Interactive Brokers vs Merrill Edge Comparison: Fees, Features, and More (2026)
Interactive Brokers and Merrill Edge are two leading discount brokerages offering commission-free stock and ETF trading. Use this head-to-head comparison table to evaluate fees, features, trading tools, and account options to help you decide which broker is right for you in 2026.
| Feature | Interactive Brokers | Merrill Edge |
|---|---|---|
| Website | https://www.interactivebrokers.com/ | https://www.merrilledge.com/ |
| Broker Type | Self-directed online discount broker | Self-directed discount/online brokerage |
| Trading: Stock & ETF? | Yes | Yes |
| ETF & Stock commission | IBKR Lite: $0 US-listed stocks/ETFs (US residents); IBKR Pro: $0.005/share fixed (min $1) or $0.0005–$0.0035/share tiered (min $0.35) | $0 online commissions (ETF sales $0.01–$0.03 per $1,000 principal) |
| Fractional Shares? | Yes (eligible US/CA/EU stocks & ETFs, from $1) | No |
| Percent Allocations? | Yes (TWS Rebalance Portfolio sets custom target %) | No |
| Crypto Trading? | Yes (spot crypto via Paxos/Zero Hash for eligible US IB LLC clients; permissions required; also futures/ETPs) | No |
| Crypto Fees | 0.12%–0.18% of trade value (monthly volume tiers), USD 1.75 min/order (capped at 1% of value); no added spreads/markups/custody fees; possible $0.15/mo Paxos fee | N/A |
| Options Trading? | Yes | Yes |
| Options Fee | US: Lite $0.65/contract ($1 min; Pro rates after 1k contracts/mo); Pro $0.15–$0.65/contract (volume/premium tiers), $1 min/order + exchange/reg/clearing fees | $0 + $0.65 per contract online; $0 exercise/assignment. Broker-assisted extra. |
| Bond Trading Available? | Yes (US Treasuries, corporates, munis, CDs, 1M+ global bonds) | Yes |
| Receives payment for order flow (PFOF)? | Sometimes (Lite receives PFOF on US stocks/options; Pro generally avoids via SmartRouting) | No; limited options-exchange payments |
| Interface: Web trading? | Yes (Client Portal web; IBKR Mobile and GlobalTrader apps) | Yes |
| Desktop trading? | Yes; Trader Workstation (TWS) and IBKR Desktop. | No (MarketPro is browser-based, not a downloadable desktop app) |
| API Trading? | Yes; TWS API and Web API for retail algorithmic trading. | No (no public retail trading API) |
| Mutual Funds: Offered? | Yes | Yes |
| Total Mutual Funds | 50,000+ | Thousands |
| NTF Mutual Funds | 20,000+ | Many NTF (exact count unpublished) |
| Non-NTF Fund Fee | Lesser of 3% of trade value or USD 14.95 per transaction (US). | $19.95 per online transaction (buys, sells, exchanges) for no-load TF funds |
| Early Redemption Fee? | Yes (no IBKR fee); fund companies may charge per prospectus. | No ($39.95 short-term redemption fee on NTF funds held <90 days) |
| Redemption Hold (Days) | None by IBKR (0 days); fund prospectus may impose. | 90 days (NTF funds) |
| Early Redemption Fee | $0 from IBKR; funds may charge per prospectus. | $39.95 (NTF funds held <90 days) |
| Accounts: Margin Accounts? | Yes (Cash, Margin, or Portfolio Margin; typically $2,000 equity for margin). | Yes |
| IRAs Offered? | Yes (Traditional, Roth, SEP, SIMPLE, Inherited, Rollover). | Yes (Traditional, Roth, SEP) |
| HSAs Offered? | No | Yes (Individual HSA) |
| Money Market Sweep? | Yes (Insured Bank Deposit Sweep Program). | Yes |
| CDs Offered? | Yes (brokered CDs). | Yes (brokered CDs) |
| Robo-Advisor: Offered | Yes | Yes |
| Robo-Advisor Service | Interactive Advisors | Merrill Guided Investing |
| Robo-Advisor Fees | 0.10%–0.75% AUM/year (varies by portfolio; IA 0.10%–0.20%, managers 0.25%–0.75%); no commissions | 0.45% AUM online; 0.85% with advisor (monthly in advance). Preferred Rewards discounts 0.05-0.15%. Fund expenses extra. |
| Basics: Headquarters | Greenwich, CT | New York, NY |
| Year Founded | 1977 | 2010 |
| Clearing Firm | Self-clearing | Merrill Lynch, Pierce, Fenner & Smith Inc. (self-clearing) |
| Local Branches? | No | Yes (~3,530 Bank of America financial centers, U.S., as of Q2 2026) |
| New Account Minimum | $0 | $0 (self-directed) |
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