Edward Jones Advisor Review

Pros and Cons of Edward Jones

Types of Clients Edward Jones Serves

Edward Jones offers three advisor products, each geared toward different types of investors. Unlike some other firms, its minimum investment requirements create a much lower barrier to entry. However, there are also services for wealthier individuals. Below is a breakdown of each product’s asset requirements:

Account Type	Minimum Investment
Select Account	No account minimum.
Guided Solutions	$5,000 for fund accounts, $25,000 for flex accounts, and $50,000 for flex accounts that invest in bonds and CDs.
Advisory Solutions	$25,000 for fund models, $300,000 for Unified Management Account (UMA) models.

With its lower minimum investment requirements, Edward Jones offers something for everybody. Its advisors serve affluent individuals or those who are just getting started. This, coupled with their wide-reaching number of branches, makes the company a much more accessible option than other firms.

Financial Advisor Services Edward Jones Offers

Edward Jones provides three main product tiers. Each comes with different investment options, features, and pricing structures (which we’ll touch on in the next section). For instance, the Select Account model requires you to pick your own investments, whereas the other two offer a more guided approach in which the advisor works with you to build and grow your portfolio. Below is a detailed breakdown of what each tier offers you:

• Edward Jones Select Account. This tier has no account minimum and provides you with:
  • A financial advisor who will guide you toward certain investments and teach you how to structure your portfolio.
  • Access to flexible investment options, such as stocks, bonds, certificates of deposit (CDs), mutual funds, ETFs, and annuities.
  • Consultations to review your account and monitor progress.
  • Commission-based fee structure (as a consequence of no account minimum)
  • More independence in terms of the investments you’d like to select.
• Edward Jones Guided Solutions. Depending on the suite of investment options you choose (which determines your initial investment requirement), this gives you access to:
  • A finance expert who will work with you to build your portfolio and pick smart investments.
  • Robo-advisor tools that automatically monitor and rebalance your portfolio as needed.
  • Several investment options, which allow you to properly diversify your portfolio, such as stocks, bonds, mutual funds, ETFs, and CDs.
  • A fee-based structure, where you pay a percentage of your assets under management (AUM).
• Edward Jones Advisory Solutions. This wealth management tier gives you a more hands-off approach, as well as:
  • An advisor and a team of analysts to help build your portfolio and manage your assets.
  • The choice between two types of accounts. Fund Models allow you access to up to 90 different research models containing a range of mutual funds and ETFs. Unified Management Account (UMA) Models let you own separately managed allocations (SMAs), or professionally run stocks and bonds.
  • A fee-based structure, where you pay a percentage of your AUM.

Types of Advisors

Edward Jones is both a broker-dealer and registered investment advisor (RIAs), per the SEC’s Investment Adviser Public Disclosure website. This, by extension, makes professionals working for the firm or one of its branches’ investment advisor representatives (IARs). Because of these designations, every employee must act in a fiduciary capacity.

Fee Structure

Edward Jones uses a fee-based structure to charge clients. This means you may need to pay either a commission on products you buy or a flat fee. For the latter, you’ll pay a percentage of AUM, which will go up or down depending on which tier you fall into. Below is a full breakdown of each product level and the costs that go along with it:

Account Type	Cost
Select Account	Commission-based, typically around 0.99% to 4.5% of purchases or investments.
Guided Solutions	1.35% of AUM annually for minimum investments. However, the percentage drops with more AUM.
Advisory Solutions	1.35% of AUM annually for minimum investments. However, the percentage drops with more AUM. There’s also a portfolio strategy fee ranging from 0.09% to 0.19%.

You should also be aware that some investments you make under the guidance of an advisor may result in additional fees. These stem from management or transaction costs, especially if you buy shares of a mutual fund or ETF.

Investment Philosophy

According to its website, Edward Jones’ investment philosophy prioritizes long-term gains and diversification to curb ever-changing market conditions while avoiding “investment fads.” This typically means an advisor will help build your portfolio by buying and holding various types of assets and securities, such as:

• Stocks
• Bonds
• Mutual funds
• ETFs
• CDs
• REITs

Keep in mind that the approach an expert takes with your portfolio can vary depending on how much you have at your disposal and your preferences. For example, if you’re looking for short-term gains, you may look to invest in securities that help you do that, such as CDs. But, if you’re planning for retirement, buying and holding mutual funds may be a wiser play.

Disclosures

Per its Form ADV, Edward Jones has had several disclosures against them over the years. These can be any combination of customer complaints, compliance issues, employee terminations, regulatory actions, bankruptcy filings, or criminal proceedings. For example, in 2002, the Virginia Corporation Commission, Division of Securities and Retail Franchising found that the firm violated the state’s Securities Act. In 2010, however, the matter was resolved.

Before working with an advisor, either with Edward Jones or another firm, be sure to thoroughly research their dealings through the SEC’s Investment Adviser Public Disclosure (IAPD). This useful tool allows you to see any disclosures, as well as a person or company’s credentials.

Customer Service

Edward Jones encourages clients to contact their local branch for any non-emergency needs. You can do so by visiting the advisor’s web page and either calling their phone number or emailing them. Alternatively, the firm offers corporate resources if you can’t reach a local office:

• Client resources (for account or trading questions) – (800) 441-2357, 7am to 5:30pm CT, Monday-Friday
• Headquarters – (314) 515-2000, 7am to 6pm CT, Monday-Friday
• Online access

How to Become a Client

If you’re interested in becoming a client, you can schedule a free consultation with a local branch. An advisor will sit down with you to understand your goals and current situation and sign you up for one of the company’s products. At this point, you’ll also receive an account where you can make investments according to the guidance of your financial expert.

Tips for Choosing a Financial Advisor Firm

Finding an advisor firm isn’t an easy choice. It’s best to select one willing to work with your goals and needs in mind. Also, ensure the person serving you is of high quality and aligns with your preferences.

Minimum investment and cost are additional factors. Some, such as Edward Jones, don’t have a steep barrier to entry. Others require you to be in at $50,000 or more. Then, you’ll need to be sure you can afford the annual fees, which commonly take a percentage of AUM.

With so many options, it’s a smart practice to compare your options to find the professional that best fits your needs. This free matching tool will help you identify three vetted financial advisors in your area that align with your goals. Then, it’ll be up to you to sit down with them for consultations and decide who’s the right choice.

Methodology

The information in this review is based on publicly available information directly from Edward Jones’ website and the SEC. Neither the firm nor its representatives have any say on what we’ve included on this page.

Frequently Asked Questions

Does Edward Jones charge for initial consultations?

No, the firm’s local branches won’t charge you for a preliminary sit-down. In this meeting, an advisor will ask questions about your financial goals and current situation. Then, they’ll attempt to match you with a corresponding plan.

What percentage does Edward Jones take?

This depends on your plan and how much you want an expert to manage. For instance, if you choose the Guided Solutions product and only invest a minimum of $5,000, you’ll end up paying around 1.35% of AUM. As you invest more, the percentage should drop.

Does Edward Jones have a good reputation?

Generally, Edward Jones has a good reputation. It ranks above average in J.D. Power’s Investor Satisfaction rankings and is a nationally renowned brand. However, the company does have several disclosures in its Form ADV.

How can I research an Edward Jones advisor beforehand?

It’s wise to look into an expert before working with them. You can do so by using the SEC’s Investment Adviser search tool. Or, if they’re a broker, you can use FINRA’s BrokerCheck to verify their credentials.