Fees at Edward Jones
Highlights:
• Edward Jones is a full-service investment firm with various fees and minimum requirements.
• Brokerage and investment-advisory accounts have separate fee schedules.
• Edward Jones does not offer discount brokerage accounts, so clients should prepare for higher costs.
• Discounts are available for larger accounts in some cases.
Overview of Fees at Edward Jones
Edward Jones provides life insurance, annuities, financial planning, and securities to help clients manage their finances. Given the wide range of products and accounts, the company’s fees can vary significantly. This article outlines the costs and minimums for some of Edward Jones’ offerings.
Edward Jones Advisory Fees
Most Edward Jones clients start with the firm’s investment-advisory service, so we’ll begin there. Funds are deposited into a securities account, and a financial advisor determines how to invest based on a comprehensive financial plan. Edward Jones charges an annual fee for this service, calculated as a percentage of assets in the account.
The firm offers multiple advisory programs. Below are the fee schedules for Guided Solutions® and Advisory Solutions® programs:
| Total Assets | Annual Fee |
|---|
| First $250,000 | 1.35% |
| Next $250,000 | 1.30% |
| Next $500,000 | 1.20% |
| Next $1,500,000 | 1.00% |
| Next $2,500,000 | 0.80% |
| Next $5,000,000 | 0.60% |
| Over $10,000,000 | 0.50% |
Larger accounts receive discounts, reducing the effective cost of investing with Edward Jones. The minimum investment for Guided Solutions is $5,000, while Advisory Solutions requires $25,000.
Certain investment strategies may incur additional charges of up to 0.40% annually, bringing the maximum management fee to 1.75% per year. Advisory accounts held outside Edward Jones may also incur trade commissions, increasing the overall cost.
Fortunately, all fees are negotiable, as financial advisors can offer discounts.
Edward Jones Brokerage Accounts Fees
The Select Account is Edward Jones’ brokerage account option. Unlike the advisory program, it does not charge a percentage-based fee. However, it does involve high commissions. Examples include:
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, while advisory accounts can only use margin to borrow funds. Interest rates for both types of accounts follow a tiered structure and may consider household assets for discounted pricing.
|
Debit Balance
|
Margin Interest Rates
|
|
$0 to $99,999.99
|
9.5%
|
|
$100,000.00 – $249,999.99
|
9.25%
|
|
$250,000.00 – $499,999.99
|
8.75%
|
|
$500,000.00 – $999,999.99
|
9.25%
|
|
$50,000 - $99,999
|
7%
|
|
$1 million – $2,499,999.99
|
6.75%
|
|
$2.5 million – $4,999,999.99
|
6.75%
|
|
$5 million – $9,999,999.99
|
6.5%
|
|
$10 million and over
|
6.25%
|
Margin rates are tied to the prime rate published in *The Wall Street Journal*, so they may change periodically as the prime rate fluctuates.
Some accounts at Edward Jones may not qualify for margin use due to industry regulations.
529 Plans
Edward Jones offers 529 plans with mutual funds as investment options. These plans are subject to the same fees listed for mutual fund trades in the brokerage category.
Individual Retirement Accounts (IRAs)
A brokerage IRA at Edward Jones has an annual fee of $75. For business IRAs like SEP or SIMPLE accounts, the fee is reduced to $40. Clients with household assets exceeding $250,000 are exempt from these fees. Additionally, a brokerage IRA pays a 2% fee on each DRIP (Dividend Reinvestment Plan) transaction. There’s also a $3 monthly fee for each money market mutual fund unless the position balance is $1,500 or $2,500, depending on the share class. These fees don’t apply to managed IRAs.
Both advisory and brokerage IRAs must pay 2% on each systematic stock purchase, with a $5 minimum.
Annuities and Insurance
Edward Jones collaborates with insurance providers to offer annuities and various types of insurance, such as disability, life, and long-term care policies. While Edward Jones doesn’t underwrite these policies, it partners with insurance companies to make them available to clients. Fee schedules for these contracts are determined by the insurance providers and disclosed by Edward Jones at the time of purchase.
Financial Planning
In addition to investment and insurance services, Edward Jones offers financial planning. This service has a maximum fee of $3,600, but the fee is negotiable, potentially down to zero. Larger accounts are likely to receive better discounts.
Cash Management
Edward Jones provides useful cash-management tools for brokerage and advisory accounts. The Flex Funds® account has no annual fee. Personal accounts can get a free debit card, but business accounts are charged $35 per year.
Edward Jones does not automatically reimburse all ATM fees. However, some accounts may qualify for up to five ATM fee refunds per month.
Trustee Services
Edward Jones also offers corporate trustee services. The firm charges an annual fee based on a percentage scale, ranging from 1.50% down to 0.50% for accounts of $5 million or more. The minimum annual fee is $6,000 for the first trust account and $3,000 for additional trust accounts.
Edward Jones Customer Reviews
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Edward Jones Fees Judgment
Edward Jones can be expensive for brokerage accounts, but larger managed accounts may benefit from better pricing and additional services.
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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
Updated on 1/1/2025.
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