How to Open a Merrill Edge Account (2026 Step-by-Step Guide)

Merrill Edge is the self-directed investing arm of Merrill, which is owned by Bank of America. For BofA customers it's the obvious place to invest: one login, instant transfers, and balances that count toward BofA's Preferred Rewards program. For everyone else, it's a solid $0-commission broker with good research and one flaw you need to work around.

Merrill Edge pricing

The catch: the cash sweep

When you deposit money or sell something, the cash sits in a sweep until you invest it. At Merrill Edge that sweep pays about 0.01% a year regardless of balance, per NerdWallet. That's close to nothing.

With the Fed's target range at 3.75%-4.00% after its September 16 hike, a money market fund pays several hundred times more. On $10,000 of idle cash, the gap is roughly $350 or more a year.

The fix: after you fund the account, buy a money market fund or Treasury bills for any cash you're not investing right away. It takes one extra trade.

What you need to apply

• Social Security number
• Government-issued photo ID
• Date of birth and physical US address
• Employment details, including whether you're affiliated with a broker-dealer or are a public-company insider
• Financial information: income, net worth, investment experience
• Bank account for funding. Bank of America accounts link instantly.

Step 1: Choose the account type

• Roth IRA: tax-free growth. Best for most people early in their career. See how to open a Roth IRA.
• Traditional IRA: possible deduction now, taxed later
• Rollover IRA: for moving an old 401(k). Use a direct rollover.
• Cash Management Account (CMA) / individual brokerage: taxable, no limits
• Custodial and education accounts for children. Check current availability.

Order of priority for most savers: 401(k) match, then IRA, then taxable.

Step 2: Apply online

Go to Merrill Edge, choose Open an account and select Self-Directed. If you're a Bank of America client, starting from your Online Banking login links the accounts and usually makes the process faster.

You'll answer:

• Personal and employment questions
• Investment objectives and risk tolerance
• Beneficiaries (for IRAs)

Options and margin are separate approvals. You don't need either to buy stocks and ETFs.

Step 3: Fund it

• From Bank of America: instant
• From another bank (ACH): a few business days
• From another broker (ACATS transfer): move holdings in kind so you stay invested. It usually takes about a week. Ask whether Merrill will reimburse your old broker's transfer fee.

Step 4: Put your cash to work

1. Turn on two-factor authentication.
2. Move idle cash into a money market fund. This is the most important step at Merrill.
3. Buy a broad, low-cost index fund or ETF for long-term money.
4. Set up automatic investing on a schedule.

Preferred Rewards: the reason BofA customers choose Merrill

Bank of America's Preferred Rewards program gives benefits such as credit card reward bonuses and banking perks based on your combined balances across BofA deposit accounts and Merrill investment accounts. BofA has been revising its tiers and tier names, so check the current thresholds. If you're close to a tier, moving investments to Merrill can push you over it.

Who Merrill Edge suits

Good fit:

• Bank of America customers who want everything in one place and value Preferred Rewards
• Investors who want strong in-house research from BofA Global Research
• Long-term ETF and index investors willing to manage the cash sweep

Consider alternatives if:

• You keep large cash balances and don't want to move them manually. Fidelity's default sweep pays far more. See Fidelity vs Schwab vs Vanguard.
• You want an IRA match. Robinhood pays 1-3%.
• You're outside the United States. Merrill Edge serves US residents.

Bottom line

Merrill Edge costs nothing to trade and has real research behind it. Just remember that it pays almost nothing on cash unless you act. Buy a money market fund on day one and it holds up well against any major US broker.

Frequently asked questions