Merrill Lynch financial advisors: what are the pros and cons?
Learn more about the advantages and disadvantages of Merrill Lynch's financial advisory services for individuals, businesses, and institutions.
Summary
Merrill Lynch offers a range of financial advisory services for individuals and institutions.
The firm’s financial advisors provide investment and brokerage advice through programs like Merrill Guided Investing.
Clients working with a Merrill Lynch financial advisor can arrange rates of up to 1.75% based on invested assets.
Unbiased helps you find a financial advisor who can offer expert advice for your personal or business needs.
Who is Merrill Lynch?
Merrill Lynch is a US-based investment and wealth management firm. Founded in 1914 and since acquired by Bank of America, it offers a wide range of financial management services, including investment banking, broker-dealing, and brokerage activities.
There are many Merrill Lynch benefits for those who choose to use this firm.
It employs more than 19,000 trained financial advisors across its operations and has $2.75 million in assets under management.
What do Merrill Lynch do?
Merrill Lynch provides services ranging from managed professional investment portfolios and consultations with experienced advisors to personalized investing guidance to help clients successfully manage and grow their wealth.
The firm also offers a wide range of investment, insurance, and annuity products through divisions such as Merrill Lynch Wealth Management, Merrill Private Wealth Management, Merrill Guided Investing, and Merrill Edge.
What are the pros and cons of Merrill Lynch?
Like all financial advisory services, Merrill Lynch has advantages and disadvantages.
These are the Merrill Lynch pros and cons that are important to be aware of before choosing any of the firm’s financial products:
Pros
Merrill Lynch is a subsidiary of the Bank of America, offering trusted services to people in the US and beyond.
The firm provides commission-free ETF trades, options and stocks, as well as low-cost securities through Merrill Edge.
The firm offers high-quality order execution and extensive third-party research to provide accurate financial advice and guidance.
Merrill Lynch customer service is highly rated and available through multiple channels.
Cons
Merrill Edge doesn’t offer clients fractional shares.
The firm’s interest rates on uninvested funds are low compared to those of its competitors.
Merrill Lynch’s annual management fees may be high compared to some similar-sized competitors.
What client services do Merrill Lynch offer?
Merrill Lynch client services include brokerage, financial planning, and investment advisory services.
The firm provides clients with a dedicated financial advisor who can assist them in creating personalized investment strategies, managing significant private wealth, and meeting more complex needs.
The firm also offers services like Merrill Guided Investing, an advisory program that provides clients with professionally managed investment portfolios and the opportunity to work with a financial advisor.
Alternatively, clients can use Merrill Edge Self-Directed to obtain personalized investment insights and implement their own unique investment ideas.
What fees do Merrill Lynch offer?
Merrill Lynch fees vary according to the services provided. Clients who choose to work with a Merrill Lynch financial advisor pay customized annual fees determined by the assets invested in their investment advisory accounts, alongside a Merrill Lynch fee rate.
Clients working with an advisor can arrange a rate of up to 1.75%, and those working with a Merrill Financial Solutions Advisor (MFSA) are charged at an annual fixed rate based on assets up to a maximum of 1.10%.
Should you invest in a managed investment strategy, Merrill Lynch’s fees are based on invested assets, and applicable manager fee rates will apply, ranging from 0.00% up to 0.65% per annum.
Premium Access Strategy managed strategies carry an annual fee based on invested assets, which will be agreed upon with a Merrill Lynch PAS manager.
Merrill Guided Investments’ annual program fee is set at 0.45%, calculated monthly based on the prior month’s balance for online investment services only, and 0.85%, calculated with the same parameters for online services with a financial advisor.
What technology does Merrill Lynch use?
Merrill Lynch rolled out its Collaborative On-Boarding Experience in 2021.
The technology streamlined and fully digitized the processes of client account opening and onboarding, allowing new accounts to be opened and validated within minutes online.
One of Merrill Lynch's benefits is that the firm uses automation to streamline its clients' investment activities. It combines robo-advisor technologies with human advisory expertise to provide an innovative hybrid service set.
Merrill Guided Investing provides automated investment portfolios that are monitored and balanced by experienced professionals. A personalized dashboard enables clients to monitor the performance of their investments.
Does Merrill Lynch have good customer service?
Merrill Lynch customer service offers comprehensive 24/7 assistance through various channels, including phone, online chat, or scheduled appointments with financial advisors.
The firm also offers an FAQ page with key information about opening accounts, transferring, and investing in Merrill Lynch.
What are the different ways to start investing with Merrill Lynch?
You can start investing in Merrill Lynch in several different ways, including by opting for a Self-Directed Investing account, a guided Investing account with an advisor, or a classic guided Investing account.
What are some Merrill Lynch benefits?
Merrill Lynch’s investment programs carry automatic rewards and benefits.
The firm uses a tiered reward system, with clients categorized based on their 3-month combined average daily account balances.
Gold tier members have a balance of $20,000 to <$50,000. Platinum members’ balances range from $50,000 to <$100,000; Platinum Honors members have balance averages of $100,000 to <$1 million; and Diamond members have balances of $1 million to <$10 million.
Merrill Lynch benefits range from discounts on Merrill Guided Investing account fees and Bank of America credit card bonuses to mortgage fee reductions; savings account interest rate boosts, fee-free everyday banking services, travel rewards, and more.
Get expert financial advice
Merrill Lynch is a well-established and trusted financial services provider that supplies a wide range of investment, brokerage, and financial advisory services to individual and business clients in the US and abroad.
Unbiased can connect you with an expert financial advisor to provide professional advice and help you reach your key financial and investment goals.
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