Table of Contents
Introduction
Investing in the stock market for the novice traders, there are hundreds of options available and it may be difficult to choose what to invest in. Two of the most common for beginner investors are Schwab and Merrill Edge. Each of the platforms mentioned above has several advantages and disadvantages to help people understand the basics of the trading process. In this article, we will compare Schwab and Merrill Edge, and discuss the essentials of these platforms, including the costs, support, and ease of use. You will be in a position to decide at the end of this article which of the two platforms is suitable for you as a novice trader.
Key Features
It is also essential to consider the available features when choosing a trading platform. Let’s now contrast Schwab and Merrill Edge in more detail:
Schwab
- Excellent research facilities: Schwab offers a plethora of research tools such as market data, analyst reports and educational material. These tools can come in handy for the new trader who wants to make the right investment decisions.
- Many kinds of investment products: Schwab provides a vast selection of investment products including stocks, bonds, mutual funds, and ETFs. This allows the trader to diversify and create a portfolio that is suitable for their investment objectives.
- Easy to use trading platform: Novice traders will find Schwab’s trading platform very easy to use and navigate as they trade and monitor their accounts.
Merrill Edge
- Integrated banking services: Merrill Edge is owned by Bank of America which gives the user access to other banking products such as checking and saving accounts, credit cards and home loans. This integration can be useful for those who want to combine all their financial products in one place.
- Analysis of the portfolio: Merrill Edge has a good portfolio analysis tools that assist the traders in tracking the performance of their investments and make decisions on portfolio adjustments.
- Personalized notifications: Merrill Edge enables the user to set up personal notifications for price, news, and other market activities. These alerts can help new traders who need information and time to analyze the market and make decisions.
Fees
When selecting trading platforms it is important to consider the fees that are associated with the platforms. Here is the comparison of the fees charged by Schwab and Merrill Edge:
Schwab
Online stock, ETF and options trading is commission free at Schwab. However, the firm has a $0.65 per contract fee for options trading. However, it has a $25 fee for broker assisted trades. It is important to note that Schwab does not have account minimum, therefore it is suitable for new traders with small amounts of money to invest.
Merrill Edge
Both Merrill Edge and Schwab provide commission free online stock and ETF trading. Options trading has $0.65 per contract fee, just like Schwab. However, Merrill Edge charges $29.95 for broker assisted trades. The platform has a $0 account minimum, which makes it suitable for new traders as well.
Customer Support
It is important to have a good customer support as a novice trader because you may have some questions to ask or require some assistance. Compare the customer support of Schwab and Merrill Edge below:
Schwab
At Schwab, the customer support is available 24/7 through phone, email and live chat. They also have a helpful knowledgebase with articles, guides, and FAQs. Also, Schwab has a number of physical offices where investors can get one-on-one assistance if needed.
Merrill Edge
At Merrill Edge, you can contact the customer support via phone or live chat anytime. They also have a large number of articles and tutorials in their online knowledgebase. However, there is no physical branches of Merrill Edge which is a disadvantage for those who want to get personal help.
User Experience
The user experience is an important factor that should not be ignored when selecting a trading platform. Let’s find out how easy it is to use Schwab and Merrill Edge:
Schwab
Schwab’s trading platform has a simple design and easy to use interface. The platform offers customized dashboards, market data in real time, and technical analysis tools such as charts. Schwab has a mobile application that allows the trader to trade from anywhere.
Merrill Edge
The trading platform of Merrill Edge is also simple and has a nice layout of the platform. The platform has real-time streaming quotes, interactive charts, and watch list that a user can customize. Merrill Edge also has a mobile application that helps the trader to stay updated with the market at all times.
Summary
Both Schwab and Merrill Edge are investment platforms that can be useful for the novice trader and have many features to offer. The following are some of the features of Schwab and Merrill Edge that make them popular among novice traders: Schwab is particularly strong in the area of research and has a wide selection of investment products, while Merrill Edge is integrated with a bank and has a good portfolio analysis tool. In regards to the fees, both platforms provide commission free online stock and ETF trading; the options trading has a $0.65 per contract fee. When it comes to customer support, Schwab has an advantage of having physical branches while Merrill Edge provides support through phone and live chat. In terms of the user interface, both platforms are easy to use and provide mobile applications for trading on the go.
In conclusion, the difference between Schwab and Merrill Edge depends on your trading goals and preferences as a newbie trader. When choosing, focus on the options available, costs, support, and the interface. By looking at these factors, you will be able to choose the platform that is most suitable for your investment objectives and trading risk appetite.
