Firstrade vs Merrill Edge (2026): Best for Options Trading?
Firstrade and Merrill Edge both offer broad self-directed brokerage accounts, but Firstrade competes on zero contract fees while Merrill Edge leans on research and Bank of America integration.
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Firstrade's zero per-contract fee on options is unique in the industry and represents real savings for active options traders. The platform sacrifices advanced analytics and research depth for pure cost efficiency. If your priority is minimizing trading costs above all else, or if you value bilingual Chinese-English support, Firstrade is the clear winner on price.
Merrill Edge is the clear winner for Bank of America customers. The Preferred Rewards integration alone can be worth hundreds of dollars per year in credit card bonuses and fee waivers. As a standalone trading platform it's solid but not exceptional — the real value is the banking ecosystem integration.
Side-by-Side Comparison
How we review: Our team opens real accounts and tests every platform hands-on. We evaluate on commissions, tools, and execution — never influenced by affiliate relationships. Editorial policy →
| Feature | Firstrade | Merrill Edge |
|---|---|---|
| Our Rating | 3.9 | 4 |
| Commissions | Free | $0.65/contract |
| Min. Deposit | $0 | $0 |
| Options Trading | Yes | — |
| Free to Close Options | No | No |
| Paper Trading | — | — |
| Account Types | Individual, IRA, Roth IRA | Individual, IRA, Roth IRA |
| Regulated | FINRA / SIPC | FINRA / SIPC |
Firstrade — Full Review
Firstrade has operated as a discount brokerage since 1985, well before the commission-free revolution that swept the industry in 2019. When most brokers dropped stock commissions to zero, they retained per-contract options fees — typically $0.65. Firstrade went further, eliminating the per-contract fee entirely. This makes it the cheapest options broker by a clear margin. For context: a trader executing 100 options contracts per month saves $65/month vs. a $0.65/contract broker, or $780 per year. For high-volume traders, the annual savings can reach thousands of dollars. The platform's strong presence in the Chinese-American community dates back decades. Firstrade was one of the first US brokerages to offer full Chinese-language support — including the platform interface, customer service in Mandarin and Cantonese, and Chinese-language educational content. This has built a loyal user base among first-generation Chinese-American investors who prefer conducting financial transactions in their native language. The trading platform itself is web-based and mobile, offering a clean interface for placing trades, viewing options chains, and managing positions. Options chain displays include Greeks, implied volatility, open interest, and volume. Multi-leg options strategies (spreads, straddles, condors) can be entered as single orders. Basic charting with common technical indicators is available, though it lacks the depth and customization of platforms like thinkorswim, TradeStation, or even Webull. Free Level 2 options data gives traders visibility into the order book — bid/ask depth and size at each price level — which is typically a paid add-on at other brokers. Research tools are limited compared to major competitors. Firstrade provides basic stock screeners, market news, and some third-party analyst ratings, but doesn't offer the depth of Morningstar reports (Fidelity), BofA Securities research (Merrill Edge), or Morgan Stanley analysis (E*Trade). Active traders who rely on broker-provided research will likely need to supplement with external sources. Mutual fund access is a hidden strength — Firstrade offers commission-free trading on over 11,000 mutual funds, including funds from Vanguard, Fidelity, T. Rowe Price, and other major families. This is competitive with the largest brokers. Account types include individual taxable accounts, Traditional IRA, Roth IRA, rollover IRA, and joint accounts. Customer support is available by phone, email, and chat, with bilingual support in English, Mandarin, and Cantonese. Response times can be slower than larger brokers during peak periods. The mobile app provides basic trading functionality but feels dated compared to modern fintech interfaces — it gets the job done but won't win any design awards. FINRA-regulated and SIPC-insured up to $500,000, Firstrade operates with the same regulatory protections as the largest US brokerages.
Merrill Edge — Full Review
Merrill Edge's value proposition is fundamentally tied to the Bank of America ecosystem. The Preferred Rewards program has four tiers based on combined BofA and Merrill Edge balances: Gold ($20K+), Platinum ($50K+), Platinum Honors ($100K+), and Diamond ($1M+). At the Platinum Honors tier, BofA credit cards earn 75% more points — turning a 2% cash back card into effectively 3.5% — and you receive 100 free stock and ETF trades per month (though this matters less now with commission-free trading). Diamond members get dedicated advisory support and the highest rewards multipliers. The Merrill Edge platform itself offers a clean, web-based trading interface called MarketPro that provides real-time streaming quotes, watchlists, customizable charts, and options chain analysis. While it lacks the depth of thinkorswim or Power E*Trade, it handles basic to intermediate options strategies competently. BofA Securities research is a genuine differentiator — these are the same analyst reports produced for institutional clients, covering thousands of stocks with buy/sell/hold ratings, price targets, and detailed sector analysis. Morningstar fund ratings are included free for ETF and mutual fund selection. Guided Investing is Merrill's robo-advisor offering, providing professionally managed portfolios starting at $1,000 with a 0.45% annual advisory fee — competitive with Betterment and Wealthfront. For higher balances, Merrill offers access to full-service financial advisors through the broader Merrill Lynch wealth management division. Retirement account support is comprehensive: Traditional IRA, Roth IRA, SEP-IRA, 529 college savings, and trust accounts are all available. The retirement planning tools integrate your full Bank of America financial picture — checking, savings, CDs, investments, and credit — into a single dashboard that provides holistic planning guidance. Customer service is available by phone, chat, and at Bank of America financial centers nationwide — the branch network is a significant advantage for investors who prefer in-person support. The mobile app integrates with the BofA mobile banking app, allowing seamless transfers and a unified view of all accounts.
The Verdict: Which Should You Choose?
Choose Firstrade if eliminating equity-options contract fees and keeping trading costs low matter more than premium research or an integrated banking relationship.
Choose Merrill Edge if Bank of America rewards, stronger research, and consolidated banking and investing outweigh paying standard per-contract options fees.