What is BofA Preferred Rewards / BofA Rewards?

A tiered loyalty program combining Bank of America and Merrill Edge balances. At Platinum Honors ($100K+ combined), members receive a 75% credit card cash-back bonus, advisory fee discounts, mortgage origination discounts, and no-fee ATM access. The program renames to "BofA Rewards" on May 26, 2026 with a new four-tier structure (Member / Preferred Plus / Preferred Honors / Premier).

Does Merrill Edge offer fractional shares or crypto?

No on both. Merrill does not support fractional shares (DRIP only) or any crypto product. For fractional investing, look at Fidelity ($1 minimum), Schwab Stock Slices, Robinhood, SoFi, or Public. For crypto, look at Robinhood, Webull, SoFi, or IBKR.

Does Merrill Edge accept payment for order flow?

No on equities — a material differentiator. Merrill reports 99.15% of orders execute at or better than NBBO with $42.50 average price improvement on 1,000-share market orders. It does, however, participate in exchange-sponsored options PFOF programs on Nasdaq, Cboe, NYSE Arca, and NYSE American options exchanges.

What is the Merrill Edge margin rate?

Tiered off a 5.25% Base Lending Rate (May 2026): 8.625% under $25K, 6.125% on $100K–$499K, down to 4.50% above $10M. Competitive at the high end but expensive at the low end — IBKR Pro starts at ~5.83% for $25K balances.

Why is the Merrill Edge cash sweep yield so low?

The default sweep pays around 0.01% APY for most balances — a structural choice that drew a $25M SEC penalty in January 2025. To earn meaningful yield, move cash manually to Preferred Deposit (2.89% APY at < $2.5M, scaling higher with balance, $100K minimum). Compared to Fidelity SPAXX (3.26% automatic), this is poor.

Can I trade OTC or penny stocks on Merrill Edge?

Effectively no. Bank of America banned new purchases of OTC securities priced ≤ $5 or with market caps ≤ $300M across the wealth franchise in 2018. NASDAQ/NYSE micro-caps are unaffected, but pink sheets and OTC tiers are off-limits. For OTC access, use Firstrade, Schwab, IBKR, or TradeStation.

Is Merrill Edge good for beginners?

Yes if you already bank with Bank of America — the integration is a real advantage. No if you want fractional shares or a polished standalone mobile app, where Fidelity, Robinhood, or SoFi are better fits.

Merrill Edge review

Q: Can I trade OTC or penny stocks on Merrill Edge?

Effectively no. Bank of America banned new purchases of OTC securities priced ≤ $5 or with market caps ≤ $300M across the wealth franchise in 2018. NASDAQ/NYSE micro-caps are unaffected, but pink sheets and OTC tiers are off-limits. For OTC access, use Firstrade, Schwab, IBKR, or TradeStation.

Q: Is Merrill Edge good for beginners?

Yes if you already bank with Bank of America — the integration is a real advantage. No if you want fractional shares or a polished standalone mobile app, where Fidelity, Robinhood, or SoFi are better fits.

3.8 / 5

Last reviewed May 13, 2026

Visit Merrill

Best for Bank of America customers with $100K+ combined balances who want IRA, banking, credit card, and brokerage under one login. Outside that fit, Fidelity, Schwab, or IBKR are stronger pure-trading platforms.

BofA Preferred Rewards
No PFOF on equities
BofA Global Research
3,800+ branches
#1 Bank Brokerage 2026

At a glance

Founded: 2010
Minimum deposit: $0
Regulators: SEC · FINRA · NYSE

Strengths and weaknesses

Strengths

BofA Preferred Rewards (renaming to BofA Rewards May 26, 2026) — 75% credit card bonus at Platinum Honors ($100K+)
Does NOT accept PFOF on equities — 99.15% of orders at-or-better than NBBO, $42.50 avg price improvement per 1,000 shares
BofA Global Research — institutional-grade reports on thousands of equities
Full IRA lineup with $0 fees; strong banking + brokerage + credit card integration
3,800+ Bank of America branches with in-person service; 24/7 phone and chat
$0 stocks/ETFs, $0 Treasuries, $1/bond ($250 max)
MarketPro desktop now available to all self-directed clients (no minimum or trade requirement)
Single sign-on across BofA banking, credit card, and Merrill brokerage
Mortgage origination discounts and HELOC/auto loan discounts via Preferred Rewards
StockBrokers.com 2026 #1 Bank Brokerage

