Both Fidelity and Charles Schwab are great brokerage options for beginner investors, so you can't go wrong signing up for either. However, Fidelity's robo-advisor is easier to qualify for, with no minimum balance requirement and no advisory fees for accounts under $25,000.
Your assets held at Merrill are protected by the Securities Investor Protection Corporation.
Cons Explained
Higher margin rates: Schwab has higher margin rates than some of its competitors. The current base rate is 10.75% as of December 2024, and the effective rates currently range from 12.575% to 10.825%. No fractional-share ETF trades: Schwab does not offer fractional-share trading for ETFs.
Welcome to Schwab Private Client Services.
Clients who have more than one million dollars in qualifying assets at Schwab automatically get access to these benefits, including—a dedicated Financial Consultant, access to a wide range of specialists, tailored solutions, and pricing advantages.
Economic Uncertainty: Economic downturns, rising interest rates, and market volatility pose threats to Charles Schwab Corp's business model. These factors can affect client investment behavior, asset valuations, and ultimately, the company's revenue and profitability.
According to a class action lawsuit filed in the US District Court for the Southern District of New York, the firm breached its fiduciary duty by offering much lower interest rates compared to competitors on its client cash sweep accounts, while not disclosing that fact to its customers.
The standard FDIC insurance provides up to $250,000 per depositor per insured bank based on an ownership category. So you could get insurance for an individual account and additional insurance for a joint account. The same applies to trust accounts. All of the deposits at Schwab Bank are protected by FDIC insurance.
How do I withdraw money from my Merrill Edge Self-Directed account? Log in to your account and select Transfer Money & Securities under the Accounts tab. From there, you can select the withdrawal method and follow the on-screen instructions.
Your securities are protected at Schwab.
This is the legal requirement for all U.S. broker-dealers. Your segregated assets are not available to general creditors and are protected against creditors' claims in the unlikely event that a broker-dealer becomes insolvent.
Common questions. What are the fees for Schwab Wealth Advisory? The annual fee for Schwab Wealth Advisory starts at 0.80% of assets and decreases at higher asset levels (see chart). Enrollment minimum is $500,000.
Charles Schwab has the Financial Strength Rank of 4.
GuruFocus Financial Strength Rank measures how strong a company's financial situation is.
Merrill Lynch's brand is ranked #568 in the list of Global Top 1000 Brands, as rated by customers of Merrill Lynch. Morgan Stanley's brand is ranked #199 in the list of Global Top 1000 Brands, as rated by customers of Morgan Stanley.
U.S. Trust, Bank of America's private bank which caters to ultra-high net worth clients, will become Bank of America Private bank, and Merrill Lynch Private Banking & Investment Group will become Merrill Private Wealth Management, dropping the "Lynch." In the past, rebranding has faced some opposition.
There are hundreds of branches across the country and thousands of financial consultants, both in branches and available online. Search tools allow clients to filter for branch locations as well as financial consultants. Charles Schwab Corp. has an A+ rating with the Better Business Bureau.
CDs, high-yield savings accounts, and money market funds are the best places to keep your cash when it comes to interest rates. And Treasury bills still offer decent yields at the lowest risk.
Is it safe to keep more than $500,000 in a brokerage account? It is safe in the sense that there are measures in place to help investors recoup their investments before the SIPC steps in. And, indeed, the SIPC will not get involved until the liquidation process starts.
The company became the subject of widespread concern during the 2007 to 2008 financial crisis. In November 2007, Merrill Lynch & Co. announced billions in losses related to its portfolio of subprime mortgages and related derivative products.
92% client satisfaction. Merrill Lynch Wealth Management clients surveyed rated satisfaction with their advisor a 9 or 10.
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.
Charles Schwab is one of the best overall IRA providers, with high-quality customer service, no account minimum and low fees. The company offers a large selection of no-transaction-fee funds, gives users access to extensive research and charges no commission for stock, options and ETF trades.
Political and economic views
Schwab is a Republican, who has donated heavily to the party (including the National Republican Senatorial Committee and the National Republican Congressional Committee).
Charles Schwab-owned companies ranked #1 and #2 among DIY investors in the 2024 U.S. Self-Directed Investor Satisfaction Study, reinforcing the combined firm's strength and leadership as it brings the best of Schwab and Ameritrade together for clients.