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Merill Guided Investing: Overall Rating
| Feature | Insider rating (out of 5) |
| Fees | 4.00 |
| Investment selection | 4.25 |
| Access | 4.25 |
| Ethics | 5.00 |
| Customer service | 5.00 |
| Overall score | 4.45 |
Is Merrill Guided Investing Right for You?
Merrill Guided Investing is online brokerage Merrill Edge's automated advisor. Unlike most automated platforms, the Merrill Edge account relies both on computer algorithms and management from a team of Merrill professionals. It requires a $1,000 minimum investment to get started.
However, you'll only get access to Merrill's expert financial advisors for one-on-one advising (Merrill Guided Investing with Advisor) after meeting a steep $20,000 minimum balance requirement and a 0.85% annual management fee.
The best online brokerages offer a range of investment availability (including stocks, bonds, mutual funds, ETFs, and more), account types (individual, joint, IRAs, and custodial), research availability, and educational resources.
Unfortunately, Merrill Guided Investing isn't one of Insider's top picks for online brokerages, nor is it one of the best online brokerages for beginners as its management fees and account minimums tend to be higher than many of its competitors with similar offers — such as Betterment and Fidelity Go. But that doesn't mean it's necessarily a bad option for you.
Merrill Guided Investing includes access to ETF and mutual fund strategies, an online dashboard, goal-setting features, and Bank of America and Merrill account integration. But it does have high annual management fees (0.45%) and high minimums.
The account is one of the three key options Merrill offers for hands-off investors: Merrill Guided Investing, Merrill Guided Investing with Advisor, and Merrill Lynch Wealth Management.
Merrill Guided Investing vs. Betterment
Betterment charges lower fees for its standard account, but it doesn't offer as many fund types as Merrill (Betterment mainly offers ETFs, while Merrill Edge utilizes ETFs and mutual funds). Merill Edge charges an annual 0.45% management fee, whereas Betterment only charges an annual 0.25% management fee.
Unlike the Merrill Edge Guided Investing account, however, Betterment gives users the choice of one-on-one advice from human advisors. It's included in its premium account, but you'll have to pay extra for this option if you have a standard account. In addition, Betterment offers features like tax-loss harvesting.
Merrill Guided Investing vs. Fidelity Go
Both Merrill Guided Investing and Fidelity Go specialize in automated portfolio management, but each platform's fees and investment options vary.
Fidelity Go charges no fees for accounts with less than $25,000. Accounts with over $25,000 are charged a 0.35% annual fee, which still beats Merrill Guided's 0.45% annual fee.
Fidelity Go (Fidelity's automated advisor) has lower fees than Merrill Edge, but only users with lower balances can take advantage of the big price cuts. Fidelity Go invests in a portfolio of only mutual funds, whereas Merrill Edge Guided Investing is better for those who want access to both ETFs and mutual funds.
Ways to Invest with Merrill Guided Investing
Automated investment management
The Merrill Guided investing online account is best for beginner investors or for those who don't mind allowing a team of professionals to manage their investments for them. This account formerly carried a $5,000 minimum, but Merrill Edge lowered this requirement to $1,000 on March 22, 2021.
On the other hand, you can build your own personalized portfolio with a Merrill Edge Self-Directed account, which doesn't have an investment minimum and offers unlimited $0 stocks, ETF, and options trades. New individual accounts may also be eligible for a one-time bonus of up to $600.
Its automated account could be ideal for those looking to invest alone, together, or through accounts like IRAs. Merrill Edge supports individual, joint, custodial, retirement, and trust accounts for its automated advisor. But be prepared for its hefty 0.45% advisory fee.
Investment choices
Merrill Edge mainly uses a diversified blend of ETFs and mutual funds when building investor portfolios. But you'll run into some other small fees in addition to the 0.45% advisory fee. For instance, ETF sales include a transaction fee between $0.01 and $0.03 per $1,000 of principal.
Its socially-responsible portfolios could be a great fit for investors looking to positively impact their environment while generating returns. Also known as impact or sustainable investing, Merrill says this form of investing is also good for those who want to invest in companies with responsible social and environmental practices.
Preferred Rewards benefits
Merrill's Preferred Rewards program gives both Merrill Investing and Bank of America account users benefits for reaching certain investment balances (learn more here). There isn't a fee to join the program; you'll just need an active Bank of America checking account.
The program has three tiers:
- Gold: You'll receive a 0.05% discount on Merrill Guided Investing if you've got a three-month combined average daily balance between $20,000 and $50,000.
- Platinum: Three-month combined average daily balances between $50,000 and $100,000 get you a 0.10% discount at this tier.
- Platinum Honors: Balances between $100,000 to $1 million to get a 0.15% discount.
- Diamond: Three-month combined average daily balance between $1 million to $10 million for a 0.15% discount.
Account setup and user interface
When you're first setting up the account, Merrill Edge gives you a variety of investing goals to choose from. These help the automated advisor choose an appropriate asset allocation for you.
The goals include:
- Retirement
- General investing
- Home
- Education
- Family support
- Travel
- Special occasion
- Other large purchase
You'll also need to determine which risk level you're comfortable with. The brokerage uses one of the following five "target asset allocation" categories when creating your portfolio: Conservative, moderately conservative, moderate, moderately aggressive, and aggressive.
Merrill Guided Investing: Is it Trustworthy?
Merrill Edge currently holds an A+ rating with the Better Business Bureau. BBB ratings range from A+ to F, so this rating suggests that Merrill Edge has a strong record of customer engagement.
The bureau considers several factors when rating companies. These include type of business, time in business, customer complaint history, government actions, and licensing issues. Though Merrill Edge's record is clear of any major scandals and lawsuits, the brokerage has closed more than 2,641 complaints in the last 12 months.
The BBB also advises readers not to assume that its ratings guarantee a certain level of reliability or performance within a company. For this reason, it's wise to conduct your own research in addition to its findings.
Merrill Guided Investing — Frequently Asked Questions (FAQ)
Merrill Guided Investing is Merrill Edge's automated investing account. The robo-advisor invests your money into a portfolio of mutual funds and ETFs once you provide information on things like your risk tolerance, investing goals, and time horizon.
The account has a $1,000 minimum and 0.45% annual advisory fee. You'll also have to account for fund expense ratios. There's a steeper price to have one-on-one advice from Merrill financial advisors.
Merrill Guided Investing offers individual, joint, and custodial accounts, and it supports traditional IRAs, Roth IRAs, SEP IRAs, and SIMPLE IRAs.
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Please note: While the offers mentioned above are accurate at the time of publication, they're subject to change at any time and may have changed, or may no longer be available.
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