Compare Edward Jones vs Fidelity, Vanguard, Charles Schwab, and TD Ameritrade (2019)



Edward Jones vs Vanguard & Co: Compare Fees


Broker Fees Stock/ETF
Commission
Mutual Fund
Commission
Options
Commission
Maintenance
Fee
Annual IRA
Fee
Ally Invest $0 $9.95 $0 + $0.50 per contract $0 $0
TD Ameritrade $0 $49.95 $0 + $0.65 per contract $0 $0
Fidelity $4.95 $49.95 $4.95 + $0.65 per contract $0 $0
Charles Schwab $0 $76 ($0 to sell) $0 + $0.65 per contract $0 $0
Etrade $0 $19.95 $0 + $0.65 per contract $0 $0
Vanguard $7-$20 $8-$35 $20 + $1.00 per contract $20* $20*


Edward Jones vs Charles Schwab & Co: Compare Services


Broker Review Cost Investment Products Trading Tools Customer Service Research Overall Rating
Ally Invest
TD Ameritrade
Fidelity
Charles Schwab
Etrade
Vanguard
Edward Jones


New Account Promotions

Ally Invest: Up to $3,500 cash bonus + 90 days of commission free trades (up to $500 in value).

Open Ally Invest Account

TD Ameritrade: Trade stocks and ETFs for free + get up to $600 bonus.

Open TD Ameritrade Account



Competitors of Edward Jones: Fidelity and Others


Edward Jones provides a full-service platform for investors. The firm does not offer discount, self-directed brokerage services like the other firms in this review. Incidentally, the other companies in the comparison are the seven largest discount brokerage houses in the country that offer self-directed accounts. Self-directed means that you are making investment decisions yourself, the opposite of full-service account, where all or most decision-making is handed over to the company.

Edward Jones' two main competitors, Fidelity Investments and Vanguard, are known for their own families of mutual funds and ETFs. But through these firms clients can also buy and sell stocks, options, bonds and other investments.

TD Ameritrade, Etrade, and Charles Schwab are the household names, the largest discount brokerage houses in the U.S. These companies are very popular among all investors - from beginners to institutions. Ally Invest is a twelve-year old brokerage house that have been experiencing rapid growth and is now big enough to be included in this comparison.


Pricing

There is a huge difference in pricing structure between Edward Jones and its competitors. Like all full service firms, Edward Jones is charging a percentage of all client's assets EVERY year as a fee - anywhere from 0.50% to 1.50%, plus an annual fee of $300. This is a huge amount to pay in fees, especially when added over the years and considering the loss of potential investment gain.

TD Ameritrade, Schwab, and Ally Invest are charging $0 per trade for stocks and ETF's, which is below the average in the industry. Vanguard's rate depends on client's amount invested in Vanguard products, and ranges from $20 per trade for investments of under $50,000 and all the way down to $0 for clients with over $10 million invested in Vanguard products.

Ally Invest is the cheapest for mutual fund investors, with low $10 per transaction rate for transaction-fee, no-load mutual funds. Etrade charges $20 per transaction. Other companies have much higher rates: from $50 to $76 for the same trades.

There are thousands of commission-free (NTF program) mutual funds to choose from in all these firms (excluding Edward Jones). Keep in mind, that Fidelity Investments is charging a $75 short-term redemption fee for mutual funds sold less than 180 days after being purchased. There is also a $12 annual Low Balance Fee for any non-core Fidelity fund with balance under $2,000.

When it comes to additional fees, Fidelity Investments does not charge account maintenance (except $25 year for SIMPLE IRA) or inactivity fees, and does not add surcharges on penny stocks, orders with over 1,000 shares, and extended hours trading. Vanguard is charging $20 annual maintenance fee (waived if user chooses to receive statements and other information electronically). Other discount brokers don't have annual account fees.


Edward Jones vs TD Ameritrade


Services

TD Ameritrade offers their customers access to online investor communities, where users can see what other, more advanced members invest in or trade, create blogs and follow other members blogs, and interact with like-minded individuals.

