Updated September 29, 2026 · BrokerCue Editorial Team
Betterment vs Merrill Edge
Betterment vs Merrill Edge: the differences
| Compare |  Betterment |  Merrill Edge |
|---|---|---|
| Management fee | 0.25%Lower | 0.45% to 0.85% |
| Minimum investment | $10 | $0 to $1,000Lower |
| Regulators | U.S. Securities and Exchange Commission (SEC) registered investment adviser, Financial Industry Regulatory Authority (FINRA) Betterment Securities broker dealer member, SIPC | FINRA, SEC |
| Account types | IRA, Roth IRA | IRA, Roth IRA, Joint, CorporateCovers more |
| Portfolio types | ETF, ESG, Cash, CryptoCovers more | ETF |
Same on both: Investor protection (SIPC up to USD 500,000).
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Key differences
- Betterment scores higher overall: 9.6 vs 9.5.
- Regulators: only Betterment offers U.S. Securities and Exchange Commission (SEC) registered investment adviser, Financial Industry Regulatory Authority (FINRA) Betterment Securities broker dealer member, SIPC.
- Regulators: only Merrill Edge offers FINRA, SEC.
- Founded is lower at Merrill Edge: 1914 vs 2008.
- Management fee is lower at Betterment: 0.25% vs 0.45% to 0.85%.
- Minimum investment is lower at Merrill Edge: $0 to $1,000 vs $10.
- Account types: only Merrill Edge offers Joint, Corporate.
- Portfolio types: only Betterment offers ESG, Cash, Crypto.
Our verdict on each
Betterment
Betterment suits US savers who want a robo-managed IRA with a flat, low management fee and SIPC cover. It charges a management fee of 0.25%, sits mid-table among robo-advisors on that fee, and offers only IRA and Roth IRA accounts, so UK and European readers may look elsewhere.
Merrill Edge
Merrill Edge is a US brokerage that suits investors who want commission-free stock and ETF dealing alongside a brokerage account. Stock trade fees of $0 and an account fee of $0 put it in the cheapest band we rate, though options and managed portfolios carry their own charges.
Score breakdown
| Area | Betterment | Merrill Edge |
|---|---|---|
| Cost | 9.3Management fee of 0.25% and no account fee, with a minimum investment of $10. | 9.3Stock trade fee of $0, account fee of $0 and no inactivity charge at $0, with options at $0.65 per contract. |
| Offer | 9.7Higher | 9.6 |
| Trust | 9.7 | 9.7 |
Where these facts come from
Betterment
- betterment.com: 8 facts, checked September 26, 2026
- en.wikipedia.org: 1 fact, checked September 26, 2026
- sipc.org: 1 fact, checked September 26, 2026
Merrill Edge
- merrilledge.com: 9 facts, checked September 26, 2026
- en.wikipedia.org: 1 fact, checked September 26, 2026
How they place
| Ranking | Betterment | Merrill Edge |
|---|---|---|
| Stock and ETF brokers | 33 of 490 | 41 of 490 |
| Investment platforms and apps | 6 of 85 | 10 of 85 |
| Robo-advisors | 9 of 153 | 13 of 153 |
| IRA providers | 4 of 43 | 8 of 43 |
Every fact side by side
| Fact | Betterment | Merrill Edge |
|---|---|---|
| Legal entity | MTG LLC | Merrill Lynch, Pierce, Fenner and Smith Incorporated |
| Headquarters | United States | United States |
| Founded | 2008 | 1914Lower |
| Support channels | Phone, Email, Chat, Help centre | Phone, Chat, Help centre, Email |
Brokers
| Fact | Betterment | Merrill Edge |
|---|---|---|
| Minimum deposit | $10 | $0Lower |
| Stock trade fee | Not confirmed | $0 |
| Account fee | $0 | $0 |
| Inactivity fee | Not confirmed | $0 |
| Markets | Stocks, ETFs, Bonds | Stocks, ETFs, Options, Bonds, FundsCovers more |
| Features | Not confirmed | Fractional shares, Demo account, Mobile app, Options |
| Pricing model | Not confirmed | Commission free |
| Audience | Not confirmed | Beginners, Experienced |
| Options contract fee | Not confirmed | $0.65 |
| Deposit and withdrawal fees | No fees | Not confirmed |
| Platforms | Not confirmed | Merrill Edge website, Merrill Edge MarketPro, Merrill mobile app |
| Interest on cash | 3.5% | Not confirmed |
Where each stands against the rest
| Fact | Betterment | Merrill Edge | Median |
|---|---|---|---|
| Management fee | 0.25%below the median | 0.45% to 0.85%above the median | 0.35% |
| Minimum investment | $10below the median | $0 to $1,000lowest quarter | $100 |
Median across 67 listed brokers.
