In addition to a commission, Edward Jones generally charges a $4.95 transaction fee when you buy or sell stock in a Select Account.

Investment fees can hurt your overall returns For portfolios with a $100,000 value, a 1% annual fee can reduce that value by as much as $30,000. “The average investor pays from approximately 1.5% to 2% annually,” says Stuart Boxenbaum, CFP®, investment advisor and president of Statewide Financial Group.

Edward Jones maintains a lot of sales representatives, brokers, financial advisors, and real estate, which tends to be the primary reason why their fees are so high for clients.

Edward Jones does not charge commissions or fees with respect to the liquidation of mutual fund investments and does not share in any CDSC assessed by the mutual fund management company or distributor. All mutual funds carry built-in operating expenses that affect the fund's return.

Commission And Fees

How Much Money Do I Need to Start Investing in Stocks? Technically, there's no minimum amount of money needed to start investing in stocks. But you probably need at least $200 - $1,000 to really get started right. Most brokerages have no minimums to open an account and get started buying stocks.

While 1% is the most common percentage charged, there are many factors that go into an advisor's choice of percentage. The percentage can be as high as 3% on smaller accounts, as they can be labor-intensive for advisors and challenging to manage profitably.

How Can I Avoid Investment Fees? To avoid or reduce investment fees, start out with no fee brokers. Most online brokers now do not charge fees or commissions for transacting buy and sell orders of stocks. Utilize low-cost index funds with low expense ratios.

As one ex-Jones advisor who went independent put it, “The breakdown in culture at the firm has led to Edward Jones advisors to going independent and creating the culture that they miss. There is a whole network of former Edward Jones advisors who help and support each other in a way that feels like the Jones of old.”

Some of the products Edward Jones sells come with high fees, such as life insurance and annuities. But that will be true at any other firm for those same financial products. EJ says that 36% to 40% of these commissions go straight to the advisor.

Key Takeaways. A front-end load is a sales charge or commission that an investor pays "upfront" - that is, upon purchase of the asset. The percentage paid for the front-end load varies among investment companies but typically falls within a range of 3.75% to 5.75%.

Fees and expenses Edward Jones charges an annualized fee, based on the value of assets held in the client's account.