Like other brokerage firms, Merrill uses a compensation grid that determines advisor pay based on how much revenue each individual or team generates. For its 2024 comp plan, the company eliminated a policy that had reduced potential pay associated with brokerage transactions and it added two bonuses.
The three main ways advisors get money are via commission, hourly-based fees, and advisory fees. Rates and average fees within these frameworks can vary widely, and some advisors may combine two or more structures.
Merrill pay FAQs
The salary trajectory of a Financial Advisor ranges between locations and employers. The salary starts at $97,090 per year (estimate) and goes up to $305,213 per year (estimate) for the highest level of seniority.
Recognized more than any other firm, we are proud of the 1,820 advisors named to Forbes 2023 "America's Top Wealth Advisors Best-in-State" list.
The commission may be discounted and is subject to a minimum charge. A portion of the commission is paid to your Advisor. Commissions range from 0.70% – 15.00% of the principal value of the contracts, plus $3.00 – $9.00 per contract.
Merrill Lynch focuses on high-net-worth clients and offers personalized wealth management and a suite of premium financial services, albeit at a higher cost. On the other hand, Fidelity is a more accessible platform for a broader range of investors.
According to InvestmentNews data, Merrill Lynch had a net drop of 1,043 financial advisors in 2021, the year after Covid-19 brought most broker movement to a standstill. That fell to a net decline of 703 financial advisors in 2022 and, last year, to a drop of 445, or less than half the amount seen two years earlier.
The average Client Associate base salary at Merrill is $62K per year. The average additional pay is $6K per year, which could include cash bonus, stock, commission, profit sharing or tips.
Industry standards show that financial advisor fees generally range between 0.5% and 1.5% of AUM annually. Placement of a 2% fee may appear steep compared to this average. However, this fee might encompass more comprehensive services or cater to more unique, high-maintenance portfolios.
Most millionaires likely use some type of financial advisor to grow and protect their wealth. Whether that is an investment manager or wealth advisor can vary but not using the financial expertise of an advisor to help grow your wealth could be risky unless you have the right knowledge and skills to do it yourself.
Very generally, having between $50,000 and $500,000 of liquid assets to invest can be a good point to start looking at hiring a financial advisor. Some advisors have minimum asset thresholds. This could be a relatively low figure, like $25,000, but it could also be higher, such as $500,000, $1 million or even more.
Merrill Guided Investing requires a $1,000 minimum investment and charges an annual management fee of 0.45%. If you're looking for access to a human advisor along with your investing account, Merrill offers that for a steeper fee.
Commissions. In this type of fee arrangement, a financial advisor makes their money from commissions. Advisors earn these fees when they recommend and sell specific financial products, such as mutual funds or annuities, to a client. These are often payable in addition to the above client fees.
So, the answer to the question “does Merrill Lynch have fiduciaries?” is: yes, they do. But it's also worth noting that not all of them are fiduciaries.
This fee can range from 0.5% to 2%. Advisors that charge a percentage usually want to work with clients with a minimum portfolio of about $100,000. This makes it worth their time and will allow them to make about $1,000 to $2,000 a year.
Bottom Line. On average, financial advisors charge between 0.59% and 1.18% of assets under management for their asset management. At 1%, an advisor's fee is well within the industry average. Whether that fee is too much or just right depends entirely on what you think of the advisor's services and performance.
Overwhelming workloads, back-to-office complaints, and frustrations over pay: Why Merrill Lynch's support staff is leaving. Bank of America's wealth-management arm says it values client associates, the staffers who help run financial advisors' practices.
The company is a registered investment advisor firm and a broker-dealer under the name, Merrill Lynch, Pierce, Fenner & Smith Inc. J.D. Power's Investor Satisfaction Study ranks the firm in seventh place with a score of 725 out of 1,000, just below the national average.
92% client satisfaction. Merrill Lynch Wealth Management clients surveyed rated satisfaction with their advisor a 9 or 10.
Investment options
As ranked by StockBrokers.com among 18 brokers, Merrill Edge secures the 7th spot, whereas J.P. Morgan stands at 10th. This subtle difference highlights Merrill Edge's slight advantage in terms of breadth and depth of investment offerings.
Your assets held at Merrill are protected by the Securities Investor Protection Corporation.