Who is better to invest with Fidelity or Edward Jones?
Edward Jones vs Fidelity Investments: Who Should Manage Your Investments? If you prefer the hands-on approach of personalized wealth management and can afford the higher fees, Edward Jones may be a wise choice for you.
Edward Jones's brand is ranked #200 in the list of Global Top 1000 Brands, as rated by customers of Edward Jones. Fidelity Investments's brand is ranked #162 in the list of Global Top 1000 Brands, as rated by customers of Fidelity Investments.
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 invests and manages your account. Annual Program Fee of 1.35%, with lower tiers and reduced rates for higher asset levels.
In addition to ranking No. 1 overall, Edward Jones ranked No. 1 in professional development and compensation. Edward Jones has been the top performer among employee-channel firms in 13 J.D. Power advisor satisfaction studies, which were completed in 2007, 2008, 2010, 2012-2015, 2017-2022.
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.
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.
Edward Jones lets people work with a human advisor while robo-advisors are computer programs. Edward Jones tends to charge a higher fee than a robo-advisor. Despite that higher cost, some investors prefer the personalized touch and empathy that comes from a human advisor.
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.
Why was Edward Jones Under Investigation? The recent Securities Exchange Commission (SEC) investigation into financial advisory firm Edward Jones centers around overcharging.
Why are Edward Jones CD rates so high?
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.
Is Edward Jones good? While Edward Jones fees are higher than those from many robo-advisors, clients enjoy the benefits of having a dedicated financial advisor working with them on the details of their investments and managing their finances with the bigger picture in mind.
- Fidelity.
- J.P. Morgan Self-Directed Investing.
- Interactive Brokers IBKR Lite.
- Charles Schwab.
- Vanguard.
- E*TRADE.
- SoFi Active Investing.
- Axos Self-Directed Trading.
When I was researching different financial advisory programs, I did look at the success rate. 5 years after starting, 38% of Financial Advisors are still with Edward Jones. The other financial advisory firms had a rate in the low 20's.
Key Takeaways. BlackRock, Vanguard, Fidelity, State Street Global Advisors, and J.P. Morgan Asset Management are the five largest financial advisory firms in the United States, ranked by assets under management (AUM).
- Top financial advisor firms.
- Vanguard.
- Charles Schwab.
- Fidelity Investments.
- Facet.
- J.P. Morgan Private Client Advisor.
- Edward Jones.
- Alternative option: Robo-advisors.
- Charles Schwab - Best for high net worth investors.
- Merrill Edge - Best rewards program.
- Fidelity - Best overall online broker.
- Interactive Brokers - Great overall, best for professionals.
- E*TRADE - Best web-based platform.
| Rank | Company | Score |
|---|---|---|
| 1 | BlackRock | 75 |
| 2 | Charles Schwab | 70 |
| 3 | Fidelity Investments | 69 |
| 4 | UBS | 68 |
How a transfer of assets works. You submit your transfer request to Fidelity. 5–7 minutes Fidelity contacts your current firm, requesting the account assets. After processing the request, your current firm sends the account assets to Fidelity.
On the surface, the figures seem to indicate an impressive comeback for Edward Jones, which had been rapidly losing both profits and advisors in recent years. In 2021, the firm — which operates in both the U.S. and Canada — suffered a net loss in its U.S. advisor headcount for the first time in a decade.
Does Edward Jones have good returns?
Our expectations are for fixed-income returns to average 3% to 4.25%. Therefore, if your portfolio objective is Balanced Growth and Income, for example, you can expect a long-term average return between 4.5% and 6.5%.
Your financial advisor generally receives between 36% and 40% of the compensation Edward Jones receives from asset-based fees, transactional revenue, ongoing 12b-1 fees, trail commissions and revenue from premiums generated by activity in your financial advisor's clients' accounts.
However, distributions before age 59½ may be subject to a 10% early withdrawal penalty, in addition to regular income taxes, unless you qualify for a penalty exception. Distributions of after-tax contributions (non-deductible) aren't subject to taxes or penalties, since you've already paid taxes on those dollars.
For the 11th consecutive year, financial services firm Edward Jones appears on the Fortune 500® list. Edward Jones ranks No. 333, with more than $12.3 billion in net revenue for 2022. To be included in the Fortune 500®, companies are ranked by total revenue for their respective fiscal years.
1 Total commission may vary for trades executed over multiple days and is added to a $4.95 transaction fee per trade. 2 Principal amount calculated by multiplying the number of shares by the stock price. 3 Minimum commission is $50.00. The above equity commission schedule is effective as of March 5, 2021.