Pros and cons
Betterment
Pros
- A management fee of 0.25% sits below the robo-advisor median of 0.35%
- An account fee of $0 and a deposit and withdrawal charge listed as No fees
- Covered by SIPC protection of SIPC up to USD 500,000
Cons
- Account types run only to ira and roth ira, so there is no taxable or ISA-style account for UK and European readers
- A management fee of 0.25% still ranks 18 of 49 brands, so cheaper robo-advisors exist
- Markets cover only stocks, etfs and bonds, with no forex, options or crypto trading
Merrill Edge
Pros
- Stock trades cost $0 and the account fee is $0, so the everyday cost of holding a brokerage account is minimal
- No inactivity charge at $0, unlike several rivals that bill dormant accounts
- Minimum deposit of $0 means an account can be opened and funded without a large starting balance
Cons
- Options cost $0.65 per contract, so the free stock dealing does not extend to derivatives
- Managed portfolios charge 0.45% to 0.85% in advisory fees, where commission-free dealing applies only to self-directed trading
- Account types are limited to retirement and joint and corporate forms, so it does not cover the wider account range some rivals offer
Who each suits
Betterment
Who it suits
- US savers who want a robo-managed IRA or Roth IRA
- People starting small, with a minimum investment of $10
- Investors who want automated portfolios of etf, esg and cash
Who should look elsewhere
- UK and European readers, since account types cover only ira and roth ira
- Active traders wanting forex, options or crypto beyond the stocks, etfs and bonds it lists
- Anyone seeking a management fee of 0% as at eToro
Merrill Edge
Who it suits
- US investors who want commission-free stocks and ETFs plus a retirement account in one place
- Long term holders who would rather avoid an inactivity charge of $0 and the account fees some rivals levy
- Beginners and experienced traders who appreciate support across phone, chat and help centre
Who should look elsewhere
- Investors who want forex or crypto, as the market list holds stocks, etfs and options
- Anyone looking for a fully managed portfolio without paying advisory fees of 0.45% to 0.85%
- Readers who want the wider market spread offered by CFI or eToro, where the asset mix runs wider than stocks, etfs and options
Current offers
Betterment
Current offer
Bonus
Invest and earn up to $2,000: up to $2,000
Terms apply; new customers only; open any individual investing account and make a deposit
Source, checked September 26, 2026
Bonus
0.75% APY boost on Cash Reserve: 0.75% APY boost, 4.25% variable APY on balances up to $1M
New clients with a qualifying deposit; guaranteed through February 15; base variable APY 3.50% as of 9/21/2026; $10 min deposit for base APY
Source, checked September 26, 2026
Discount code
Discounted mortgage rate through Rate partnership: up to 0.75% off
Via partnership with Rate; terms apply
Source, checked September 26, 2026
Merrill Edge
Current offer
First period offer
$0 program fee for 6 months - Merrill Guided Investing: $0 for 6 months
New enrollments, use offer code 6FREE
Source, checked September 26, 2026
Country by country
| Country | Betterment | Merrill Edge |
|---|---|---|
| United States | Yes | Yes |
Questions about each
Betterment
How much does Betterment charge to manage my money?+
The annual management fee is 0.25%, taken as a percentage of the portfolio. That sits below the robo-advisor median of 0.35%, and Betterment ranks 18 of 49 brands on this measure. There is no separate account charge, listed as $0.
Is my money protected if Betterment fails?+
Stated protection is SIPC up to USD 500,000, and Betterment appears on the SIPC member register as SIPC member 51906. The cover applies to cash in the brokerage account if the broker-dealer fails, and the legal entity named is MTG LLC. Portfolio market values are not protected by the scheme.
Merrill Edge
What does it cost to trade stocks at Merrill Edge?+
Online stock dealing is priced at a stock trade fee of $0, with an account fee of $0 on the brokerage account. The inactivity fee is $0, so a dormant account is not billed. Options trades are charged separately at $0.65 per contract.
Which regulator supervises Merrill Edge?+
Merrill Edge is supervised in the US, and the regulators recorded for it are FINRA and SEC. The legal entity behind the brand is Merrill Lynch, Pierce, Fenner and Smith Incorporated. Securities held in the account fall under the investor protection arrangement stated as SIPC up to USD 500,000.
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