Merrill Guided Investing Review 2024
Written by
John Csiszar
Edited by
Melanie Grafil
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Minimums
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Mobile App
4.0
Although the Merrill Edge Guided Investing account has a lot to offer, it may not be a match for everyone. The automated aspect of the service may not provide enough of a specialized portfolio for some investors, while the addition of an advisor will cost additional money. But this may be worth it depending on the type of investor that you are. Here’s a look at the overall pros and cons of the Merrill Edge Guided Investing option so that you can make an informed decision:
Pros
- Easy way for investors to instantly gain access to a diversified portfolio
- Professionally managed portfolio
- Ability to adjust portfolio allocation based on changing needs
- Sustainable and socially responsible investment options
- Current sign-up offer provides 6 months of service for $0 in management fees
- Can earn Bank of America preferred rewards
Cons
- Fees can be high for a robo-advisory service
- Costs more to work with a flesh-and-blood advisor
- Only one financial goal can be selected per portfolio
- Higher investment minimums to work with a professional advisor
Overview
The Merrill Edge Guided investment option combines the power of technology with management and investment decisions made by Merrill Lynch investment professionals to match you with specific investments that meet your needs. When you open a Merrill Edge Guided Investment account, you’ll start by providing the firm with information about yourself and your investment needs so that the service can match you with the proper investment portfolio.
Investment Options
If you’re an aggressive growth investor, you’ll likely be matched with a portfolio that is mostly comprised of fast-growing, small- and mid-cap companies, or large-cap stocks in highly volatile industries like semiconductors or biotechnology. If you prefer a socially responsible portfolio, you’ll instead have access to sustainable investments that match your personal values.
If you like the idea of a computer-generated portfolio but want a little more human interaction, you can choose the “online with an advisor” option, which pairs you directly with a Merrill Lynch investment professional. However, this service costs additional money.
Fees and Commissions
Fees for the Merrill Edge Guided Investing program vary depending on whether you choose the online or online with advisor option, as follows:
- Online: 0.45% of assets annually, calculated paid monthly based on the prior month’s balance
- Online with advisor: 0.85% of assets annually, calculated and paid monthly based on the prior month’s balance
Thanks!
The investment minimum for the Merrill Edge Guided Investing program is fairly high, particularly when compared with numerous competitors who have minimums as low as $0. Here’s the current breakdown:
- Online: $1,000 for growth-focused strategies, $50,000 for income-focused strategies
- Online with advisor: $20,000 for growth-focused strategies, $50,000 for income-focused strategies
Mobile App
The Merrill Edge mobile app provides the basic features and benefits most app users would expect, such as the ability to access your account information, transfer money among accounts, place trades and review your portfolio. However, the app seems to have many more users — and favorable reviews — on the App Store as opposed to Google Play. The approximately 123,000 users who have left reviews on the App Store, for example, give the Merrill Edge app 4.6 stars. But only a little more than 7,200 users have left reviews on Google Play, with an average rating of just 3.2 stars.
Bonuses
Merrill Lynch is currently offering a bonus promotion for those opening a new Merrill Edge Guided Investment account. To qualify, you must make a deposit to your account within 45 days and maintain your balance for at least 90 days. Cash rewards are awarded as follows, based on the amount that you deposit:
- Deposit $20,000: Earn a $100 cash reward
- Deposit $50,000: Earn a $150 cash reward
- Deposit $100,000: Earn a $250 cash reward
- Deposit $200,000+: Earn a $600 cash reward
Although the required deposits are fairly large for the average investor, the cash rewards can be lucrative, running from 3% to 5% of the amount deposited.
With offer code 600MGI, new investors choosing the online option without an advisor can pay a $0 program fee for the first six months. This bonus does not apply to the “online with advisor” option.
Comparable Options
Merrill Guided Investing is far from the only option in the robo-advisory/guided investing space. Here are two top competitors.
SoFi Automated Investing
SoFi Automated Investing is tough to beat in the fee and minimum categories, as it charges no annual fee and has no account minimum. The service offers access to financial advisors for no additional fee, and its portfolios can include alternative investments ranging from commodities and private credit to venture capital and more. The current sign-up bonus for SoFi Automated Investing pays as much as $1,000, and its bank offers a current APY.
Betterment
Betterment was one of the pioneers in the robo-advisory space, and it still maintains a leadership position. Both minimums and fees are lower at Betterment, with no maintaining balance required–and only $10 to open the account–and an annual fee of just 0.25%. For a 0.65% annual fee, you can access Certified Financial Planner professionals through the platform. Betterment also boasts a cash account that currently pays a APY.
The Bottom Line
Merrill Edge has a lot to offer customers. Its self-directed investing account allows investors to manage their own portfolios while still having the ability to lean on Bank of America’s global research capabilities. Those looking for a bit more support in exchange for giving up some management control of their portfolios, however, might prefer the Merrill Edge guided investment option.
This is essentially a robo-advisory service, but it’s overseen by professional Merrill Lynch investment advisers and also offers direct access to a dedicated Merrill Financial Solutions Advisor. While that may all sound well and good, you must understand that any investment strategy or service has pros and cons, and it’s important to match the features and benefits of a brokerage before you jump in with both feet.
Rates are subject to change; unless otherwise noted, rates are updated periodically. All other information on accounts is accurate as of Aug. 8, 2024.
Editorial Note: This content is not provided by any entity covered in this article. Any opinions, analyses, reviews, ratings or recommendations expressed in this article are those of the author alone and have not been reviewed, approved or otherwise endorsed by any entity named in this article.
