Feeling a little overwhelmed by your Merrill Edge portfolio and thinking it's time to sell some shares? You're in the right place! Selling stocks can be a strategic move, whether you're rebalancing your portfolio, taking profits, or generating cash. This comprehensive guide will walk you through the process on Merrill Edge, making it as smooth and straightforward as possible.
Let's dive in and get those shares sold!
A Step-by-Step Guide to Selling Stock on Merrill Edge
Selling stock on Merrill Edge is a relatively simple process once you understand the various options and steps involved. Here's a detailed breakdown:
Step 1: Log In and Navigate to Your Portfolio
Ready to access your investments? The first thing you need to do is securely log in to your Merrill Edge account.
Access the Website: Open your web browser and go to the official Merrill Edge website (merrilledge.com).
Enter Credentials: Locate the "Log In" button, usually in the top right corner, and enter your User ID and Password. If you have two-factor authentication enabled, you'll need to complete that step as well.
Find Your Accounts: Once logged in, you'll typically land on a dashboard or summary page. Look for a section like "My Accounts," "Holdings," or "Portfolio" to view your current investments. This is where you'll see a list of all the stocks, ETFs, mutual funds, and other assets you hold.
Step 2: Select the Stock You Wish to Sell
Now that you're in, let's pinpoint the stock you want to sell.
Identify the Security: From your portfolio view, scroll through your holdings or use a search bar if available, to find the specific stock you intend to sell.
Initiate a Trade: Once you've located the stock, there will typically be an option next to it or on its detail page to "Trade," "Sell," or "Place Order." Click on this.
Step 3: Configure Your Sell Order
This is where you specify the details of your sale. Pay close attention to these options, as they directly impact how and when your shares are sold.
Sub-heading: Choose Your Action: "Sell"
On the trading screen, ensure that the "Action" or "Type of Trade" is set to "Sell." This is crucial to prevent accidentally buying more shares.
Sub-heading: Enter the Quantity of Shares to Sell
Specify Shares: In the designated field, enter the exact number of shares you wish to sell. You can choose to sell all your shares or just a portion.
Tax Lot Selection (Optional but Important for Taxes): Merrill Edge, by default, often uses the "First-In, First-Out" (FIFO) method for selling shares, meaning the shares you acquired earliest are sold first. However, you may have the option to select specific tax lots. This is particularly useful for tax planning, as it allows you to choose shares with a higher cost basis to minimize capital gains, or those with a loss to offset other gains (known as tax-loss harvesting). Look for a link or option like "Select Tax Lots" or "Cost Basis" on the order entry screen. If available, click it to see your acquired shares grouped by date and cost, and choose which specific shares to sell. This feature might not be available on the mobile app but is typically on the full website.
Sub-heading: Select Your Order Type
The order type determines how your trade is executed in the market. Each has different implications for price and execution speed.
Market Order:
Description: A market order instructs Merrill Edge to sell your shares immediately at the best available current market price.
Pros: Generally ensures quick execution.
Cons: You have no control over the exact price you receive. In fast-moving markets, the price can fluctuate between the time you place the order and when it's executed, leading to what's known as "slippage."
When to Use: When you prioritize immediate execution over a specific price, for example, if you need to exit a position quickly.
Limit Order:
Description: A limit order instructs Merrill Edge to sell your shares only at or above a specified price (your "limit price").
Pros: Guarantees you won't sell below your desired price.
Cons: There's no guarantee your order will be executed if the stock's price doesn't reach your limit.
When to Use: When you have a specific target price in mind and are willing to wait for the market to reach it.
Stop Order (Stop Loss Order):
Description: A stop order becomes a market order once the stock price reaches or falls below your "stop price."
Pros: Helps protect against significant losses by automatically triggering a sell if the stock drops to a certain level.
Cons: Once the stop price is triggered, it becomes a market order and is subject to market order risks (slippage). In volatile markets, the execution price might be significantly lower than your stop price.
