Merrill Edge - alternative

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tampaite
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Merrill Edge - alternative

Post by tampaite » Fri Jun 30, 2017 8:39 am

Starting October 1, 2017, maintaining a cash balance of $25,000 will no longer qualify you for $0 online stock and exchange-traded funds (ETF) trades.

Merrill Edge will no longer offer 30 $0 online stock and ETF trades per month when you maintain a $25,000 minimum balance in Bank of America® deposit accounts or cash in Merrill Edge® investing and trading accounts.
Got the above email stating that I will no longer qualify for 30 trades/month for maintaining at-least 25K

After 10/1 - I need to maintain 50K plus a checking account(which may have monthly fees) to get the 30 trades.

Any other brokerages willing to offer 30 free trades every month for $25K balance?

student
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Re: Merrill Edge - alternative

Post by student » Fri Jun 30, 2017 8:55 am

Do you normally keep $25,000 in their deposit accounts as cash? Such accounts pay almost no interest. The 50k requirement includes stocks and etfs.

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triceratop
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Re: Merrill Edge - alternative

Post by triceratop » Fri Jun 30, 2017 8:59 am

Unlikely. But are you sure you're optimizing for the right thing here? I take it this chunk of cash is your emergency fund. There are 11 month no penalty CDs for $25k balances which yield 1.5%. That may be more than you spend on commissions anyway. How much is your $25k balance earning?

In any case I would probably move my assets to a place like Vanguard or Fidelity where I pay no commissions for my favorite index funds, until I had the funds for free trades at a Merrill or a Schwab (they are sometimes willing to match Merrill but while you could try I doubt you'll have much luck getting free trades right now).

By the way I have a $50-100k balance at Merrill and I pay no bank fees.
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livesoft
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Re: Merrill Edge - alternative

Post by livesoft » Fri Jun 30, 2017 9:02 am

I understand that Merrill Edge has 30 free trades a month, but so what? That's like brokerages who have 10,000 no-transaction-fee mutual funds available. You aren't going to use 30 free trades in a month anyways ... or maybe I should write that you shouldn't have to use 30 free trades in a month.

I have 100 free trades per year per account at WellsTrade, but I am grandfathered into this great deal. Nevertheless, I use about 12 or less trades per account per year and usually under 3 trades per year.

So what do YOU really need? Do you need the TDAmeritrade deal of no-commission ETFs if you follow the rules? Or the Vanguard no-commission ETFs at Vanguard? Or the no-commission ETFs at Fidelity, Schwab, and whoever? Would the $2.95 commissions at WellsTrade work well enough? How about the $4.95 commissions at most other brokers? Can you put $50K into Merrill Edge?

Or do you really use 30 trades a month?
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tampaite
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Re: Merrill Edge - alternative

Post by tampaite » Fri Jun 30, 2017 9:09 am

livesoft wrote:I understand that Merrill Edge has 30 free trades a month, but so what? That's like brokerages who have 10,000 no-transaction-fee mutual funds available. You aren't going to use 30 free trades in a month anyways ... or maybe I should write that you shouldn't have to use 30 free trades in a month.

I have 100 free trades per year per account at WellsTrade, but I am grandfathered into this great deal. Nevertheless, I use about 12 or less trades per account per year and usually under 3 trades per year.

So what do YOU really need? Do you need the TDAmeritrade deal of no-commission ETFs if you follow the rules? Or the Vanguard no-commission ETFs at Vanguard? Or the no-commission ETFs at Fidelity, Schwab, and whoever? Would the $2.95 commissions at WellsTrade work well enough? How about the $4.95 commissions at most other brokers? Can you put $50K into Merrill Edge?

Or do you really use 30 trades a month?
I usually make 10 trades a month, sometimes more and sometimes less. I understand MerillEdge pays me no interest but I think that's offset by the free trades I get.

Not interested in trading ETFs - strictly for stocks only.

