Edward Jones, the St. Louis, Missouri-based full-service brokerage firm, is one of the most recognizable names in its industry. Providing a wide range of investment advisory services, brokerage services and other products, Edward Jones is a one-stop shop for those looking for personalized guidance and face-to-face interaction. While their fees may seem steep when compared to several discount brokers or robo-bankers on the market today, some may find the wide range of services and personalized approach of their financial advisors worth the money.
Edward Jones Background
Founded in 1922 in downtown St. Louis, Edward Jones has grown from a single office into a nationwide, full-service brokerage firm with branches all across the country. The firm works with just shy of 7 million clients, and it operates more offices than any other investment firm in the U.S. Founded by Edward D. Jones himself, the firm has seen five different managing partners, including the current managing partner, Jim Weddle.
Edward Jones Client Types and Minimum Account Sizes
Edward Jones works with individuals as well as business owners and their employees. It also provides business services to individuals who are self-employed. The firm manages assets for individuals with and without high net worth, as well as pension and profit sharing plans, charitable organizations, corporations and other partnerships, investment clubs and limited liability companies.
The minimum account size will depend on the type of account you open. For instance, the Guided Solutions Flex Account has a minimum of $25,000, but the Guided Solution Fund Account only has a minimum of $5,000.
Edward Jones Account Options
As a full-service firm, Edward Jones has a wide variety of options when it comes to accounts. You can have a regular taxable brokerage account, traditional IRA, Roth IRA, 401(k), custodial account, college savings account and more.
If you’re interested in wealth management services, Edward Jones has four main options:
- Guided Solutions: For clients who prefer to be more hands-on with their investing, this option allows you to manage investments with the help of an advisor’s guidance.
- Advisory Solutions: This option leaves daily decision-making to the advisor and is better for those who’d rather not deal with the details.
- Client Consultation Group: With this option, a group of specialized Edward Jones professionals will assist your advisor in developing your wealth management plan.
- Estate Planning and Trust Services: The trust services program is used by clients to develop and manage a lasting legacy and also assist with more present financial needs.
Edward Jones Investment Philosophy
Edward Jones selects stocks, bonds, CDs, mutual funds, exchange-traded funds (ETFs) and Unit Investment Trusts (UITs) for its clients based on a buy-and-hold philosophy. In other words, the firm prioritizes reliable, long-term growth over short-term plays.
Fees Under Edward Jones
The fees you pay will depend on the type of product you purchase. When using the investment advisory services like the Guided Solutions and Advisory Solutions programs, your fee rate will be based on the value of the assets in your account. The higher the asset value, the lower the fee.
|Value of Assets in Account||Annual Fee Rate|
In addition to this program fee, clients may also pay a portfolio strategy fee, with fees based on the rates below.
|Value of Assets in Account||Annual Fee Rate|
The following table breaks down advisory fees at Edward Jones. Please note that these are merely estimates and actual fees will vary. These estimates only take into account the base advisory fee.
|Estimated Advisory Fees at Edward Jones*|
|Your Assets||Fee Amounts|
Awards and Recognitions
Edward Jones received the second-highest score in the J.D. Power 2018 Full Service Investor Satisfaction Study. The firm received first place in the same study in 2015. In 2017, the firm received an award from WealthManagement.com for corporate social responsibility.
As mentioned previously, Edward Jones receives revenue sharing payments from virtually every mutual fund, 529 program and annuity that it purchases on behalf of their clients.
What to Watch Out for
Edward Jones has mutiple disclosures reported on it ADV form. In 2004, Edward Jones paid $75 million to the Securities and Exchange Commission (SEC) as part of a settlement after it was alleged that the firm failed to disclose revenue sharing payments it received from a group of mutual fund families.
If you have a brokerage account with Edward Jones and your portfolio includes mutual funds, Edward Jones likely is receiving revenue sharing for those products and therefore has a conflict of interest. The same is true if you’re in a 529 plan or you’ve purchased an annuity. Edward Jones does not receive revenue sharing payments for assets within investment advisory programs like Guided Solutions and Advisory Solutions.
Opening an Account with Edward Jones
To open an account, you can visit the Edward Jones website or call (314) 515-2000 to find the advisor closest to you and schedule an appointment.
At the first appointment, your advisor will ask you a series of questions to determine what’s most important to you in your investing. From there, your advisor will develop a tailored strategy that takes into account your risk tolerance and your investing goals.
The firm has multiple branch locations in the U.S. and Canada. Edward Jones has its headquarters in Des Peres, Missouri, just outside of St. Louis.
All information is accurate as of the writing of this article.
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