When to Use: To limit potential losses on a position.
Stop Limit Order:
Description: Similar to a stop order, but once the stop price is triggered, it becomes a limit order at your specified limit price.
Pros: Offers more control over the execution price than a simple stop order, as it won't sell below your limit.
Cons: There's still no guarantee of execution. If the price falls rapidly past your stop and limit price, your order might not be filled.
When to Use: When you want to protect against losses but also want some price protection.
Trailing Stop Order:
Description: A trailing stop order is a dynamic stop loss order that adjusts as the stock price moves in your favor. It's set at a certain percentage or dollar amount below the market price. If the stock price rises, the trailing stop price rises with it. If the stock price falls, the trailing stop price remains fixed, and if it hits the trailing stop, a market order is triggered.
Pros: Allows you to protect profits while still participating in upward movements.
Cons: Similar to a regular stop order, it can still experience slippage in volatile markets.
When to Use: To lock in gains while still allowing for potential further upside.
Sub-heading: Determine Your Time-in-Force
The time-in-force dictates how long your order remains active in the market.
Day Order:
Description: The order is active only for the current trading day. If not executed by market close, it is automatically canceled.
When to Use: For most standard trades where you want to execute within the current day.
Good 'Til Cancelled (GTC):
Description: The order remains active for a longer period (typically 30-60 days on Merrill Edge, verify their specific policy) or until it is executed or you manually cancel it.
When to Use: For limit or stop orders where you are willing to wait for your desired price to be met over a longer timeframe.
Step 4: Review Your Order
Almost there! Take a moment to double-check everything.
Confirmation Screen: Merrill Edge will present you with a review screen summarizing your order details:
Stock Symbol
Action (Sell)
Quantity
Order Type (Market, Limit, Stop, etc.)
Limit Price (if applicable)
Stop Price (if applicable)
Time-in-Force
Estimated Proceeds (before commissions/fees and taxes)
Check Carefully: It is absolutely crucial to review all information on this screen for accuracy. An incorrect order can lead to unintended consequences. Ensure the number of shares is correct, the price is what you intended, and the order type matches your strategy.
Potential Fees: While Merrill Edge offers $0 online commissions for stocks and ETFs, there might be regulatory transaction fees (very small, typically a few cents per $1,000 of principal) or other specific fees depending on the type of security or order. These should be displayed on the review screen.
Step 5: Place Your Order
The moment of truth!
Confirm and Place: If all details are correct, click the "Place Order," "Confirm Trade," or similar button.
Order Confirmation: You will receive a confirmation message indicating that your order has been placed. You'll also likely receive an email confirmation. Keep this confirmation for your records.
Step 6: Monitor Your Order and Account
Your work isn't done just yet. Keep an eye on your trade!
Order Status: Go to the "Orders" or "Trade History" section of your Merrill Edge account to monitor the status of your sell order.
For Market Orders, execution is usually immediate (during market hours).
For Limit or Stop Orders, you'll see if it's "Pending," "Partially Filled," or "Filled."
Settlement: Once your sell order is executed, the transaction needs to "settle." For most stock sales, this is typically T+2, meaning the funds will be available in your account two business days after the trade date.
Accessing Funds: After settlement, the cash proceeds from your sale will be available in your Merrill Edge account. You can then use these funds to buy other investments, transfer them to a linked bank account, or withdraw them.
To transfer funds: Look for options like "Transfer Funds" or "Withdraw Money" within your account. You'll likely have options for electronic transfers (ACH), wire transfers, or even requesting a check. ACH transfers are usually free but can take a few business days. Wire transfers are faster but often incur fees.
Important Considerations When Selling Stock
Market Hours: Stock exchanges have specific trading hours. Generally, the U.S. stock market is open from 9:30 AM to 4:00 PM Eastern Time, Monday through Friday. Orders placed outside these hours will be queued for the next trading day.
Tax Implications: Selling stock can trigger capital gains or losses, which have tax implications.
