Quick heads-up: a “Bank of America” Roth IRA is actually held at Merrill. The self-directed version is beginner-friendly as long as you stick to ETFs.
What’s good:
- $0 account fee and $0 commissions for online US stocks/ETFs.
- Huge ETF selection (VTI/ITOT, VXUS/IXUS, BND/AGG, or one-ticket asset allocation ETFs like AOA/AOM/AOK).
- If you’re chasing Bank of America Preferred Rewards, keeping assets at Merrill can boost your credit card rewards.
Watchouts I don’t see mentioned enough:
- Mutual funds can have transaction fees unless they’re on the no-transaction-fee list; the ultra-cheap Vanguard/Fidelity index mutual funds often aren’t. Using ETF versions avoids this.
- The default cash sweep yields very little. Don’t let contributions sit in cash-place trades soon after money lands.
- Transfer-out/closure fees exist (typically around $50). Check the current schedule before opening.
- Automation for tiny amounts is weaker. If you want fractional ETF shares and automatic recurring buys, Fidelity does that really well; Merrill is more manual.
If you’re okay placing a monthly ETF trade, Merrill is totally workable and low-cost. If you want hands-off automation on $10-$25 increments, Fidelity is smoother. Either way, go paperless, avoid pricey mutual funds, and focus on low-cost ETFs.
