Edward Jones review: Is Edward Jones a good company to invest with?
Updated: September 25, 2024
If I need expert guidance on buying a house, I’ll find a realtor who can help me with buying or selling my home.
However, when it comes to getting financial advice, only 25% of Canadians are working with a financial advisor1. Although there’s interest in receiving advice, cost is one of the most significant barriers.
You may have heard from friends or family members who have experience working with a financial advisor. One of the most popular financial advisory firms is Edward Jones. Founded in 1922, this company set up shop in Canada in 1990. It now has over 50,000 associates across the US and Canada.
Many investors have questions about its services, as the company is known for its high fees, complexity and possible conflicts of interest. Here, we’ll provide an honest Edward Jones review by sharing our transparent viewpoint on whether Edward Jones is worth considering.
Who is Edward Jones For?
Paying for an Edward Jones financial advisor to help you reach your investment goals may be worth it for some. For example, it could be a viable option if you’re too nervous to do it yourself (DIY) or try a robo-advisor and you’re okay with paying high fees. Furthermore, this may be ideal for investors who prefer face-to-face, personalized financial advice—especially if you manage multiple investment accounts. Retirees or individuals focused on long-term planning may also find this company to be a strong contender.
Who is this not for? Quite frankly, it’s not suitable for those seeking low-cost investment options or who prefer to manage investments independently. Keep in mind that tech-savvy or DIY investors may find Edward Jones lacking in digital tools. So, while it may not be for everyone, this may appeal to a specific type of investor.
Available accounts offered by Edward Jones
These are the types of investment accounts you can open:
- Registered Retirement Savings Plan (RRSP)
- Registered Retirement Income Fund (RRIF)
- Registered Disability Savings Plan (RDSP)
- Locked-in Retirement Plans (LIRA)
- Tax-Free Savings Account (TFSA)
- Registered Education Savings Plan (RESP)
- Brokerage accounts: Individual accounts or joint accounts
- Non-registered accounts, including margin accounts
A registered account offers tax benefits, whereas a non-registered account does not. Business owners also have access to corporate and trust accounts. Plus, the team of financial advisors can assist with estate planning to ensure you and your loved ones' needs are met.
Edward Jones investment strategy
The investment strategy at Edward Jones is based on active management, which means that financial advisors select certain stocks based on market performance. This differs from passive management, which is based on following an index fund. The company claims they have years of experience balancing active and passive investment strategies based on clients' needs. Although this may sound great, studies have shown that active portfolio managers tend to underperform low-cost index funds.
Another critical factor is that when a portfolio is actively managed, the “churning” of investments (from frequent buying and selling of stocks or funds) will quickly accumulate high fees. Due to the lack of transparency in how these investment decisions are made, it’s challenging for the client to understand if these frequent trades are necessary.
Fees and Commissions
Trading fees:
The Guided Portfolios and Portfolios Program both have an annual program fee that starts at 1.5%.
The program fee includes tailored strategy fees, regular portfolio reviews and rebalancing, trade execution and performance reporting. You can get a reduced rate if you have more assets.
Your financial advisor may receive a commission or apply a sales charge when you buy or sell stocks, bonds, exchange-traded funds (ETFs) and mutual funds. These fees are built into the Edward Jones stock prices, which are hidden.
With a brokerage account, when you buy or sell investments, you may be charged 0.5% to 3.0% based on the value and type of investment.
Account fees:
The annual maintenance fees for registered and non-registered accounts are:
- RSP/RIF/Locked-in accounts (holding equities, units, ETFs, GICs, debt instruments): $125
- RSP/RIF/Locked-in accounts (holding mutual funds and/or cash): $50
- TFSA: $50
- Additional accounts in the same name: $50
There are additional charges for services including:
- Account transfers: $135
- Wire transfers: $25
- Stop payment request: $25
Other notable fees:
Since many of these fees are baked into the prices, it may be hard to determine how much you’re paying in annual fees. Here are the ones to take note of:
- Management Expense Ratios (MERs) on mutual funds: ~2%
- Dollar Cost Averaging (DCA) program: 2% of the principal or $5 fee, whichever is higher
- Dividend Reinvestment Program (DRIP): 2% fee based on the amount you reinvest
- Trailing commissions, deferred sales charges (DSC) and Low Load (LL) purchase options for mutual funds
- Referral or commission-based fees are charged for selling you insurance, a mortgage and other financial products
Based on our research, digging up these fees can feel like going through a maze and the language used in these documents is quite convoluted.
