Are you a beginner looking to venture into the world of online trading? Look no further than Merrill Edge, the best online trading platform for beginners. Owned by Bank of America, Merrill Edge offers a comprehensive suite of online and guided banking, trading, and brokerage services. Since its launch in 2010, Merrill Edge has been a go-to solution for investors seeking a one-stop-shop for all their banking and brokerage needs.
What You Need to Know
Merrill Edge, a global broker with its main office in the US, provides three methods for trading: stocks, social media trading, and forex. The best part? You don’t need to worry about meeting a minimum deposit requirement. With Merrill Edge, you can open a demo account to familiarize yourself with the platform. Whether you’re a novice or an experienced trader, Merrill Edge has got you covered.
Five Reasons to Use It
Merrill Edge stands out as the best online trading platform for beginners for several reasons. Let’s explore them:
Stock Sniffer
On the Merrill Edge platform’s “Research/Stocks” page, you’ll find a reliable stock screener called Stock Sniffer. This powerful tool allows you to create custom screeners based on parameters like price, sector/industry, exchange, dividend yield, P/E ratio, and more. If you prefer prebuilt screeners, you can choose from 29 options like “Warren Buffett Stocks” and “Cash Cows.” With technical screeners from Recognia and the ability to save screeners for future use, you’ll have all the resources you need to make informed investment decisions.
Ideas for Trading Generator
Introduced in August 2020, Idea Builder is a unique feature that sets Merrill Edge apart. Instead of conventional criteria, Idea Builder allows you to search for investment opportunities based on concepts. Explore concepts like “Target Date Funds,” “Big Data,” “Millennials + Gen Z,” “Warren Buffett Stocks,” and “Climate Change Vulnerability.” By integrating underlying research into a visual experience, Merrill Edge ensures that you have access to a wealth of innovative investment ideas.
Screener for Mutual Funds
Navigating the world of mutual funds is made easy with Merrill Edge’s “Research/Mutual Funds” website. You’ll find user-friendly screeners and detailed information on various funding options. Clear identification of no transaction fee (NTF) funds, along with consideration of Morningstar and Lipper ratings, simplifies the decision-making process. Additionally, the Fund Story feature allows for easy comparison of mutual funds and ETFs, taking into account factors like holdings, fees, and ratings.
Management of Cash
Merrill Edge provides a convenient cash sweep program that automatically transfers idle funds to a money market fund. By participating in this program, you can make your money work for you. Alternatively, if you choose not to participate, your cash balances will still earn 0.01 percent interest.
ETF Finder
The “Research/ETFs” tab on Merrill Edge’s platform offers two exclusive ETF screeners. Search for ETFs based on parameters like product type, underlying investment type, Morningstar rating, and more. With Merrill Edge Select ETFs, a streamlined screener curated by Merrill Lynch’s Investment Management & Guidance Group, you’ll have no trouble finding the right ETFs for your investment strategy.
How to Get Started
Creating an account with Merrill Edge is a breeze. Follow these steps:
1. Select a User Account
Before providing any personal information, make sure you choose the appropriate type of brokerage account for your needs. Make your decision on the registration page to proceed.
2. Include Personal Data
Complete the questionnaire for basic information, including your name, birthdate, residence, nationality, and place of employment. The complexity of this stage may vary depending on the broker you choose. You may also be asked about your trading history and required to answer security questions to verify your authorization.
3. Introduce Yourself
During this step, the broker website will ask you to scan and upload identification evidence, such as a passport, ID card, or bank statement. Some brokers may require hard copies of your documents to be sent by mail, which can extend the account opening process.
4. Finish the Agreement
After completing the necessary steps for registration and identification, you’ll have the opportunity to review your data. Once you accept the terms and conditions of the broker, you can sign a virtual contract.
5. Add Money to Your Account
Once your account is verified and opened, you can start trading. Transfer the required amount or any desired amount to your broker account, and you’re ready to go. Congratulations, you’re now a shareholder!
Why Merrill Edge is the Best Online Trading Platform for Beginners
Merrill Edge offers a range of features and benefits that make it the top choice for beginners. Here’s why:
Research and Education
Merrill provides extensive educational resources, including films and articles on retirement planning, personal finance, and investing. With a wide variety of topics covered, you’ll find valuable insights to support your investment journey. Additionally, Merrill incorporates research on stocks, ETFs, and mutual funds from Morningstar and Lipper, offering comprehensive financial statistics, graphics, prospectus material, and research reports. Complete with links to SEC filings, Merrill’s research arsenal empowers you to make informed investment decisions.
Customer Service
Merrill Edge offers robust customer support options, including a 24-hour phone number, online chat, and an extensive FAQ section. You can also get in touch with a live broker or financial advisor for personalized assistance. While additional fees may apply for trades placed through the broker, Merrill Edge ensures that help is just a call away.
Security and Reliability
Ensuring your peace of mind, Merrill Edge prioritizes security and reliability. Features like mobile device biometric entry (fingerprint scanning or face recognition) and soft tokens for high-risk transaction authorization add an extra layer of protection. Lloyd’s of London provides excess Securities Investor Protection Corporation (SIPC) insurance, offering coverage for up to $1 billion in case of any unfortunate events. Merrill Edge’s commitment to security is evident in its track record, with no notable breaches recorded in 2021. Moreover, the platform has experienced no substantial outages, reaffirming Bank of America’s commitment to maintaining a reliable and secure trading environment.
Transparency
Merrill Edge stands out for its transparency when it comes to commissions, fees, and additional charges. The price page provides a breakdown of trading costs for equities, ETFs, options, mutual funds, and fixed income products. Current margin rates are also available. Additionally, you can find a range of account-specific charges and services, further enhancing transparency.
Conclusion
For long-term investors, especially those with existing Bank of America accounts, Merrill Edge is the perfect choice. The Preferred Rewards program offers benefits and discounts that rise with your balance, providing added value and convenience. With excellent proprietary and third-party research, helpful customer support, an easy-to-use trading platform, and a reliable mobile app, Merrill Edge caters to the needs of a wide range of investors.
While Merrill Edge may not be the ideal fit for active traders seeking advanced order types or access to futures, futures options, FX, or cryptocurrencies, it remains a solid option for beginners. If you value simplicity and a product lineup that aligns with your investment goals, Merrill Edge is the best online trading platform to kickstart your investment journey. So why wait? Take the first step towards financial success with Merrill Edge!
Disclaimer: This article is for informational purposes only and should not be considered financial advice. Investing in the stock market involves risks, and it’s essential to conduct thorough research before making any investment decisions.