Weaknesses

No fractional shares (DRIP only)
No crypto, no futures, no forex
No 24-hour overnight trading; extended hours end at 8 p.m. ET
OTC and penny stocks effectively banned (≤ $5 or ≤ $300M market cap)
Default cash sweep yields ~0.01% APY — among the worst in the industry
Margin rate 8.625% at debit balances under $25K — uncompetitive vs. IBKR Pro ~5.83%
No paper trading account — meaningful gap for new options traders
J.D. Power 2025 Digital Experience Study ranked Merrill Edge dead last (674)
January 2025 $25M SEC penalty for cash sweep program compliance failures
Level II quotes gated at $1M assets or 30+ trades/quarter

Best for

Sub-ratings

Commissions & fees: 3.8
Platforms & tools: 3.8
Mobile app: 3.5
Research: 5.0
Education: 4.0
Customer service: 4.0
Range of investments: 3.0
Active trading: 3.3

Pricing & fees

Full fee schedule

Category	Item	Price	Notes
Stocks & ETFs	US stock / ETF commission	$0	—
Options	Options base + per-contract	$0 + $0.65	Up to Level 5 (uncovered) approval
Mutual funds	Mutual funds — NTF	$0	800+ NTF funds; $40 short-term redemption if held < 90 days
Mutual funds	Mutual funds — non-NTF	$19.95	—
Bonds	US Treasuries (new issue & secondary)	$0	—
Bonds	Corporate / muni bonds	$1 / bond	$10 min, $250 max
Account & service fees	Broker-assisted trade	$29.95	—
Account & service fees	Full ACAT transfer-out	$49.95	Partial transfer $0

PFOF: Does not accept payment for order flow on equities; accepts PFOF on options. Does NOT accept PFOF on equities — material differentiator. Participates in exchange-sponsored options PFOF programs on NYSE American, NYSE Arca, Cboe, and Nasdaq options exchanges.

Margin rates vs. peers

Effective interest rate by debit balance. Lower is better. Step-line — rate is constant within each tier.

Cash sweep

Default cash sweep

0.01%(Merrill default sweep (or Preferred Deposit at $100K+))

Default sweep is ~0.01% for most balances. Preferred Deposit (non-sweep) pays 2.89% at < $2.5M, scaling to 3.67% at $100M+, but requires a $100K minimum and manual movement.

As of May 13, 2026

Asset coverage

US stocks (NYSE/Nasdaq/AMEX)
Yes
OTC / penny stocks
Effectively banned since 2018 (≤ $5 or ≤ $300M market cap)
No
Fractional shares
DRIP only
No
Options (Levels 1–5)
Multi-leg strategies on web and MarketPro
Yes
Mutual funds
800+ NTF, ~4,000 total
Yes
ETFs
Yes
US Treasuries
New issue + secondary, $0
Yes
Corporate / muni bonds, CDs
$1/bond, $250 max
Yes
Forex
No
Futures
No
Crypto (direct)
No
International stocks
ADRs only; no direct international stock trading
Limited
Pre-market trading
7:00 – 9:30 a.m. ET, limit orders only
Yes
After-hours trading
4:00 – 8:00 p.m. ET, limit orders only
Yes
24-hour overnight equity trading
No

