Edward Jones, a full-service brokerage firm established in St. Louis, Missouri, is one of the most well-known brands in the industry. Edward Jones is a one-stop-shop for customers searching for individualized counsel and face-to-face connection, offering a comprehensive variety of investment advisory services, brokerage services, and other goods.
While their prices may seem high compared to other discount brokers or robo-bankers on the market today, some clients may find their financial advisers’ wide variety of services and customized approaches well worth the money.
This review will go over Edward Jones to see if it really is the best brokerage firm out there.
You’ll learn whether a brokerage firm is the right thing for you.
And at the end, you’ll find answers to some of the most frequently asked questions regarding Edward Jones and brokerage firm in general.
But most importantly, you’ll see the exact system many others have used to build their own internet marketing business to over $40,000 a month in mostly passive income.
This system made them swear off brokerage firm for good, because it uses some of the same skills but in a much more powerful and profitable way!
This Edward Jones review has been thoroughly researched with information and testimonials that are available online to anyone in the public. Any conclusions drawn by myself are opinions.
Table of Contents
Pros: What I Liked
- Provides one on one investment advice.
- Financial planning services available in a variety.
- Serves individuals, pension funds, and businesses.
Cons: What I Didn't Like
- Expensive fees
- No active trading
- Prevents certain investments
What Is Edward Jones?
Edward Jones is a full-service brokerage firm with offices in the United States and Canada. Founded in St. Louis in 1922, it earned a reputation as a portfolio manager that cared passionately about its customers during the twentieth century.
The company built offices throughout the United States and expanded into Canada; currently, over 15,000 Edward Jones branches and almost 19,000 trained financial advisers are employed. If it appears to be an unusual ratio, a key component of its mission is to serve clients where they reside while maintaining the same high level of service rather than clustering in major cities.
The founder, Edward Jones, was a renowned figure in the personal finance industry, which is one of the reasons why the business is still prospering after a century of trade. Brokerage advisers now make money through commission fees and revenue sharing.
In an era when customer service is increasingly automated, and internet brokers frequently transfer their clients to a “Knowledge Base” FAQ page, Edward Jones’ hands-on, devoted customer service is valued by many of its loyal customers.
The business manages around $1.7 trillion in assets under management (AUM) and services approximately seven million clients. It focuses on long-term investment opportunities.
How Does Edward Jones Work?
Edward Jones advisors were historically different because they were available even in tiny towns and villages across the United States and Canada. This is still the case. The firm has offices all around the world.
However, in keeping with the digital era, it has broadened its services to assist investors in finding a reliable financial advisor online. Overall, Edward Jones has a strong system to connect you with an adviser. First, you’re quickly matched with a live adviser who will chat with you over the phone for free.
When you initially join Edward Jones, you complete a survey to help match you with an adviser and assess your investment goals. The quiz questions are well-designed, and multiple-choice questions allow you to submit additional text if necessary. The questionnaire goes out of its way to help you prioritize personal matters. It is in line with the company’s objective of providing tailored financial advice to its clients.
Finally, even though Edward Jones is a 100-year-old corporation, it features a clutter-free, user-friendly website. The service also works well on the company’s mobile app, available for iOS and Android.
Financial Services From Edward Jones
Edward Jones provides a variety of investment products. Edward Jones financial advisor assists consumers who want to invest in various financial assets such as stocks, bonds, CDs, and other fixed-income assets. Mutual funds, exchange-traded funds (ETFs), and unit investment trusts can help you diversify your portfolio.
One of EJ’s strengths is that its financial advisors are well-regarded and can assist you in identifying the correct mix of assets to meet your investment objectives. Forbes named certain investment advisers to its 2021 Best-in-State Wealth Advisors list.
Edward Jones offers a variety of accounts, ranging from flex- to fund-guided solutions accounts. For a minimum commitment of $25,000, the flex account provides a hands-on approach, account notifications, and various options.
If you start a fund account with a minimum deposit of $5,000, you will be able to work with your adviser to select from a wide variety of eligible mutual funds and ETFs. Mutual funds and exchange-traded funds (ETFs) contain diverse investments, allowing you to diversify your portfolio. The program fee begins at 1.35 percent and is tier-based, with reduced charges associated with more invested assets.
The firm provides retirement accounts, brokerage accounts, 529 programs, and cash and credit alternatives. With 401(k) rollovers when you move jobs or retire, you may pick from various investment options for your retirement assets.