TD Ameritrade and Ally Invest are the best ranking firms in customer service. Fidelity Investments and Charles Schwab also got very high ratings in this category.

All the companies in this review (except Vanguard and Edward Jones) created easy-to-use, powerful trading tools that will satisfy everyone but day-traders. But only TD Ameritrade offers professional trading platform (ThinkOrSwim) that is a must-have for very active traders as well as for forex and futures trading. It is free to use and has no access requirements.

All eight brokerage firms offer good to excellent independent investment research that will please most average investors. Fidelity and TD Ameritrade stand out from the pack, each offering investment research from twelve (!) different companies.

Because TD Ameritrade and Ally Invest created well-designed, intuitive trading screens, offer access to helpful online community (TD Ameritrade), the largest network of local offices (TD Ameritrade), and provide award-winning customer service, we rated them the Best Brokers for Beginners.


Edward Jones vs Fidelity


Our Recommendations

Beginner Investors: we recommend Ally Invest and TD Ameritrade.

IRA accounts: TD Ameritrade, Ally Invest, Fidelity Investments, Etrade, and Charles Schwab.

Stocks/ETFs Traders: TD Ameritrade and Ally Invest.

Options Traders: Ally Invest.

Long Term, Inactive Investors: TD Ameritrade, Charles Schwab, Fidelity Investments, and Etrade.

Mutual Funds Investors: Ally Invest and TD Ameritrade. Fidelity, Charles Schwab, and Vanguard if investing mostly in their own families of mutual funds.

Small accounts: Ally Invest.

Large accounts ($1 million or more): Vanguard.


New Account Promotions

Ally Invest: Up to $3,500 cash bonus + 90 days of commission free trades (up to $500 in value).

TD Ameritrade: Trade stocks and ETFs for free + get up to $600 bonus.

Charles Schwab: Make $100,000 deposit and get 500 commission-free online equity and options trades.

Fidelity Investments: Get 500 free trades with $100,000+ deposit.

Edward Jones and Vanguard: None







Edward Jones Conflict of Interest


We discuss a conflict of interest at the company in our review of Edward Jones for U.S. customers.


Edward Jones vs Charles Schwab


Edward Jones Overview


Individual investors seeking an investment firm that they can grow into will be familiar with Edward Jones. Jones Financial Companies is the parent firm for Edward Jones Investments and Edward Jones Trust. As investor clients’ needs change, they are able to stay with the full service company through their investing years into their trust years.

Because Edward Jones caters exclusively to individual investors, its business is based on cultivating one-on-one relationships between financial advisors and clients. Edward Jones has over 11,000 offices in the US and Canada serving over 7 million investors, and most of those offices are run by a single financial advisor.


Services Provided


Ideally, the company solicits young investors looking to establish IRAs and aggressive growth investment portfolios, advises them through life changes that precipitate purchase of insurance products, and eventually grooms them for management of their wealth in trusts. But in reality, the clientele tends toward the established investor which drives the conservative style of the company.

As a full service firm, Edward Jones offers brokerage services, insurance policies for life, long-term healthcare and disability, trust management, custodial and account management including checking, debit and credit cards, as well as providing investment advisory and market information and research resources. With a full service firm like Edward Jones, an investor can be as involved in the management of his finances as he chooses from complete autonomy to full dependence upon his financial advisor.


Rates and Fees


But full service will cost the indifferent investor. Like any other full service investment firm, Edward Jones is in business to make a profit, and most of that profit comes from clients. Clients pay for the convenience of having someone else prepare the detailed research, make the recommendations, manage the accounts, etc.

For example, Edward Jones charges $40 a year to manage an IRA (plus $20 per each additional IRA). There is the normal transaction fees for mutual funds and huge 2.00% charge for stock trades. Compare that to a discount broker where there is no annual fee for the account and a stock trade costs $0 at Ally Invest or TD Ameritrade, but the investor is left on his own to strategize his investments.

Clients receive full disclosure of Edward Jones’ fee schedules for whatever type of account they open. Copies of the fee schedules are readily available in any office, and the branch office manager ensures that clients receive any updates.