Capital Gains: If you sell a stock for more than you paid for it, you realize a capital gain. This gain will be taxed.
Short-term capital gains (for assets held one year or less) are typically taxed at your ordinary income tax rate.
Long-term capital gains (for assets held longer than one year) are usually taxed at lower, preferential rates.
Capital Losses: If you sell a stock for less than you paid for it, you realize a capital loss. These losses can be used to offset capital gains and, to a limited extent, ordinary income.
Always consult a tax professional to understand the specific tax implications of your stock sales.
Merrill Edge Fees: While online stock trades are generally commission-free, be aware of potential regulatory fees (very small), margin interest if you're using margin, or other service fees. Always refer to Merrill Edge's official pricing schedule for the most up-to-date information.
Market Volatility: Be mindful of market volatility, especially when using market orders. Rapid price swings can lead to execution at a price different from what you saw just moments before. Limit orders offer more price control in such situations.
Dividends: If you sell a stock before its ex-dividend date, you will not be entitled to the upcoming dividend payment. If you sell on or after the ex-dividend date, you typically will receive the dividend.
10 Related FAQ Questions
How to check my current stock holdings on Merrill Edge?
You can check your current stock holdings by logging into your Merrill Edge account and navigating to the "My Accounts," "Holdings," or "Portfolio" section, where a list of all your investments will be displayed.
How to choose specific tax lots when selling stock on Merrill Edge?
When placing a sell order on the Merrill Edge website (often not available on the mobile app), look for an option like "Select Tax Lots" or "Cost Basis" on the order entry screen. Clicking this will typically allow you to view your acquired shares by purchase date and cost, and choose which specific lots to sell for tax purposes.
How to place a limit order on Merrill Edge?
To place a limit order, select "Limit" as your "Order Type" on the trade screen. Then, enter the specific price at which you are willing to sell your shares (your "limit price"). Your order will only execute if the stock's price reaches or exceeds this specified price.
How to cancel a pending stock sell order on Merrill Edge?
You can cancel a pending stock sell order by going to the "Orders" or "Trade History" section of your Merrill Edge account. Locate the pending order and select the "Cancel" option next to it. Be aware that market orders are usually executed instantly and cannot be canceled once placed.
How to transfer money out of my Merrill Edge account after selling stock?
After your stock sale has settled (typically T+2 business days), the funds will be available in your Merrill Edge cash balance. You can then transfer them to a linked bank account via ACH, initiate a wire transfer, or request a check through the "Transfer Funds" or "Withdraw Money" section of your account.
How to determine the best order type for selling my stock?
The best order type depends on your priorities. Use a market order for immediate execution. Use a limit order if you want to ensure you sell at or above a specific price. Use stop orders or trailing stop orders to help limit potential losses or protect gains. Consider market volatility and your risk tolerance.
How to avoid wash sales when selling stock for a loss on Merrill Edge?
To avoid a wash sale, you must not buy the same or a "substantially identical" security within 30 days before or after selling the security for a loss. If you do, the loss will be disallowed for tax purposes. Always consult a tax professional for specific guidance on wash sales.
How to check the fees associated with selling stock on Merrill Edge?
While Merrill Edge offers $0 online commissions for stocks, there may be small regulatory fees. These fees are typically displayed on the order review screen before you place your trade. You can also refer to the official Merrill Edge pricing schedule on their website for a detailed breakdown of all potential fees.
How to track the settlement of my stock sale on Merrill Edge?
After placing a sell order, you can track its status and settlement date in the "Orders" or "Trade History" section of your Merrill Edge account. Most stock sales settle within two business days (T+2).
How to get a tax document for my stock sales from Merrill Edge?
Merrill Edge will provide you with tax documents, such as Form 1099-B, which reports proceeds from brokerage transactions, including stock sales. These documents are usually available in your account's "Documents" or "Tax Center" section around tax season (early in the calendar year following the tax year of the sale).
