TradeZero America Promotion
TradeZero Competitor Promotions
Overview of TradeZero and Merrill Edge
While TradeZero is the go-to brokerage firm for active traders, Merrill Edge has a very
sophisticated desktop platform that rivals the best software TradeZero has to offer. Could Merrill
actually be the better broker for frequent trading? Let’s find out.
Cost
| Broker Fees |
Stock/ETF
Commission |
Mutual Fund
Commission |
Options
Commission |
Maintenance
Fee |
Annual IRA
Fee |
|
Merrill Edge
|
$0
|
$19.99
|
$0.65 per contract
|
$0
|
$0
|
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TradeZero
|
$0
|
na
|
$0 per contract
|
$0
|
na
|
Services
| Broker Review |
Cost |
Investment Products |
Trading Tools |
Customer Service |
Research |
Overall Rating |
|
Merrill Edge
|
|
|
|
|
|
|
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TradeZero
|
|
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Category #1: Available Assets
If you open an investment account at Merrill Edge, you’ll be able to trade these securities:
- Fixed-income products
- Options
- ETFs
- Mutual and closed-end funds
- Stocks
If you choose TradeZero, you’ll lose bonds and mutual funds.
Winner: Merrill Edge
Category #2: PC Software
At Merrill Edge, you can place trades and conduct research on a very good website. Charting with tools and an advanced order ticket are standard fare. If you want a more professional experience, you can download MarketPro, the firm’s flagship desktop program. There is no charge or balance requirement, and the software has many advanced features.
TradeZero has one browser platform that is free to use. Aptly named ZeroFree, it offers real-time news, but oddly doesn’t have options trading (this can be added for $25 per month).
TradeZero’s desktop program is the most advanced trading platform. Like MarketPro, it does have a lot of sophisticated features, but it costs $59 per month to use.
Winner: Merrill Edge
Category #3: Mobile Apps
With TradeZero’s app, you can directly route an order to a specific venue or locate stocks that are available for shorting. The platform also has a watchlist and charting.
Merrill’s app doesn’t have direct-access routing or a short locate tool. It does, however, provide mobile check deposit and bill pay, both of which are absent on the TradeZero app. A watchlist makes an appearance on Merrill’s platform, and options can be traded on the app, too. For some odd reason, TradeZero doesn’t provide options capability on its app.
Winner: Draw
Category #4: Day Trading & Swing Trading
Shorting. Although you can sell short at Merrill Edge, the broker doesn’t have a short locate widget. TradeZero does.
Extended Hours. Merrill’s pre-market session starts at 7:30 am, EST. TradeZero’s early-bird session opens at 4:00 am. Their after-hours sessions are the same length.
Level 2 Quotes. You can get Level 2 quotes at Merrill Edge for free. TradeZero charges for them.
Direct-access Routing. It’s possible to send orders to specific market venues with TradeZero’s software. Merrill Edge doesn’t offer this service.
Margin. The US branch of TradeZero charges 5% for margin loans. Merrill Edge is around 8%. The Caribbean branch of TradeZero offers 6:1 day-trading leverage. Merrill Edge does not.
Routing Fees and Rebates. Only available through TradeZero US.
Pattern Day-Trading Rule. Opening an account with TradeZero Bahamas will create a method to avoid America’s PDT regulation.
Winner: TradeZero
Category #5: Options Trading
If you’re interested in trading derivatives, Merrill Edge has several tools for you. One of the most salient is its strategy builder. With this gadget, you simply enter a stock’s ticker symbol, and then specify whether you’re bullish, bearish, or neutral. You can also predict the stock’s level of volatility. Then Merrill’s software will suggest several option strategies, such as iron condor, short strangle, or reverse butterfly put.
TradeZero does offer trading in options, but its software is only capable of trading calls and puts.
Winner: Merrill Edge
Category #6: Miscellaneous Services
Dividend Reinvestment Program: You can reinvest dividends as additional shares at Merrill Edge, but not at TradeZero.
IRAs: TradeZero doesn’t offer any retirement accounts. Merrill Edge does, and in fact, it has a self-employed 401(k) and a Keogh plan as well.
Fractional-share Trading: Neither firm offers whole-dollar investing, at least not yet.
Investment Advice: Merrill Edge offers two low-cost managed accounts. Both cost less than 1% annually. One is an online program, while the other offers one-on-one meetings with a licensed financial advisor.
Winner: Merrill Edge
At Last, Our Recommendations
Small Accounts: Merrill Edge (retirement accounts do have a closeout fee, however).
Mutual Fund Investors: The only option is Merrill.
Beginners: On Merrill Edge’s Investor Education section, the broker offers a good selection of learning materials. Plus, stock profiles have free pdf reports with trade recommendations. And we have to mention the broker’s 24/7 customer service. TradeZero fails to provide any of these services that new traders need.
Long-Term Investors and Retirement Savers: This one is a no brainer. Merrill Edge has target-date mutual funds, financial advisory services, a variety of retirement accounts, and customer service to back it all up.
Stock/ETF Trading: This one is more difficult to call. Yes, both firms have advanced desktop software. But TradeZero charges a monthly fee; although if you plan to day trade, it may be worth it. If you need analysis tools, go with Merrill.
Promotions
Merrill Edge: Get up to $600 when you open a new Merrill Edge account with at least $20,000.
TradeZero:
Trade stocks, options & ETFs for free.
TradeZero vs Merrill Edge Summary
To answer our original question, it does appear that Merrill Edge is quite competitive for active
traders, although it will depend on how exactly you plan to trade and what your budget is. If you
need some support and guidance along the way, Merrill Edge is definitely the broker to choose.
TradeZero Promotion Code Disclaimer
TradeZero promotion incentive details can change without notice. Read TradeZero promotion offer's
fine print on their website before opening an account.
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