5 Merrill Lynch alternatives & competitors: what are my options?
Merrill Lynch is a well-known, well-established wealth management advisory firm. Still, there are a number of popular competitors and alternatives on the market you should also explore before making a decision.
Leading Merrill Lynch competitors include renowned financial institutions such as Charles Schwab, Morgan Stanley, Goldman Sachs, Vanguard, and Edward Jones.
These companies provide diverse financial services, encompassing advisory services, investment management, retirement planning, wealth management, and investment banking.
These competitors' financial strength and market reach are significant, with firms like Charles Schwab boasting more than $8 trillion in total client assets.
Finding an expert financial advisor is made easy with Unbiased.
Who is Merrill Lynch?
Established in 1914, Merrill Lynch & Co., formally Merrill Lynch, Pierce, Fenner & Smith Incorporated, was originally an American investment bank. In 2009, it was acquired by Bank of America and became part of BofA Securities.
Today. Merrill Lynch operates as a wealth management division of Bank of America and remains a prominent player in the financial services industry.
Renowned for its full-service brokerage model, this public company primarily caters to affluent individuals and families, providing comprehensive financial advisory services.
Merrill Lynch financial advisors are highly sought after, and the firm also offers investment management, retirement planning, estate planning, tax strategies, and philanthropic guidance.
Who are Merrill Lynch’s competitors?
| Company | Founded | Headquarters (HQ) | Assets Under Management (AUM) |
|---|---|---|---|
| Company | Founded | Headquarters (HQ) | Assets Under Management (AUM) |
| Merrill Lynch | 1914 | NYC, NY | $2.75 trillion |
| Goldman Sachs | 1869 | NYC, NY | $2.81 trillion |
| Vanguard | 1975 | Malvern, PA | $7.2 trillion |
| Edward Jones | 1922 | St. Louis, MO | $2 trillion |
| Charles Schwab | 1971 | Westlake, TX | $7.38 trillion |
| Morgan Stanley | 1935 | NYC, NY | $1.19 trillion |
As one of the many large firms in the wealth management and financial advisory sector, Merrill Lynch operates in a dynamic and competitive landscape.
It, therefore, faces competition from various established financial institutions, ranging from large multinational corporations to specialized boutique firms.
All Merrill Lynch competitors are vying for the business of high-net-worth individuals and families seeking personalized financial solutions.
The following are the most prominent Merrill Lynch competitors you should be aware of:
1. Goldman Sachs
Founded in 1869, Goldman Sachs is a public company globally recognized for its investment banking, securities, and investment management services. It is headquartered in New York City and has offices worldwide.
Assets under management (AUM):
$2.81 trillion
Fee:
Advisory fees range from 1.90% (up to $10M) to 1.30% (above $250M).
Fee structure:
Percentage of AUM, with additional fees for markups, commissions, and family office services.
Minimum account sizes:
$10 million minimum investment.
Goldman Sachs boasts a market capitalization of roughly $110 billion (as of August 2024). The firm specializes in providing diverse financial services, including investment banking, institutional client services, investing and lending, and asset management, cementing its position as a formidable competitor in the financial landscape.
2. Vanguard
Founded in 1975 and headquartered in Malvern, Pennsylvania, Vanguard is an internationally prominent investment management company celebrated for its steadfast commitment to low-cost index funds and ETFs. This makes it a preferred choice for individual and institutional investors seeking long-term growth.
Assets under management:
$7.2 trillion
Fee:
0.05%-0.3%
Fee structure:
Fee-based and fee-only
Minimum account sizes:
$50,000 (for a personal advisor)
This privately held, client-owned company, with offices in major financial centers worldwide, manages over $7 trillion in assets as of 2024.
3. Edward Jones
Established in 1922 and headquartered in St. Louis, Missouri, Edward Jones is one of Merrill Lynch's biggest competitors.