Impact of fees on your portfolio
Let’s say, for example, an investor starts with an investment of $35,000 and adds $12,000 each year. The annual interest is 6%. The table below shows how the cumulative effect of fees will affect the investment portfolio throughout 10, 20 and 30 years.
| Annual performance | Financial advisor | Discount brokerage |
|---|---|---|
| Fees | 2.5% from a financial advisor | 0.25% from a brokerage |
| The net rate of return | 6.0% - 2.5% = 3.5% | 6.0% - 0.25% = 5.75% |
| 10 years | $190,147.67 | $217,541.74 |
| 20 years | $408,998.79 | $536,817.49 |
| 30 years | $717,709.91 | $1,095,248.71 |
As you can see, after 30 years, your investment will grow to $717,709.91, while investing through a brokerage can earn you $1,095,248.71. That’s a difference of $377,538.80.
The more time you invest in the stock market, the wider the gap becomes, as the high fees diminish the returns. This illustrates the importance of understanding the total costs of what you’re paying before you commit to going with an Edward Jones financial advisor.
Related read: Best discount brokerages in Canada
App and website usability
Clients of Edward Jones can access their online account through a web browser or by downloading the mobile app from Apple’s App Store or Google Play Store.
When you have your online access set up, you can view your accounts 24/7. Also, you can track your investment performance, look up the transaction history, set up pre-authorized transactions, make direct deposits, transfer funds, sign electronic documents and send messages to your Edward Jones team.
If you want to crunch some numbers, the Edward Jones website provides financial tools such as a retirement calculator, investment calculator and life insurance calculator.
Customer service and support
When you’re paying a premium for financial advice, you should expect quality customer service. First, you can check the availability of your Edward Jones branches for in-person meetings with advisors using their search tool. It will tell you the advisor’s office address, hours of operation, if they have extended hours (such as web conferencing) and their phone number.
If your dedicated Edward Jones financial advisor or local branch team isn’t able to assist you with your needs, you may reach out using the following methods:
| Client relations | Headquarters | Website | Online access |
|---|---|---|---|
|
(877) 370-2627
8:00 a.m. to 5:00 p.m. ET, Monday to Friday |
(800) 441-2222
8:00 a.m. to 5:00 p.m. ET, Monday to Friday |
You can fill out the contact form on the website | Enroll in Online Access to view your account and make transactions |
If you call the headquarters, the switchboard operator can transfer you to one of the branch offices or a headquarters associate.
You can also follow the company on social media through Facebook and LinkedIn to receive updates on widespread emergencies. Outside their business hours or on weekends, you can troubleshoot your issue through the FAQ section.
The strength of the client-advisor relationship will depend on what service you’re looking for and how often you prefer to touch base to review your financial goals and receive updates. It’s recommended that you meet with your financial advisor once per year. Meeting every quarter may be a wise choice to ensure that you stay on track with your goals and that your financial advisor is working hard to meet your needs.
The Edward Jones investment reviews in online forums are mixed. Some customers have shared negative experiences, while others want to stick with their financial advisor because they feel uncomfortable making their own investment decisions.
At the end of the day, it boils down to the relationship you have with your advisor. Remember, you can always switch to someone with similar interests and from whom you get a good vibe.