Platforms & tools

Platform deep-dive

Web
Merrill Edge Web
- Single sign-on with Bank of America accounts
- Integrated trade ticket, screening, and BofA Global Research
- Idea Builder, Stock Story, Fund Story narrative tools
- +1 more — see platform deep-dive
Desktop
MarketPro
- Streaming quotes and 100+ technical indicators
- 25 movable windows; customizable workspaces
- OptionsPlay strategy builder
- +1 more — see platform deep-dive
Now available to all self-directed clients (legacy $50K / 15-trade gate removed)
Mobile
Merrill Edge Mobile
- Embedded within BofA app + standalone Merrill Edge app
- Mobile check deposit; biometric login
- Lighter on options tools than Robinhood or Webull
API
Public retail API
- Not available to retail customers
No public algo / API access

Key capabilities at a glance

Commission: $0
Fractional shares: No
Extended hours: Yes
Overnight (24/5): No
Options: $0.65
OTC access: 3/5 full, 1/5 limited
Short locate: none

OTC market access by tier

OTC Markets organises non-exchange-listed securities into five tiers by disclosure quality. Merrill Edge’s coverage:

OTCQXFull
OTCQBFull
Pink CurrentFull
Pink LimitedLimited
Grey MarketNo

Awards & recognition

2026 #1 Bank Brokerage — StockBrokers.com
2026 4-star Overall — StockBrokers.com
2026 4.5/5 Overall — NerdWallet

Recent changes

May 26, 2026product
Preferred Rewards renames to "BofA Rewards" with new four-tier structure (Member / Preferred Plus / Preferred Honors / Premier)
2026product
MarketPro qualification requirements removed — now available to all self-directed clients without minimum or trade gate
Jan 2025regulatory
$25M SEC penalty for cash sweep program compliance failures (Jan 2022 – April 2024)
2025regulatory
J.D. Power 2025 Digital Experience Study ranked Merrill Edge 674 — last among ranked DIY platforms

Frequently asked

What is BofA Preferred Rewards / BofA Rewards?: A tiered loyalty program combining Bank of America and Merrill Edge balances. At Platinum Honors ($100K+ combined), members receive a 75% credit card cash-back bonus, advisory fee discounts, mortgage origination discounts, and no-fee ATM access. The program renames to "BofA Rewards" on May 26, 2026 with a new four-tier structure (Member / Preferred Plus / Preferred Honors / Premier).
Does Merrill Edge offer fractional shares or crypto?: No on both. Merrill does not support fractional shares (DRIP only) or any crypto product. For fractional investing, look at Fidelity ($1 minimum), Schwab Stock Slices, Robinhood, SoFi, or Public. For crypto, look at Robinhood, Webull, SoFi, or IBKR.
Does Merrill Edge accept payment for order flow?: No on equities — a material differentiator. Merrill reports 99.15% of orders execute at or better than NBBO with $42.50 average price improvement on 1,000-share market orders. It does, however, participate in exchange-sponsored options PFOF programs on Nasdaq, Cboe, NYSE Arca, and NYSE American options exchanges.
What is the Merrill Edge margin rate?: Tiered off a 5.25% Base Lending Rate (May 2026): 8.625% under $25K, 6.125% on $100K–$499K, down to 4.50% above $10M. Competitive at the high end but expensive at the low end — IBKR Pro starts at ~5.83% for $25K balances.
Why is the Merrill Edge cash sweep yield so low?: The default sweep pays around 0.01% APY for most balances — a structural choice that drew a $25M SEC penalty in January 2025. To earn meaningful yield, move cash manually to Preferred Deposit (2.89% APY at < $2.5M, scaling higher with balance, $100K minimum). Compared to Fidelity SPAXX (3.26% automatic), this is poor.
Can I trade OTC or penny stocks on Merrill Edge?: Effectively no. Bank of America banned new purchases of OTC securities priced ≤ $5 or with market caps ≤ $300M across the wealth franchise in 2018. NASDAQ/NYSE micro-caps are unaffected, but pink sheets and OTC tiers are off-limits. For OTC access, use Firstrade, Schwab, IBKR, or TradeStation.
Is Merrill Edge good for beginners?: Yes if you already bank with Bank of America — the integration is a real advantage. No if you want fractional shares or a polished standalone mobile app, where Fidelity, Robinhood, or SoFi are better fits.