Edward Jones Pricing & Fees
Full-service brokers charge far more than self-directed internet stock brokers. This is the case with Edward Jones, which has a lot of costs.
These are determined by the sort of account you select. Investments in a Select Account are subject to commissions. The broker charges a Program Fee for all other account types, which is a percentage of the account’s value.
It is important to note that your fees in a Guided Solutions account are fee-based, not fee-only. According to Edward Jones, this yearly charge includes internal investing expenses.
The management charge (sometimes known as the “program fee”) begins at 1.35 percent for a $250,000 investment. It gradually decreases, eventually reaching a rate of 0.50 percent for assets worth more than $10 million.
- 1.35% on the first $250,000
- 1.30% for amounts ranging from $250,000 to $500,000
- 1.25% for amounts ranging from $500,000 to $1 million; 1.00% for amounts ranging from $1 million to $2.5 million.
- 0.80% for amounts ranging from $2.5 million to $5 million
- 0.60% for the amounts ranging from $5 million to $10 million
- 0.50% for the amounts ranging from $10 million to $20 million
Because the method is tiered, your first $250,000 in assets will always be charged a 1.35 percent yearly cost. In actual terms, this translates to yearly costs of:
- $3,375 on a $250,000 investment
- $12,875 for every million dollars invested
- $77,875 for every ten million dollars invested
- $127,875 for a total investment of $20 million
If you have $20 million in assets, you’re not suffering to pay your obligations, but an annual charge of about $128,000 is still high. Investors with fewer assets feel the pinch the most acutely; $250,000 is a sizable portfolio for many middle-income households. And getting charged $3,375 each year for your efforts to save money isn’t ideal.
Of course, the argument goes that the Edward Jones costs are more than offset by a formidable long-term return on investment (ROI), which it claims is only possible when working with the Edward Jones team. Unfortunately, we must evaluate additional expenses before determining if this claim is valid.
Fees For Portfolio Strategies
Another tier cost for all broker-provided advising products is the portfolio strategy fee. While these fees are only collected at the top of the broker’s services and do not apply to lower-value customers, they eat up a significant portfolio.
The Advisor Solutions Fund Model starts at 0.09 percent, whereas the Advisory Solutions UMA (universal market access) Model starts at 0.19 percent. This reduces the rate through the tiers to 0.05 percent for the highest AUM band.
Financial planning firms commonly charge extra costs for premium items. However, given the amount you’re currently paying in management fees, the strategy charge seems excessive, especially at a starting rate of 0.19 percent for the UMA Model.
When Select Account clients purchase or sell assets, they are charged trade commissions. The fee varies according to the type of investment purchased.
You have the last say on investments with a Select Account. If the tiered program fee structure appears excessive for having someone else make investment decisions for you, the Select Account may be a better option.
In general, Edward Jones’ fee structure is quite convoluted and enigmatic.
Edward Jones Features
Financial Advisors in More Than 15,000 Branches
The geographical structure of Edward Jones is essential to how it operates. Unless you’re purposefully avoiding society, there’s a corporate headquarters nearby.
You may phone, email, or make an appointment in the office. The essence is that having someone to talk to about your investment portfolio is advantageous.
Personalized Service From a Qualified Financial Advisor
It’s not simply the availability of client service that distinguishes Edward Jones from many other prominent cheap online brokerages. It is the quality of advice you get and how well it is suited to your specific interests and requirements.
Your money manager is aware of your portfolio and objectives. For example, if you’re concerned about the environment and don’t want to invest in oil and gas pipelines, your adviser may make sure you don’t.
Wealth Management Services
Let’s take a look at Edward Jones’ brokerage account alternatives. It offers the following brokerage accounts:
- IRA (Traditional IRA) (individual retirement account)
- Roth IRA
- SEP IRA (simplified employee pension IRA)
- SIMPLE IRA (Simplified IRA) (savings incentive match plan for employees IRA)
- 529 savings plan (qualified college tuition plan)
- A taxable account
You pick whether you want to handle investment choices yourself or delegate them to your adviser, regardless of the kind of account you choose. The numerous portfolio management options are shown below.
There is no minimum investment requirement with this account. It provides access to a wide range of markets, including:
- Mutual funds
It would be best if you made all your choices. You have access to your advisor’s aid but not the complete research service accessible with a guided account.
A Guided Solutions Fund Account gives you decision-making power, but your adviser will do extensive research on your behalf and provide personalized advice. These accounts have asset-based fees, which must be included in your investing strategy.
