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| NTF Mutual Funds | Many NTF (exact count unpublished) | 20,000+ |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