Are there any other brokerages that offer $0 trades per month for maintaining a certain balance?

student
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Re: Merrill Edge - alternative

Post by student » Fri Jun 30, 2017 9:26 am

I am afraid I don't quite understand how you can trade 10 times a month yet maintain $25,000 in cash at all time. It seems to be that you need $25,000 in cash plus $X that is used to trade stocks. So can you make $25,000 + $X >= $50,000? You mentioned about needing a checking account. You don't need to keep much there.

livesoft
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Re: Merrill Edge - alternative

Post by livesoft » Fri Jun 30, 2017 9:36 am

tampaite wrote:I usually make 10 trades a month, sometimes more and sometimes less. I understand MerillEdge pays me no interest but I think that's offset by the free trades I get.

Not interested in trading ETFs - strictly for stocks only.

Are there any other brokerages that offer $0 trades per month for maintaining a certain balance?
robinhood is supposed to have no commissions.
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triceratop
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Re: Merrill Edge - alternative

Post by triceratop » Fri Jun 30, 2017 9:41 am

student wrote:I am afraid I don't quite understand how you can trade 10 times a month yet maintain $25,000 in cash at all time. It seems to be that you need $25,000 in cash plus $X that is used to trade stocks. So can you make $25,000 + $X >= $50,000? You mentioned about needing a checking account. You don't need to keep much there.
You need not keep anything there. My balance is almost always $0.00, ticking up for a day when I need to pay my credit card bill.

If OP has $25,000 + $x >= $50k then they are set. That is, unless their trades go poorly and drop below $50k. An easy way to avoid that is to not trade.
"To play the stock market is to play musical chairs under the chord progression of a bid-ask spread."

tampaite
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Re: Merrill Edge - alternative

Post by tampaite » Fri Jun 30, 2017 9:51 am

student wrote:I am afraid I don't quite understand how you can trade 10 times a month yet maintain $25,000 in cash at all time. It seems to be that you need $25,000 in cash plus $X that is used to trade stocks. So can you make $25,000 + $X >= $50,000? You mentioned about needing a checking account. You don't need to keep much there.
You just need 25K in the account. it can be in cash or securities worth 25K.

I will check to see what kind of checking account they offer.

tampaite
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Re: Merrill Edge - alternative

Post by tampaite » Fri Jun 30, 2017 9:53 am

livesoft wrote:
tampaite wrote:I usually make 10 trades a month, sometimes more and sometimes less. I understand MerillEdge pays me no interest but I think that's offset by the free trades I get.

Not interested in trading ETFs - strictly for stocks only.

Are there any other brokerages that offer $0 trades per month for maintaining a certain balance?
robinhood is supposed to have no commissions.
Thanks but you can trade only via phone-app I believe and my phone connection sucks. plus they don't have much research and/or tools available.

student
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Re: Merrill Edge - alternative

Post by student » Fri Jun 30, 2017 10:02 am

tampaite wrote:
student wrote:I am afraid I don't quite understand how you can trade 10 times a month yet maintain $25,000 in cash at all time. It seems to be that you need $25,000 in cash plus $X that is used to trade stocks. So can you make $25,000 + $X >= $50,000? You mentioned about needing a checking account. You don't need to keep much there.
You just need 25K in the account. it can be in cash or securities worth 25K.
Interesting. This is not what I understood since the statement is
"Starting October 1, 2017, maintaining a cash balance of $25,000 will no longer qualify you for $0 online stock and exchange-traded funds (ETF) trades.
Merrill Edge will no longer offer 30 $0 online stock and ETF trades per month when you maintain a $25,000 minimum balance in Bank of America® deposit accounts or cash in Merrill Edge® investing and trading accounts. "

tampaite
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Re: Merrill Edge - alternative

