Ameriprise vs Merrill Lynch — Which Advisor Earns the Fee?

You’ve got a meeting scheduled with an Ameriprise advisor this week, but a colleague at work swears by Merrill Lynch. Both charge real money for financial advice, and both promise a personalized approach. The question is whether either one is actually worth what they charge — and if so, which one gives you more for the fee.

I’ve spent a lot of time comparing these two firms, and the answer depends less on the company name and more on what you actually need from an advisor.

How Ameriprise and Merrill Lynch Make Money

Ameriprise Financial started as the financial planning arm of American Express before spinning off in 2005. Their advisors are typically independent contractor-style, operating under the Ameriprise brand. The firm leans heavily into financial planning — they’ll build you a comprehensive plan covering retirement, insurance, estate planning, and investments. Advisory fees run between 1% and 2% of assets under management for most clients, with the exact rate depending on account size and program.

Merrill Lynch is Bank of America’s wealth management division. Since the BofA acquisition in 2009, Merrill advisors have access to the full Bank of America banking ecosystem — Preferred Rewards tiers, lending products, and integrated banking. Advisory fees are similar to Ameriprise, generally 1% to 1.85% of assets under management. Merrill Edge, the self-directed side, offers zero-commission trades, but that’s a different product from Merrill’s advisor-led accounts.

Both firms can also earn revenue from mutual fund revenue sharing, proprietary products, and lending — which means the fee you see isn’t always the full cost of doing business with either firm.

The Financial Planning Experience

Ameriprise markets itself as a planning-first firm, and there’s some truth behind the marketing. Their advisors tend to lead with a comprehensive financial plan before recommending investments. The planning process typically covers retirement projections, risk assessment, insurance gaps, estate planning basics, and tax-aware investing strategies. For clients who have never had a formal financial plan, this structured approach provides genuine value.

Merrill Lynch advisors can deliver equally thorough financial plans, but the firm’s culture historically leaned more toward investment management than holistic planning. That’s been shifting — Merrill has invested heavily in planning tools and training — but the emphasis still tilts toward portfolio management. If you walk into a Merrill office, the conversation is more likely to start with your investment allocation than your insurance coverage.

For someone who needs a financial plan built from scratch, Ameriprise typically delivers a more structured planning experience. For someone who already knows what they want and needs investment execution with banking integration, Merrill is the stronger fit.

Investment Platform and Options

Both firms offer access to a wide range of investments — mutual funds, ETFs, individual stocks and bonds, managed accounts, and alternative investments for qualified clients. Neither firm is going to leave you wanting for options.

Where they differ is the banking integration. Merrill’s connection to Bank of America creates real perks: Preferred Rewards program tiers that reduce advisory fees, credit card rewards bonuses, and mortgage rate discounts based on your investment balance. If you bank with BofA and invest with Merrill, the combined benefits can offset a meaningful chunk of advisory fees.

Ameriprise has partnerships with banks for lending products but nothing approaching Merrill’s level of integration. What Ameriprise does offer is a wider selection of third-party investment managers and model portfolios through their advisory platforms. For clients who want access to specific investment managers or strategies, Ameriprise’s platform is often more flexible.

Who Should Pick Which

Go with Ameriprise if: You want comprehensive financial planning as the foundation, you don’t bank with Bank of America, and you value having access to a wide range of third-party investment options. Ameriprise works well for people in the accumulation phase who need help building a full financial strategy, not just managing a portfolio.

Go with Merrill Lynch if: You already bank with Bank of America, want the integrated benefits of Preferred Rewards, and care more about investment management than financial planning. Merrill is hard to beat for BofA customers because the combined ecosystem creates real cost savings that offset advisory fees.

The Verdict

If you’re a Bank of America customer, Merrill Lynch wins on total value because the Preferred Rewards benefits make the advisory fees significantly more palatable. If you’re not a BofA customer and you want a proper financial plan — not just portfolio management — Ameriprise delivers a better planning experience for the money.

Neither firm is a bad choice. Both charge real fees for real advice, which puts them ahead of the commission-only brokerages that used to dominate the industry. But the right pick depends on your banking relationship and whether you need a planner or a portfolio manager. Those are different jobs, even though both firms claim to do both.