Edward Jones pros and cons
Pros
-
Personalized, relationship-based service from dedicated advisors
-
The convenience of having access to multiple account types and services in one place
-
A large number of branches and local presence for in-person support
-
Access to other products such as insurance, annuities and mortgages
-
The company has been named one of the “The Best Employers in Canada” in 2023
-
They are involved in the community and have raised money for various causes
Cons
-
High fees and commissions that will erode long-term returns
-
Lack of transparency around how fees are calculated
-
Edward Jones investment reviews from online community forums have mixed responses, mainly from the high-cost structure and lower-than-average market returns
-
High overhead costs from having many offices
-
Limited digital tools and reliance on face-to-face interactions may not appeal to younger, tech-savvy investors
Edward Jones alternatives
There are several options beyond what Edward Jones can provide you. Here are the three most common alternatives to consider:
Fee-only advisors:
- Transparent, upfront pricing with no commissions or incentives for selling products
- They typically charge an hourly rate or flat fee
- Focus on providing pure, unbiased financial advice without conflict of interest
- Examples include Objective Financial Partners and AdviceOnlyPlanners.ca
Robo-advisors:
- Provide low-cost, automated investing with minimal management fees
- Your portfolio is customized based on a questionnaire that you fill out
- Digital-first experience with tools for easy account setup, monitoring and rebalancing
- Examples include Wealthsimple, Questwealth and Justwealth
Self-directed platforms:
- Ideal for experienced investors who want control over their portfolios
- Lower trading fees or even commission-free, especially for ETFs and stocks
- Generally, no advice or personalized planning is included
- Examples include Questrade, TD Direct Investing and Qtrade
Comparing Edward Jones vs. Robo-advisor vs. Self-directed investing
To give you a general idea, here’s a table that compares fees, services and ideal users for Edward Jones versus these alternatives.
| Fee categories | Edward Jones | Wealthsimple (managed investing) | Questrade |
|---|---|---|---|
| Investment service | Financial advisor | Robo-advisor | Self-directed |
| Annual contribution | $25,000 | $25,000 | $25,000 |
| Annual return | 6% | 6% | 6% |
| Annual fees | 2% to 3% | 0.4% to 0.5% + MER | $4.95 to $9.95 + MER |
| Fees paid | $12,673 | $2,182 | $1,579.75 |
| Ending balance after 5 years | $136,710 | $147,201 | $147,853 |
| Percentage paid in fees | -8.48% | -1.46% | -1.02% |
| Service and support |
● Talk to your advisor
● Online account ● Social media ● Browse FAQs |
● Email, chat, or phone
● Priority support for Premium and Generation clients |
● Talk, email or chat
● Get instant support ● Learning centre ● Browse FAQs |
| The ideal user | Prefers in-person meetings with a dedicated advisor who can give investment advice | Likes the idea of having technology to manage their investments and paying moderate fees | Wants to have control in managing their portfolio and are comfortable making decisions |
| Reviews | You're reading it! | Wealthsimple review | Questrade review |
| Get started | Go to Edward Jones | Get a robo-advisor | Direct your investments |
Please note that these fees can vary depending on the type of investment, MERs and possible foreign exchange fees. Before you make any transactions, look up your provider's updated fees.
Eligibility criteria and how to open an account
To open up an account with Edward Jones, you’ll need to meet these basic requirements:
- A resident of Canada, the age of majority (either 18 or 19 based on your province or territory). There may be additional requirements based on the account you choose.
The minimum investment amounts to open different types of accounts are as follows:
- Brokerage account: $0 minimum
- Guided portfolios: $25,000 minimum
- Portfolio program: $15,000 minimum
Here are the steps to open an account with Edward Jones:
Step 1: Search for a financial advisor by location or by name.
Step 2: When you’ve narrowed your search, you can share your contact information via their profile page. They will contact you to schedule a free consultation.
Step 3: You can meet them virtually or in person. You'll review your goals, assess your investing profile and discount investment options.
Step 4: When you've chosen a financial advisor, they’ll set up your account and online access.
When they open your investment accounts, you’ll need to provide documentation, such as photo identification (a driver’s license or passport), Social Insurance Number and date of birth.
Once the account is opened, you can view it online, access the account statements and tax documents, review trade confirmations, view reports from your financial advisor and sign up for e-Delivery notifications.
FAQs
Sandy Yong is the author of the award-winning book, The Money Master: Inside Secrets On How To Make Your Money Grow and Stay Safe. She has been featured in the Toronto Star, NBC News and Yahoo! Finance.
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