allowing you to invest in any ETF starting from just $1 regardless of the share price. There is no minimum deposit requirement, making it easy to get started.
Charles Schwab Pros
- ✓Zero commissions and no minimums
- ✓Own line of ultra-low-cost ETFs
- ✓Excellent educational content
- ✓Strong banking integration
Merrill Edge Overview
Bank of America's brokerage arm offering seamless integration with BofA banking. Provides commission-free ETF trades and strong research powered by BofA Global Research, ideal for existing Bank of America customers. Offering 2,100+ ETFs with excellent research capabilities, Merrill Edge appeals to investors seeking bank of america customers. Fractional share support means you can diversify across multiple ETFs even with a small initial investment. The $0 minimum deposit removes any financial barrier to getting started.
Merrill Edge Pros
- ✓Tight integration with Bank of America banking
- ✓Access to BofA Global Research
- ✓Preferred Rewards program benefits
- ✓Commission-free ETF trades
Key Differences Between Charles Schwab and Merrill Edge
ETF Selection and Research Tools
Charles Schwab provides access to 2,000+ ETFs with excellent research tools, while Merrill Edge offers 2,100+ ETFs with excellent research capabilities. Merrill Edge offers a wider selection of funds, which is beneficial if you want access to specialized or thematic ETFs alongside your core holdings. Both brokers provide excellent research tools, so you won't sacrifice analytical capabilities with either choice.
Fractional Shares and Minimum Investment
Both Charles Schwab and Merrill Edge support fractional share investing, which is excellent news for beginners who want to start small. You can invest as little as $1 in any ETF on either platform, making it easy to build a diversified portfolio regardless of how much capital you have. This eliminates the need to save up hundreds of dollars just to buy a single share of a popular ETF like VOO.
Trading Costs and Fees
Both Charles Schwab and Merrill Edge offer commission-free ETF trading, which has become the industry standard among major brokerages. You will not pay any fees to buy or sell ETFs on either platform. The real cost difference comes down to the ETFs themselves — their expense ratios. Both platforms provide access to the lowest-cost ETFs from Vanguard, Schwab, and iShares, so your costs will depend on which funds you choose rather than which broker you use. Neither platform charges account maintenance fees or inactivity fees, and both have $0 minimum deposit requirements.
Mobile Experience and Usability
Both Charles Schwab and Merrill Edge offer mobile apps for managing your ETF portfolio on the go. The quality of mobile experience varies considerably between platforms. Charles Schwab (low-cost etf investing) and Merrill Edge (bank of america customers) approach design differently. If you plan to primarily manage your investments from your phone, testing both apps before committing is wise. For long-term ETF investors who only check their portfolio occasionally, the mobile experience matters less than research tools and fund selection.
Which Should You Choose: Charles Schwab or Merrill Edge?
The right broker depends on your specific needs, investing style, and what features matter most to you. Here is our recommendation based on different investor profiles.
Choose Charles Schwab if you want:
- ✓The most comprehensive research and screening tools
- ✓Access to 2,000+ ETFs for maximum fund selection
- ✓Fractional share investing to start with any dollar amount
- ✓A broker that excels at low-cost etf investing
Choose Merrill Edge if you want:
- ✓Best-in-class research and analytical tools
- ✓2,100+ ETFs to choose from
- ✓Fractional share support for flexible investment amounts
- ✓A platform designed for bank of america customers
Our Bottom Line
Overall, we give a slight edge to Charles Schwab (9/10 vs 8.4/10) for most ETF investors, primarily because of its strengths in research tools and low-cost etf investing. However, Merrill Edge is the better pick if bank of america customers is your top priority. Merrill Edge also offers a wider ETF selection with 2,100+ funds. Remember that the most important decision is not which broker you choose — it is that you start investing consistently and stick with it over the long term.
Recommended: This beginner-friendly ETF course on Udemy covers everything from ETF fundamentals to building a recession-proof portfolio in 7 days.
More Broker Comparisons
Not sure Charles Schwab or Merrill Edge is the right fit? Explore our other head-to-head broker comparisons to find the perfect platform for your ETF investing needs.