how much does edward jones charge? Brokerage fee structure, Select account fees, wealth management and trading cost.

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 life 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 most Edward Jones clients begin is with the firm’s investment-advisory service, so that’s where we’ll start. Money will be deposited into a securities account, and the customer’s financial advisor will decide how to invest the money based on a thorough financial plan. For this comprehensive service, Edward Jones charges an annual fee that is billed as a percent 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. And it doesn’t take $250,000 to get into either program. Guided Solutions requires just $5,000, while the Advisory Solutions setup requires $25,000.

For some investment strategies, there can be additional costs. These surcharges can range up to 0.40% per annum, which brings the absolute maximum management fee to 1.75% per year. And any advisory account custodied outside of Edward Jones can be assessed commissions on trades, further increasing the cost of maintaining an advisory account with the firm.

The good news is that all of the numbers are negotiable; the financial advisor reserves the right to discount the listed fees.

Edward Jones Brokerage Accounts Fees

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

Stocks: Up to 2.5% of principal (plus $4.95 per transaction)

Bonds: A markup/markdown up to 2% of principal (plus $4.95 per trade)

Mutual funds: Equity funds are 3.75% to 5.75% per purchase; Bond funds are 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 (advisory accounts can only use margin 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 are subject to the same pricing noted 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. Then there is a $3 monthly fee for each money market mutual fund (avoidable with a position balance of $1,500 or $2,500, depending on the share class). These IRA fees don’t apply to managed IRAs.

Advisory and brokerage IRAs both have to pay 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. This useful service has a maximum fee of $3,600. Like so many of the other fees we have seen, it is negotiable all the way to zero. Presumably, the largest accounts will get the best deals.

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 accounts must pay $35 per year.

Edward Jones does not reimburse ATM fees on all cash accounts, which is a salient policy. Some accounts can get up to five refunds per month.

Trustee Services

One more service Edward Jones customers can score: corporate trustee. Edward Jones will function as a trustee on a trust account. The firm’s annual fee for this service is based on a percentage scale and ranges from 1.50% down to 0.50% (at $5 million and above). There is a minimum annual fee of $6,000 for the first trust account and $3,000 for each additional trust 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 score some good deals.

Find a Financial Advisor

If you are looking for a professional financial advisor in your area, you can find top Financial Advisors on the Wiser Advisor website.

Visit Wiser Advisor

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