Merrill Edge vs Alpaca Comparison: Fees, Features, and More (2026)

Merrill Edge and Alpaca 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.

Head-to-Head Comparison: Merrill Edge vs Alpaca (2026)
Feature Merrill Edge Alpaca
Website https://www.merrilledge.com/ https://alpaca.markets/
Broker Type Self-directed discount/online brokerage API-first self-clearing broker-dealer (Trading API for retail/algo; web dashboard available)
Trading: Stock & ETF? Yes Yes
ETF & Stock commission $0 online commissions (ETF sales $0.01–$0.03 per $1,000 principal) $0 commission (retail US stocks/ETFs); plus SEC/FINRA/CAT fees. Elite Smart Router: $0.0005–$0.004/share
Fractional Shares? No Yes (from $1 notional; 2,000+ US equities)
Percent Allocations? No Yes, via API
Crypto Trading? No Yes (most US states via API/dashboard; 24/7)
Crypto Fees N/A Maker/taker 0.15%/0.25% (under $100k 30d vol) to 0%/0.10% ($100M+); on received asset
Options Trading? Yes Yes (Levels 1-3 equity/ETF; index options live)
Options Fee $0 + $0.65 per contract online; $0 exercise/assignment. Broker-assisted extra. $0 commission retail equity/ETF options; index $0.50/contract + ORF/OCC/exchange pass-throughs
Bond Trading Available? Yes No (Broker API partners only; not Trading API/dashboard retail)
Receives payment for order flow (PFOF)? No; limited options-exchange payments Yes (receives PFOF rebates)
Interface: Web trading? Yes Yes web dashboard; no official mobile app (third-party/TradingView yes)
Desktop trading? No (MarketPro is browser-based, not a downloadable desktop app) No
API Trading? No (no public retail trading API) Yes (Alpaca Trading API)
Mutual Funds: Offered? Yes No
Total Mutual Funds Thousands None
NTF Mutual Funds Many NTF (exact count unpublished) None
Non-NTF Fund Fee $19.95 per online transaction (buys, sells, exchanges) for no-load TF funds N/A
Early Redemption Fee? No ($39.95 short-term redemption fee on NTF funds held <90 days) N/A
Redemption Hold (Days) 90 days (NTF funds) N/A
Early Redemption Fee $39.95 (NTF funds held <90 days) N/A
Accounts: Margin Accounts? Yes Yes; all accounts opened as margin (limited margin if equity under $2,000).
IRAs Offered? Yes (Traditional, Roth, SEP) Yes; Traditional and Roth IRAs for US tax residents (Trading API). SEP-IRA in agreements.
HSAs Offered? Yes (Individual HSA) No
Money Market Sweep? Yes Yes; opt-in FDIC Bank Sweep/High-Yield Cash for uninvested cash (variable APY, up to $1M FDIC).
CDs Offered? Yes (brokered CDs) No
Robo-Advisor: Offered Yes No
Robo-Advisor Service Merrill Guided Investing N/A
Robo-Advisor Fees 0.45% AUM online; 0.85% with advisor (monthly in advance). Preferred Rewards discounts 0.05-0.15%. Fund expenses extra. N/A
Basics: Headquarters New York, NY San Mateo, CA
Year Founded 2010 2015
Clearing Firm Merrill Lynch, Pierce, Fenner & Smith Inc. (self-clearing) Self-clearing (Alpaca Clearing)
Local Branches? Yes (~3,530 Bank of America financial centers, U.S., as of Q2 2026) No
New Account Minimum $0 (self-directed) $0

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