International stocks and ADRs
Let's compare Merrill Edge vs. Fidelity on international stock trading and American depositary receipts (ADRs).
Fidelity's clients can trade on international markets in 25 countries and in 16 currencies. Its customers can also trade ADRs. These are shares of a foreign stock that trade domestically. The only downside is that international trading costs more at Fidelity. Investors will pay a commission that varies by country and exchange.
Merrill Edge customers can trade ADRs, but the broker doesn't allow for trading directly on a foreign stock exchange. So, while you'll have no problem buying shares of BP or Burberry with an ADR, Merrill Edge isn't a good fit to trade stocks that trade only in London, for example.
Many investors get exposure to international markets simply by holding diversified mutual funds and ETFs. If that's how you plan to invest, there isn't a meaningful difference between Merrill Edge vs. Fidelity -- or any online discount broker, for that matter.
Penny stocks
In a Merrill Edge vs. Fidelity match on penny stocks, Fidelity has the advantage. You can't buy or sell penny stocks through Merrill Edge. Fidelity may allow you to trade penny stocks, but you'll need to enable penny stock trading on your account, which requires you to acknowledge the risks involved.
As a general rule, investors benefit from having access to a wealth of research tools and opinions. Looking at Merrill Edge vs. Fidelity, both have robust offerings.
Fidelity often takes the top spot in research among discount brokerages. It provides research from 12 independent research firms. The brokerage makes it easy to view analyst upgrades and downgrades. Fidelity provides access to Thomson Reuters StarMine. This service combines analyst ratings and weights them by the analysts' historical accuracy. Fidelity also offers its own proprietary "thematic" research, such as deep dives into certain sectors or investment themes (think a white paper on FANG stocks, for example).
Merrill Edge stands out for its relationship with Bank of America, offering access to BofA/Merrill Lynch ratings on more than 1,300 U.S. stocks. In addition, customers can tap into a wealth of research from Morningstar and Lipper for funds, as well as Merrill Edge's proprietary Stock Story feature for individual stocks. Merrill Edge also offers downloadable research for mutual funds and ETFs, which sets it apart for investors who prefer to invest in funds instead of picking individual stocks.
Merrill Edge also offers Merrill Guided Investing. This is an oversight and monitoring platform for investors who want input from experienced investment professionals. It's not quite a robo-advisor because this service combines technology with human insight from a financial advisor.
The Merrill Edge mobile app lets you access your linked Merrill and Bank of America accounts anytime on your mobile device.
Not to be outdone, Fidelity also offers mobile apps that let you trade anytime, anywhere. Investors can view a personalized feed on either iPhone or Android.
Who wins: Merrill Edge vs. Fidelity
The Merrill Edge vs. Fidelity matchup leaves investors with two solid options.
Whether you invest in funds or individual stocks, you can find plenty to like about Fidelity and Merrill Edge's $0 commission stock trades, access to research, and highly rated mobile apps. In short, the Merrill Edge vs. Fidelity comparison is pretty close, and comes down to the features that are most important to you.
Fidelity scores a win for having the only completely free Zero mutual funds, which let long-term investors build diversified portfolios of free investments. And Fidelity is the clear choice for investors who want direct access to international markets, although this isn't too common. On the other hand, Merrill Edge gets a win for people who have an existing relationship with Bank of America, as their accounts can be smoothly integrated.