What kind of investment is Edward Jones?
Stocks, bonds and mutual funds
Edward Jones is a dually registered broker-dealer and investment adviser.
The Edward Jones Select Account is a transactional (brokerage) account. You pay a commission when you buy and sell certain investments. Some investments, such as mutual funds, may also have internal expenses in addition to a sales charge.
Edward Jones financial advisors offer clear, thoughtful guidance tailored to help you achieve the future you want.
Edward Jones fees are tiered, so they decrease as your account grows in value. Still, a 1.35% fee is high, even compared to other financial advisory firms. These fees are especially high considering most people can create similar portfolios with a little bit of research and a desire to learn more about investing.
1 in national survey of financial advisors.
The reason for the high rates is that Edward Jones is a broker that buys CDs in bulk from other banks and resells them at competitive rates. Because Edward Jones offers brokered CDs, there are a few elements that work differently than CDs from traditional banks.
Verdict — Is Edward Jones worth it? For the average investor, Edward Jones is probably not the best choice. You could spend more time learning about making investment decisions by yourself and choose a platform with lower fees.
Edward Jones offers solutions that provide Federal Deposit Insurance Corporation (FDIC) protection for money you're saving or need to spend in the near future.
| Edward Jones Details | |
|---|---|
| Trade Transaction Fee | $4.95 |
| Trade Commissions | Up to 2.50% |
| Management Fee | 0.50% to 1.35% |
| Account Type | Roth, Traditional, SEP, SIMPLE, 529, Taxable |
How do Edward Jones agents make money?
Your financial advisor generally receives between 36% and 40% of the revenue Edward Jones receives from asset- based fees, transactional revenue, ongoing 12b-1 fees, trail commissions, and revenue from premiums generated by activity in your accounts.
Advisors at Edward Jones are not bound to the fiduciary standard at the brokerage level. The firm's advisors working with institutional plans are, though. Edward Jones advisors who have earned the right to use the CFP or CFA marks are required to act as fiduciaries.
Edward Jones advisors are generally compensated in a variety of ways. Advisors receive commissions when you buy and sell a security and they are compensated through a product mark-up, when you buy a security like a bond. Investors using either service will also pay the expense ratios of any mutual funds they invest in.
I recently listened to a podcast about Edward Jones. Should I invest with Edward Jones? Short answer: NO, we suggest you invest with a fee-only fiduciary Advisor who charges less than 1% on the first $1M. (please note, this information was developed from SEC ADV frim brochure information filed in 2023)
All periods show annualized returns. All data is for the period ending 12/31/2022. Past performance is not a guarantee of future results. Since inception in January 1993, the Edward Jones Stock Focus List has provided an average annual total return of 9.6% compared to 9.5% for the S&P 500.
The initial investment minimum to open an account is $5,000.
Edward Jones does not serve as a fiduciary except for at the Plan level of retirement plans. This means that their advisors aren't legally required to put their clients' needs ahead of their own. Advisors at Edward Jones are not bound to the fiduciary standard at the brokerage level.
Edward Jones centers its services around personalized financial advice, so its fees may be a little higher than Fidelity Investments' fees. Fees change depending on which service you choose and how much you invest.
1. Deposit Insurance: General The Deposit Accounts (including principal and accrued interest) Page 4 Page 4 of 5 LGL-13172-A REV. MAR 2021 © 2021 EDWARD D. JONES & CO., L.P. ALL RIGHTS RESERVED. edwardjones.com are insured by the FDIC up to $250,000 for all deposits held in the same insurable capacity at any one Bank.
The biggest disadvantage of investing in CDs is that, unlike a traditional savings account, CDs aren't flexible. Once you decide on the term of the CD, whether it's six months or 18 months, it can't be changed after the account is funded.
Who has the highest 12 month CD rate?
- TotalDirectBank – 5.35% APY.
- Elements Financial – 5.35% APY.
- First Internet Bank – 5.31% APY.
- Northpointe Bank – 5.30% APY.
- Quontic Bank – 5.30% APY.
- Colorado Federal Savings Bank – 5.30% APY.
- Home Savings Bank – 5.30% APY.
- My eBanc – 5.30% APY.
- Credit One Bank – 5.25% APY for a one-year CD, $100,000 minimum deposit for APY.
- Suncoast Credit Union – 5.25% APY for a one-year CD, $100,000 minimum deposit for APY.
- Navy Federal Credit Union – 5.10% APY for a one-year CD, $100,000 minimum deposit for APY.
If Edward Jones experiences financial difficulties, the Securities Investor Protection Corporation (SIPC) protects securities and cash in your account.
Key Takeaways. If a brokerage fails, another financial firm may agree to buy the firm's assets and accounts will be transferred to the new custodian with little interruption. The government also provides insurance, known as SIPC coverage, on up to $500,000 of securities or $250,000 of cash held at a brokerage firm.
| Term | APY | Account Name |
|---|---|---|
| 1 Year | 5.40% APY | Alliant 1 Year CD |
| 18 Month | 5.20% APY | Credit Human 18 Month Share Certificate |
| 2 Year | 5.00% APY | Pelican State Credit Union 2 Year Share Certificate |
| 3 Year | 5.00% APY | DollarSavingsDirect 3 Year CD |
