Fees at Edward Jones

Highlights:

• Edward Jones is a full-service investment firm with a variety of fees and minimums.

• Brokerage and investment-advisory accounts at Edward Jones have different fee schedules.

• Edward Jones does not offer discount brokerage accounts, so clients should have their wallets ready.

• Large accounts are eligible for discounts at Edward Jones, at least in some cases.

Overview of Fees at Edward Jones

To help its clients manage their financial lives, Edward Jones offers insurance, annuities, financial planning, and securities. Because there are so many products and accounts at the firm, the company’s fee schedules can vary quite a bit. The following article is a collection of some, but not all, of the firm’s products and services and their prices and minimums.

Edward Jones Advisory Fees

The place where many Edward Jones clients begin is with one of the firm’s investment-advisory services, so that’s where we’ll start. Money can be deposited into a securities account, and depending on the program, either the client makes investment decisions with guidance from Edward Jones or the firm manages the account on a discretionary basis. For these services, Edward Jones charges annual fees that are billed as a percentage of assets in the account.

There are multiple advisory programs from which clients can choose. Here are the fee schedules for the company’s Guided Solutions® and the Advisory Solutions® programs:




As can be seen, large accounts get discounts, which will help to offset the effective cost of investing with Edward Jones. Guided Solutions® Fund accounts can be opened with less than $5,000, although accounts below that level have limits on the number and type of investments that may be purchased or held. Guided Solutions® Flex generally requires $25,000. Advisory Solutions® Fund Models require $25,000.

For some investment strategies, there can be additional costs. In Advisory Solutions® UMA Models, for example, separate account manager fees can range from 0.00% to 0.40% per year. These fees are in addition to Edward Jones’ program fee and platform fee, so clients should review the specific program brochure and fee schedule before opening an advisory account.

The good news is that some advisory fees may be discounted or reduced at the sole discretion of Edward Jones.

Edward Jones Brokerage Accounts Fees

The Select Account is Edward Jones’ brokerage account. This account avoids the percent-based advisory fee we saw above with the advisory programs. But it does come with some high commissions and transaction costs. Here are some examples:

Stocks: Up to 2.5% of principal or a $50 minimum commission, plus a $4.95 transaction fee for select trades

Bonds: A commission or markup of up to 2% of the purchase amount, or a markdown of up to 0.75% of the sale amount, plus a possible $4.95 transaction fee for select trades

Mutual funds: Equity funds are generally 3.75% to 5.75% per purchase; fixed-income funds are generally 2.25% to 4.75% per purchase

Unit Investment Trusts (UITs): Sales charge between 1.95% and 3.5%

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Edward Jones Margin Rates

Brokerage accounts at Edward Jones can be set up for margin trading, while advisory accounts generally can use margin only to borrow money. Interest rates for both account programs are on a tiered schedule and can include household assets for the stepped pricing.




The margin rates are based on the prime rate published in The Wall Street Journal. Because this rate changes periodically, the above rates are subject to change as well.

Not all accounts at Edward Jones will be able to use margin due to industry regulations.

529 Plans

Edward Jones offers 529 plans with mutual funds as investment options. These accounts can be subject to sales charges and other mutual-fund expenses, similar to the costs described above in the brokerage category for mutual-fund trades.

Individual Retirement Accounts (IRAs)

An IRA at Edward Jones set up as a brokerage account is subject to an annual fee of $75. If it’s a business IRA (SEP or SIMPLE), the fee is reduced to $40. In both cases, brokerage clients with household assets above $250,000 don’t have to pay the fee. A brokerage IRA also has to pay 2% for every DRIP (Dividend Reinvestment Plan) transaction into stock. Then there is a $3 monthly fee for each money market mutual fund if the average monthly balance falls below $1,500 or $2,500, depending on the share class. These IRA fees don’t apply to Edward Jones investment-advisory accounts.

Brokerage IRAs can also be charged 2% of each systematic purchase of stocks, with a $5 minimum.

Annuities and Insurance

Edward Jones partners with insurance companies to offer annuities and insurance to its customers. Examples of insurance policies include disability, life, and long-term care. Edward Jones itself does not underwrite these policies; instead, it works with underwriters to offer contracts for sale to its clients. The insurance companies themselves are responsible for creating the fee schedules for these contracts; the prices will be disclosed by Edward Jones at the point of sale.

Financial Planning

Besides investing and insurance, Edward Jones offers financial planning. Its Ongoing Financial Planning Service has a maximum fee of $3,600 per year. Edward Jones also says it does not currently charge a separate fee for its Point in Time Financial Planning Service, although it reserves the right to do so in the future.

Cash Management

Edward Jones has some pretty nice cash-management tools that brokerage and advisory customers can take advantage of. The Flex Funds® account has no annual fee. A debit card is free for personal accounts, although business cash-management solutions cost $35 per year.

Edward Jones does not reimburse ATM fees on all cash accounts. ATM owners outside the PNC Bank network may charge surcharge fees, and certain accounts may qualify for rebates.

Trustee Services

One more service Edward Jones customers can use is corporate trustee service. Edward Jones Trust Company can function as trustee, co-trustee, managing agent, or managed IRA provider. Its annual fee is based on a tiered percentage scale, and trust accounts also include a $2,000 annual base charge. The minimum account size is generally $500,000 in liquid marketable securities, and the minimum annual fee is $6,000 for the first account and $3,000 for each additional account.

Edward Jones Customer Reviews

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Edward Jones Fees Judgment

Edward Jones is a little pricey for brokerage accounts, although large managed accounts can qualify for lower percentage-based pricing in some programs.

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