Summary: As a full-service brokerage, Edward Jones comes with quality service and lots of options for investors, but at a higher price.
Unlike many discount brokerages available online, Edward Jones is a full-service broker. So what really comes with this type of service, and is it worth paying a little more?
A full-service broker is someone who not only provides the capability to invest, but many other things like tax advice and retirement planning, as well as extensive research and knowledge.
What to Expect When Choosing Edward Jones
This is the type of service I was looking for as a new investor. As someone who hadn’t invested in anything before, I needed an expert with the knowledge to help me learn.
So when I first opened a Roth IRA with Edward Jones over 5 years ago, I was aware of the fact that I’d have to pay a higher price for full-service treatment, and I felt an in-person broker would be the best way to go.
An advantage to working with an Edward Jones’ advisor is that the recommendations and investing strategy is easy to understand. Their investing policy is pretty straightforward, so you can be sure you’re not only getting the best
service, but gaining some knowledge of how to invest along the way.
While they offer a variety of portfolio options, including blue chip stocks and bonds, I chose to go with actively managed mutual funds. Under the Roth IRA umbrella, I’m able to invest in mutual funds that earn a pretty decent return and interest, all tax-free.
Even though Edward Jones approaches their clients in a more hands-on fashion, they won’t be in your face every day of the year. In fact, unless I call to ask for an update, my broker won’t get in touch with me except for twice a year.
Edward Jones Commissions and Fees
Unlike Edward Jones, a discount brokerage might be a better alternative to control your own investments. Although they might offer less service options, they’ll no doubt have lower fees.
You’ll also have to pay a yearly account fee of $40 for all retirement accounts, which can either be withdrawn directly out of your investment account or your bank account.
This makes Edward Jones an expensive option compared, but if you need the extra guidance and full-service features, then this could be a good option until you learn the investing ropes for yourself.