Post by tampaite » Fri Jun 30, 2017 10:11 am

student wrote:
tampaite wrote:
student wrote:I am afraid I don't quite understand how you can trade 10 times a month yet maintain $25,000 in cash at all time. It seems to be that you need $25,000 in cash plus $X that is used to trade stocks. So can you make $25,000 + $X >= $50,000? You mentioned about needing a checking account. You don't need to keep much there.
You just need 25K in the account. it can be in cash or securities worth 25K.
Interesting. This is not what I understood since the statement is
"Starting October 1, 2017, maintaining a cash balance of $25,000 will no longer qualify you for $0 online stock and exchange-traded funds (ETF) trades.
Merrill Edge will no longer offer 30 $0 online stock and ETF trades per month when you maintain a $25,000 minimum balance in Bank of America® deposit accounts or cash in Merrill Edge® investing and trading accounts. "
Correct, I was responding to the other individuals posting.

Starting 10/1 - it's upped to 50K

tampaite
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Re: Merrill Edge - alternative

Post by tampaite » Fri Jun 30, 2017 10:14 am

There is no FREE checking account with Bank of America

Link: https://www.bankofamerica.com/deposits/ ... -accounts/

Bank of America Core Checking - You need monthly direct deposit of $250 or maintain 1.5K otherwise $12 fees.
Bank of America Interest Checking - Maintain 10K otherwise $25 fees.

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triceratop
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Re: Merrill Edge - alternative

Post by triceratop » Fri Jun 30, 2017 10:20 am

tampaite wrote:There is no FREE checking account with Bank of America

Link: https://www.bankofamerica.com/deposits/ ... -accounts/

Bank of America Core Checking - You need monthly direct deposit of $250 or maintain 1.5K otherwise $12 fees.
Bank of America Interest Checking - Maintain 10K otherwise $25 fees.
With Preferred Rewards many fees are waived. As I said, I have a free checking account.
"To play the stock market is to play musical chairs under the chord progression of a bid-ask spread."

livesoft
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Re: Merrill Edge - alternative

Post by livesoft » Fri Jun 30, 2017 11:41 am

tampaite wrote:Thanks but you can trade only via phone-app I believe and my phone connection sucks. plus they don't have much research and/or tools available.
I find it amusing that you need a broker with any research capabilities since research and tools are available on the internet essentially for free.

And I would never use robinhood myself either.
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greybus
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Re: Merrill Edge - alternative

Post by greybus » Sat Jul 01, 2017 11:44 am

If you are buying the same basket of stocks/ETF in the same percentages in every transaction, then you can use motif to trade 30 securities for $9.95. They also have a subscription service if you make more frequent transactions. Foliofn has an unlimited plan ($290/yr?) if you feel you need to trade more often than that but these are not market orders, only window trades.

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nedsaid
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Re: Merrill Edge - alternative

Post by nedsaid » Sat Jul 01, 2017 12:16 pm

I would be interested in your returns from the stocks you are trading. The more you trade, the greater risk of performance drag from incorrect sell/buy decisions, the dreaded "Nedsaid effect." Pretty much, what you sell tends to outperform what you buy to replace. My experience is that I make incorrect sell/buy decisions at a ratio of 2 to 1 or even 3 to 1. I don't even like to rebalance.

The academic research bears this out. Larry Swedroe has written articles about this effect, particularly with individual investors.

As Warren Buffett has famously said, as motion increases, investment returns decrease.
A fool and his money are good for business.

northtexan
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Re: Merrill Edge - alternative

Post by northtexan » Sat Jul 01, 2017 1:32 pm

depending on your balance with BoA and ML/MLedge determines if you qualify for the free trades. If you have a balance of over 50k with BoA and ML combined you qualify for 30 free trades. if you have over 100k you qualify for 100 free trades.

David Scubadiver
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Re: Merrill Edge - alternative

Post by David Scubadiver » Wed Oct 11, 2017 4:23 pm

Which is to say, their promotion terms are confusing. You don't need any cash at all to be a preferred rewards member. If you don't have 50,000 in securities and/or cash, you won't qualify anymore. But if you have the $50,000 you qualify. Consider moving your IRA over to them if it is not already there.

I LOVE getting free trades. I buy and sell a lot and I like not worrying about commissions when I do so.

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