Assets under management:
$2 trillion
Fee:
0.5%-1.35%
Fee structure:
Fee-based
Minimum account sizes:
$5,000 or $25,000 depending on account type
The firm stands out in the financial services sector due to its extensive network of over 15,000 branch offices across the US and Canada. These offices enable its financial advisors to provide personalized investment guidance and financial planning services to individuals and small businesses.
As a private partnership with an estimated annual revenue exceeding $12 billion, Edward Jones focuses on fostering long-term relationships with clients, assisting them in achieving their financial goals through tailored investment strategies, retirement planning, and insurance solutions.
4. Charles Schwab
Another of Merrill Lynch's biggest competitors, Charles Schwab, was established in 1971 and is currently centered in Westlake, Texas.
Assets under management:
$7.38 trillion
Fee:
0.80% and decrease at higher asset levels
Fee structure:
Fee-based
Minimum account sizes:
$500,000
The firm has established itself as a leading force in the financial world. It offers a wide spectrum of investment, banking, and advisory services that cater to the diverse needs of investors and traders. The firm boasts a large number of branch offices and a significant online presence across the United States.
This publicly traded company also covers total client assets exceeding $8 trillion (June 2023), underscoring its significant reach and influence in the financial market.
5. Morgan Stanley
Founded in 1935 and based in New York City, Morgan Stanley is a publicly traded financial powerhouse offering a suite of investment banking, securities, wealth management, and investment management services to a diverse clientele, including corporations, governments, institutions, and individuals.
Assets under management:
$1.19 trillion
Fee:
Annual advisory fees up to 2%, with additional platform and manager fees.
Fee structure:
Percentage of AUM, fixed fees for specific services, and commissions.
Minimum account sizes:
$5 million for Private Wealth clients; $5,000 for Access Investing.
With a strong presence in major financial centers worldwide and a market capitalization of roughly $140 billion, Morgan Stanley excels in providing expertise across various financial disciplines, solidifying its position as a formidable competitor in the global market.
"Experience matters, so check the firm’s track record in handling clients with similar needs.
Transparency is also key, so ensure they clearly explain their fees and services. Choose a firm or individual who aligns with your financial goals and communicates effectively, as a strong client-advisor relationship is essential for long-term success.
Lastly, a good financial advisor relationship is ideally a long-term one, so try to find one you'll be comfortable working with through the most important periods of your life."
Which is the best financial advisory firm for me?
The best financial advisor firm ultimately depends on what your needs are as a client.
Any of the above Merrill Lynch alternatives will likely meet your needs, but some will be more compatible with you than others. You can use the factors listed below to determine which you should choose.
Budget – Naturally, each firm has its own pricing systems to consider. The bigger your budget, the more services and expert guidance you can afford.
Communication style – People typically work with their chosen financial advisor over a number of years throughout all of life’s big events. Therefore, it’s key that you choose someone you get along with and with whom you can easily communicate.
Service requirement – Some firms specialize in certain services, so it's best to pick one with a high level of experience in your field of interest.
Advice delivery – Financial advisor firms have different communication and customer management styles. Pick one that delivers advice in a way you find comfortable and easy to understand.
Experience level – If you need high-level advice and input, you’ll want to opt for a firm with more experience in its field. Smaller, less seasoned companies can easily handle lower-stakes financial management like savings and retirement.
Get expert financial advice
While Merrill Lynch’s financial advisor services remain popular with many who seek financial services, the market offers several other strong contenders.
Established firms such as Charles Schwab, Morgan Stanley, Goldman Sachs, Vanguard, and Edward Jones cater to diverse financial needs, from investment management and retirement planning to wealth management and investment banking.
Let Unbiased match you with an SEC-regulated financial advisor who can offer expert financial advice that is tailored to your needs and goals.
Writers
Our team of writers, who have decades of experience writing about personal finance, including investing and retirement, are here to help you find out what you must know about life’s biggest financial decisions.