Bank of America Merrill Lynch to debut discount online brokerage Monday; trades set at $8.95

Bank of America discount brokerage set to debut

NEW YORK — Bank of America Merrill Lynch plans to launch a discount online brokerage aimed at young and new investors on Monday, a spokeswoman said Thursday.

The service, called Merrill Edge, is intended to compete with existing online trading choices offered by companies like TD Ameritrade, E-Trade Financial Corp. and Charles Schwab Corp.

Trades through the service dubbed Merrill Edge will cost $8.95 each. Customers with at least $25,000 in an account will get 30 free online equity trades per month.

E-Trade and TD Ameritrade users currently pay $9.99 per trade. Schwab charges $8.95.

About 500,000 customers who now use the existing online brokerage services offered by Bank of America and Merrill Lynch will be transferred to Merrill Edge in the next few months. The service will allow linked access to banking, credit, retirement and investment products.

The Charlotte, N.C.-based bank bought the investment firm in 2009.

In addition to the online component, Merrill Edge will offer telephone and mobile access. Customers will also be able to connect to the service through Bank of America’s huge network of branches — 6,000 throughout the country — and its 18,000 ATMs.

Merrill Lynch has an army of about 15,000 brokers that generally work with affluent investors. Their customers will be able to use the online service as well as consult advisers.

Bank of America shares closed trading down 5 cents at $15.82.