5 alternatives to Merrill Lynch: what are my options?
Merrill Lynch is a well-known, well-established wealth management advisory firm. Still, there are a number of popular competitors on the market you should also explore before making a decision.
Summary
Leading Merrill Lynch competitors include renowned financial institutions such as Charles Schwab, Morgan Stanley, Goldman Sachs, Vanguard, and Edward Jones.
These companies provide diverse financial services, encompassing advisory services, investment management, retirement planning, wealth management, and investment banking.
These competitors' financial strength and market reach are significant, with firms like Charles Schwab boasting more than $8 trillion in total client assets.
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Who is Merrill Lynch?
Established in 1914, Merrill Lynch & Co., formally Merrill Lynch, Pierce, Fenner & Smith Incorporated, was originally an American investment bank. In 2009, it was acquired by Bank of America and became part of BofA Securities.
Today. Merrill Lynch operates as a wealth management division of Bank of America and remains a prominent player in the financial services industry.
Renowned for its full-service brokerage model, this public company primarily caters to affluent individuals and families, providing comprehensive financial advisory services.
Merrill Lynch financial advisors are highly sought after, and the firm also offers investment management, retirement planning, estate planning, tax strategies, and philanthropic guidance.
Who are Merrill Lynch’s competitors?
| Company | Founded | Headquarters (HQ) | Assets Under Management (AUM) |
|---|---|---|---|
| Company | Founded | Headquarters (HQ) | Assets Under Management (AUM) |
| Merrill Lynch | 1914 | NYC, NY | $2.75 trillion |
| Goldman Sachs | 1869 | NYC, NY | $2.81 trillion |
| Vanguard | 1975 | Malvern, PA | $7.2 trillion |
| Edward Jones | 1922 | St. Louis, MO | $2 trillion |
| Charles Schwab | 1971 | Westlake, TX | $7.38 trillion |
| Morgan Stanley | 1935 | NYC, NY | $1.19 trillion |
As one of the many large firms in the wealth management and financial advisory sector, Merrill Lynch operates in a dynamic and competitive landscape.
It, therefore, faces competition from various established financial institutions, ranging from large multinational corporations to specialized boutique firms.
All Merrill Lynch competitors are vying for the business of high-net-worth individuals and families seeking personalized financial solutions.
The following are the most prominent Merrill Lynch competitors you should be aware of:
1. Goldman Sachs
Founded in 1869, Goldman Sachs is a public company globally recognized for its investment banking, securities, and investment management services. It is headquartered in New York City and has offices worldwide.
Assets under management (AUM):
$2.81 trillion
Fee:
Advisory fees range from 1.90% (up to $10M) to 1.30% (above $250M).
Fee structure:
Percentage of AUM, with additional fees for markups, commissions, and family office services.
Minimum account sizes:
$10 million minimum investment.
Goldman Sachs boasts a market capitalization of roughly $110 billion (as of August 2024). The firm specializes in providing diverse financial services, including investment banking, institutional client services, investing and lending, and asset management, cementing its position as a formidable competitor in the financial landscape.
2. Vanguard
Founded in 1975 and headquartered in Malvern, Pennsylvania, Vanguard is an internationally prominent investment management company celebrated for its steadfast commitment to low-cost index funds and ETFs. This makes it a preferred choice for individual and institutional investors seeking long-term growth.
Assets under management:
$7.2 trillion
Fee:
0.05%-0.3%
Fee structure:
Fee-based and fee-only
Minimum account sizes:
$50,000 (for a personal advisor)
This privately held, client-owned company, with offices in major financial centers worldwide, manages over $7 trillion in assets as of 2024.
3. Edward Jones
Established in 1922 and headquartered in St. Louis, Missouri, Edward Jones is one of Merrill Lynch's biggest competitors.
Assets under management:
$2 trillion
Fee:
0.5%-1.35%
Fee structure:
Fee-based
Minimum account sizes:
$5,000 or $25,000 depending on account type
The firm stands out in the financial services sector due to its extensive network of over 15,000 branch offices across the US and Canada. These offices enable its financial advisors to provide personalized investment guidance and financial planning services to individuals and small businesses.
As a private partnership with an estimated annual revenue exceeding $12 billion, Edward Jones focuses on fostering long-term relationships with clients, assisting them in achieving their financial goals through tailored investment strategies, retirement planning, and insurance solutions.
4. Charles Schwab
Another of Merrill Lynch's biggest competitors, Charles Schwab, was established in 1971 and is currently centered in Westlake, Texas.
Assets under management:
$7.38 trillion
Fee:
0.80% and decrease at higher asset levels
Fee structure:
Fee-based
Minimum account sizes:
$500,000
The firm has established itself as a leading force in the financial world. It offers a wide spectrum of investment, banking, and advisory services that cater to the diverse needs of investors and traders. The firm boasts a large number of branch offices and a significant online presence across the United States.
This publicly traded company also covers total client assets exceeding $8 trillion (June 2023), underscoring its significant reach and influence in the financial market.
5. Morgan Stanley
Founded in 1935 and based in New York City, Morgan Stanley is a publicly traded financial powerhouse offering a suite of investment banking, securities, wealth management, and investment management services to a diverse clientele, including corporations, governments, institutions, and individuals.
Assets under management:
$1.19 trillion
Fee:
Annual advisory fees up to 2%, with additional platform and manager fees.
Fee structure:
Percentage of AUM, fixed fees for specific services, and commissions.
Minimum account sizes:
$5 million for Private Wealth clients; $5,000 for Access Investing.
With a strong presence in major financial centers worldwide and a market capitalization of roughly $140 billion, Morgan Stanley excels in providing expertise across various financial disciplines, solidifying its position as a formidable competitor in the global market.
Get expert financial advice
While Merrill Lynch’s financial advisor services remain popular with many who seek financial services, the market offers several other strong contenders.
Established firms such as Charles Schwab, Morgan Stanley, Goldman Sachs, Vanguard, and Edward Jones cater to diverse financial needs, from investment management and retirement planning to wealth management and investment banking.
Let Unbiased match you with an SEC-regulated financial advisor who can offer expert financial advice that is tailored to your needs and goals.
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