Update 12/9/19: This has now been expanded to all Merrill Edge Self-Directed Clients. Hat tip to @HH_Cash
Original post: Bank of America/Merrill Edge has announced that Preferred Rewards members will now no longer have to pay commission on stocks, ETFs and options. Earlier this year they added a limited number of free trades but this latest move is likely in response Charles Schwab removing commission which caused an avalanche of competitors to follow (TD Ameritrade, E*Trade, Ally & Fidelity). Non preferred members will have the cost reduced to $2.95 per trade.
Hat tip to CNBC via readers Lightspeed & John R
View Comments (49)
@chucksithe FYI title is misspelled as "Merill" instead of "Merrill" which means this page is hard to find in search.
Thanks, fixed
Wells Fargo did the same today
Posted now, thanks
I have been using Merrill Edge for about 2 years because of the free trades from Preferred Rewards. I have some complaints about stock trading on Merrill Edge: each and every order requires getting a text message authentication code; some penny stock type of orders require review and these reviews might take minute or more, which is much slower than I've seen at other online brokers; stop limit orders have max size of 10k shares; there is no way to search by symbol for trade confirmations for past years.
They also don't let you buy some stocks, such as GBTC. I don't use Merrill Edge for trades, just their opening/transfer bonuses and as a way to qualify for Preferred Rewards to get higher rewards on BofA credit cards.
but you do have to keep 100k there all the time, to keep the elevated status, right? it would be a shame not to invest all that cash
Yeah; I transferred stocks there from another brokerage. Actually I might've made a couple trades there, e.g., to reinvest dividends, and I don't think they're that bad; but with other brokerages also having free trades and less restrictions, I don't see a reason to do more trading at Merrill.
Well Finally..I was waiting for this...I really like the instant transfer function of BOA
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BoA is very sneaky. They approved my Virgin card but reduced my premier card limit to only $5k, without any communication. I almost touched the limit, I called them back to put all the limits back.
Their online payment is also sneaky. Their autopay does not work if E-bills are not ON, even if the page shows 'Autopay ON'. I found out after calling technical help. They would not waive off the interest fee too, only late fee.
Banks love to churn.
Well hopefully they add some more value to the preferred rewards program then
"$0 option trades are subject to a $0.65 per-contract fee."
Just to make it clear.
Preferred rewards is shit. I can't get a free locker in the branch near me. Now everyone gets the free commissions. That leaves only the extra bonus on credit cards.
> I can’t get a free locker in the branch near me.
Awesome, congrats!
BoA cash back is the best out there.
I think they should remove or at least reduce the annual fee or add extra benefits for Preferred Rewards members on Credit cards, Specially on Premium Rewards card.
The AF is arguable already effectively zero. And you get unlimited 2.625% cashback on everything. I'd hate for them to mess with it if it means reducing the good features.
I mean reduce the fee on other cards. For Premium Rewards card add extra benefits.
Do a 401k and HSA count towards the amounts required in the rewards program? I recently quit my job and I want to transfer my accounts. I have been looking at here or Schwab.
@guest_828924 401k yes, HSA no.
401k yes? I had looked into that earlier this year and thought IRA yes, 401k no, HSA no.
@guest_855379 I suppose if he just quit his job the 401k would be rolled into an IRA, is that what you meant as opposed to an active 401k at BoA/ML?
@guest_856033 exactly. I said 401k as to not confuse OP, but when all said and done 401k is the same thing as an IRA when it comes to counting towards preferred membership.
Yes ira can be used to count towards the req amounts