Merrill Lynch vs. Vanguard: what’s the difference?

Summary 

Vanguard vs. Merrill Lynch: what’s the difference? 

Both Vanguard and Merrill Lynch operate as full-service financial service providers, although their services differ in some respects.  

Vanguard’s reputation has been built on its services for buy-and-hold investing and its long-term and low-cost investment philosophies.  

Merrill Lynch serves a similar audience as a subsidiary of the Bank of America. The service offers educational investment content and a trading-focused, automated online platform optimized for both beginner and experienced investors. 

What are Merrill Lynch and Vanguard’s specific investment strategies? 

Vanguard’s offerings center on long-term investment activities.  

The firm provides a selection of order types, such as limit, market, and stop-limit orders, that cater to the needs of buy-and-hold investors.  

Vanguard financial advisors automatically sweep uninvested cash into money market funds to maximize users’ returns and offer stocks, preferred stocks, ETFs, and mutual funds.  

Merrill Lynch also supports standard order types like stop limit, trailing stop, market and limit orders across its platforms, although it does not currently offer any advanced conditional orders.  

The firm offers stocks, ETF options, mutual funds, and fixed-income options.  

Clients can access Merrill Lynch financial advisors and a unique trading idea generator designed to assist DIY investors with action-specific investment strategies. 

What fees can I expect from Merrill Lynch and Vanguard? 

When working with investment firms, expect a range of fees, including trading fees and commissions, inactivity fees, and non-trading and miscellaneous fees.  

Both Merrill Lynch and Vanguard have $0 account minimums and fee-free stock trades.  

Merrill Lynch fees for options are set at $0 per leg plus $0.65 for each contract, while Vanguard fees are $0 per leg plus $1 per options contract. 

Neither firm imposes fees for account inactivity, trade confirmations, paper statements, or checks.  

Merrill Lynch charges $75 for account closures, while Vanguard charges $100 for account closures and transfers.  

Is Merrill Lynch or Vanguard better? 

Although Vanguard and Merrill Lynch are similar in their offerings, each offers unique pros and cons that may be better suited to the needs of specific investors. 

Pros of Merrill Lynch 

Cons of Merrill Lynch 

Pros of Vanguard 

Cons of Vanguard 

Merrill Lynch or Vanguard: which should I choose? 

Depending on your circumstances and unique trading preferences, there may be one firm that suits your needs better than the other.  

As well as fees, investment strategy, and various pros and cons, here are some other questions you should ask yourself when choosing between Merrill Lynch and Vanguard. 

How do Merrill Lynch and Vanguard remain competitive and adapt to changing market conditions? 

Financial market conditions can change rapidly, and advanced technology is one of the best tools available to help adapt to these changes.  

Merrill Edge uses a BofAML smart order router, which fills trading orders by prioritizing price improvement over speed of execution. To remain competitive, the firm has also created a unique, functional portfolio of offerings, including reliable trading news, trade idea generators, an automated trading platform, and DIY resources. 

Vanguard has opted for a simpler trading platform with similar order-routing technology, which doesn’t allow for the automation of trading strategies or the routing of individual orders.  

However, the firm remains competitive with offerings like fee-free third-party trading research and daily market research reports, which allow its clients to make informed trades amid evolving market conditions. 

Which platform provides better customer service and support? 

Vanguard customer service is limited to Vanguard Personal Services Advisor clients, and the firm does not currently offer 24/7 support via online chat, phone, or live broker.  

Merrill Lynch customer service, on the other hand, offers 24/7 assistance via online chat and phone, as well as in-person support through most Bank of America branches.  

This makes Merrill’s customer services significantly more extensive than Vanguard’s. 

Can I access my Merrill Lynch or Vanguard accounts through their websites and mobile apps? 

Both Merrill Lynch and Vanguard offer desktop trading platforms that allow clients to access their accounts remotely.  

Vanguard’s desktop platform is optimized for serving the needs of buy-and-hold investors, while Merrill’s platform offers features like MarketPro, which provides real-time quote streaming that can be viewed on multiple devices. 

The Vanguard mobile app allows you to customize your trading feed and view news, blogs, transaction histories, performances, and account information. The app does not offer charting or other data, such as daily volumes or changes. 

The Merrill Lynch app offers a higher degree of customizability, offering compact versions of the tools available on the firm’s desktop platform. However, the mobile app does not support chart trading, while other types of trades can be executed through the Trade feature, which pre-fills order tickets with your symbol details. 

Get expert financial advice 

Merrill Lynch and Vanguard are both highly reputable and recommended. However, each firm’s services, platforms and features make it better suited to specific types of investors with varying needs and financial goals. 

Unbiased will find you an SEC-regulated financial advisor to help you streamline your financial future.