A Guided Solutions Flex Account gives you access to more marketplaces than a Fund Account. However, the minimum investment is somewhat hefty at $25,000. Once again, you have the last word on investing decisions. The advantage of this sort of account over a Select Account is that you have access to the same markets as a Select Account, but experts guide your wealth management.
These are the least hands-on investing options. If you use advisory solutions, your adviser will also function as the executive decision-maker for your investments. While this may seem to put you in danger of investing in an area where you have a conflict of interest, your adviser will note any possibilities you’d prefer to avoid and respect your decision.
Advisory Solutions accounts are maybe the greatest retirement account financial planning alternative. However, a minimum investment of $25,000 is required for the Fund Model, and for the UMA Model, a minimum investment of $500,000 is needed.
Is Your Money Safe With Edward Jones?
When you invest with Edward Jones, the question isn’t so much “Is my money safe?” as it is “Is my money safe?” as well as “Will the ROI be worth it?” With this broker, your money is secure.
Edward Jones is regulated by the Financial Industry Regulatory Authority (FINRA) and the Securities and Exchange Commission, and its solid reputation is built over a century of trading (SEC). Its advisers are well-trained experts the organization has properly verified before they are appointed.
However, keep in mind that Edward Jones does not act as a fiduciary, except for retirement plans at the Plan level. This implies that their advisers are not compelled by law to prioritize their customers’ demands before their own. In addition, Edward Jones’ pay statement acknowledges that certain of its adviser incentives may result in conflicts of interest.
Who Should Use Edward Jones?
Hefty-net-worth investors are more likely to be able to pay Edward Jones’ high fees and may prefer the in-person assistance that its staff can provide.
Should ordinary investors, however, utilize Edward Jones? This may or may not be dependent on your degree of skill. However, suppose you understand how investments operate and don’t need a lot of guidance. In that case, you may save a lot of money on advising fees by using a commission-free stockbroker or a low-cost robo-advisor instead.
Who Is Edward Jones Not Suited For?
The common investor seeking to open a regular taxable brokerage account or a college savings account will often discover better value elsewhere. The costs don’t outweigh the rewards unless you’re in it for the long haul. When it comes to consumer comments for Edward Jones, certain sites tend to be unfavorable.
You may argue that the time it takes to learn how to invest wisely is much less expensive than the ongoing fees you pay to this broker for putting up an advising plan or investing in a mutual fund. While you will have access to high-quality guidance, you will be charged significant fees as long as your account is active. It is worthwhile to put in the effort to learn how to handle your own money.
Is Edward Jones A Scam?
So, is Edward Jones a scam? Not technically.
It is entirely possible to build a profitable, successful brokerage firm… But there are better ways to build a business other than this.
Because unlike Edward Jones, it actually provides real proof of real success from real people as recently as a few days ago.
Are There Alternatives To Edward Jones?
Yes, there are plenty of other business models to choose from if you want to pursue this making money online. Here are just a few:
What Is Our Top Recommendation For Making Money In 2022?
Our review team has come across a program in the real estate industry that is next level!
Although it’s not real estate in the traditional sense, it’s all digital.
Where Edward Jones falls short is in profitability.
You can’t realistically expect to be able to make any REAL passive income when you’re just going over mindset. There’s no action there.
But what if you leverage it?
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Sound too good to be true? Of course it does! But it isn’t…in fact, business owners wish they had this skill!
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How do you get paid and how much?
Simple, after you forward the jobs off to a business owner and he makes some money off of them, you simply ask to make the deal beneficial for each other.
A fair price to charge per lead, depending on the industry is 10-20%…let’s just use the tree service industry for example and go by worst case scenario.
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See why they call it digital real estate now? That’s a rent payment.
The great thing is how easy it is to scale. You don’t have to answer the phone…all you have to do is get the phone to ring.
Remember Edward Jones and all the small profit margins?
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The training program takes making money online to a whole other level. The owner of the program walks you through how to build and rank a site hand in hand, with the occasional voice over when he is sharing his screen.
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Once the training program is completed you will also have access to a Facebook group where you can ask questions and be in a community with others on the same journey as you.
Unlike Edward Jones, where you have to keep trading your time for money over and over…. You can finally get on the financially free side of life. A business will always want more leads and another job. In fact it doesn’t even matter that the job isn’t coming from their website name…they see it as it is…expanding digital real estate.
Unlike Edward Jones, more people have been able to become financially free as well.
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Now, I know you probably have tons of questions… So, check this out to learn more.