Edward Jones Account Closing Fee
Edward Jones has an account closure fee of $95 for both taxable and non-taxable (IRA) accounts.
Edward Jones Account Transfer Fee (ACAT)
Edward Jones' account transfer out fee to another brokerage company is $95 for both taxable and non-taxable (IRA) accounts.
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Edward Jones IRA Fees
A selection of Individual Retirement Accounts is available at Edward Jones. The firm provides Traditional, Roth, and Rollover accounts. There is a $40 annual fee for a retirement account held with the broker. For each additional IRA you have, the broker only charges $20.
There is no fee to setup a retirement account with Edward Jones, and there is no minimum level of activity required. There is also no low-balance fee. The brokerage house does charge a $95 fee to transfer or close an IRA.
Edward Jones IRA: Cost of Portfolio Management
Edward Jones is a full-service broker. As such, there are no self-directed accounts. The firm charges 0.85% to 2.50% of assets under management to buy and sell securities for its clients. In return for this fee, customers pay no commissions.
The percentage-based fee varies based on a variety of factors and can be negotiated. Larger accounts receive lower rates, while increasing the number of asset classes (adding fixed-income, for example) will increase the broker’s fee.
Edward Jones IRA Fees Comparison
Edward Jones is much more expensive than a self-directed on-line discount broker. Paying 1-2% or even more will add up over the lifetime of an account. The firm’s management fee is similar to Raymond James’ fee, which varies from 1.0% to 2.25%. However, Raymond James charges for commissions. Stocks and ETF’s are $9.95 per transaction. The broker’s IRA closeout fee is $100, $5 higher than Edward Jones.
Several discount firms have started offering managed accounts at lower rates. M1 Finance, for example, offers free investing.
Fidelity offers both managed and self-directed accounts. On the managed side, the company’s advisory fee starts at just 0.35% for a computer-traded system; while human advisors cost between 0.20% and 1.7%.
Despite the increased cost of investment advice, Edward Jones would be a good choice for retirement savers who need extra assistance, or otherwise don’t want the burden of financial management. The company operates a large chain of branch locations. There are more than 12,700 offices in North America, making it one of the largest chains in the world.
A $40 annual fee, or even $20, is more expensive than the yearly IRA fees that discount brokers charge. Firstrade, Merrill Edge, and Schwab don’t charge any on-going fees for retirement accounts. Other brokers may charge an annual IRA fee but provide ways to avoid it.
Charging $95 to close or transfer an IRA is rather steep, judged by industry norms. Firstrade and Schwab both charge $50 to transfer an account, while OptionsHouse clients pay $60 to close an IRA. Vanguard and TD Ameritrade charge nothing to close a retirement account.
Edward Jones Account Closing Fee Disclaimer
For the most recent information on broker fees, including Edward Jones closing fees for terminating an account, visit their website.
Chad Morris is a financial writer with more than 20 years experience
as both an English teacher and an avid trader. When he isn’t writing
expert content for Brokerage-Review.com, Chad can usually be found
managing his portfolio or building a new home computer.
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