Edward Jones Investment is a financial company with its headquarters based in the United States of America. Since it is an investment company, its main business includes clients interested in financial services. Edward Jones Investment company earns its revenues from its client margin. Other than that, the company also earns its revenues from cash and cash equivalents, cash and investments segregated under federal regulations, securities purchased under agreements to resell, partnership loans, inventory securities, and investment securities. Keep reading to know How Does Edward Jones Make Money?
However, there is also a transaction fee that Edward Jones charges for trades and transactions. Edward Jones also allows customers to invest in the company which can also be one of the sources of their income. The initial investment starts from $5,000.
Edward Jones Other Services
Edward Jones Investment is not just into investment and other financial-related business but, they come up with other services as well. It has got products related to investments, also for home-related business around the country.
So, these are some extra services that the company offers and also become the reason for their generating income. With such tight competition in the market, Edward Jones comes with helpful business-related services.
It not only works within the United States of America, but the company has its operations based in some parts of Canada as well. Edward Jones boasts when it comes to its services to their customers because the company serves almost more than 7 million investors.
Edward Jones Fee Structure
For every product and service, there is a fee that the customers have to pay. This fee paid by the customers becomes can also become one of the methods for the company earning its revenues. Some products that are offered by Edward Jones are costly, such as their life insurance and annuities.
The only thing that becomes a major setback for the company is that they charge a higher fee than other companies. So, people are a lot hesitant to invest in the company and therefore they switch to other companies.
Since the company is also in trading and investments, they charge a certain amount of money for each transaction. In addition to the $4.95 trade transaction fee customers would also have to pay some commissions as mentioned in the table given below.
| Range | Principal Amount | Fee | Maximum Fee In Range |
| 1 | -to $5,999.99 | 2.50% | $150.00 |
| 2 | $6,000 to $9,999.99 | 2.00% + $30.00 | $230.00 |
| 3 | $10,000 to $24,999.99 | 1.50% + $80.00 | $455.00 |
| 4 | $25,000 to $99,999.99 | 1.00% + $205.00 | $1205.00 |
| 5 | $100,000 and above | 0.50% + $705.00 | Unlimited |
Edward Jones Competitors In The Market
Just like any other company in the world Edward Jones also has to face tight competition with other similar companies. Since they charge a higher price Edward Jones becomes a setback for most customers. One of the biggest competitors of Edward Jones is Vanguard.
The following are the competitors of Edward Jones:
| Company Name | CEO | CEO Rating | Employees | Funding | Revenue |
| Edward Jones | Penny Pennington | 54/100 | 49,000 | $0 | $9.4 Billion |
| Vanguard | Mortimer J. Buckley | 70/100 | 17,300 | – | $2 Billion |
| Fidelity | Abigail. P Johnson | 92/100 | 38,500 | $3.6B | $21B |
| Charles Schwab | Walter W. Bettinger II | 59/100 | 19,500 | $2.3B | $18B |
| Morgan Stanley | James P. Gorman | 71/100 | 57,633 | $24.3B | $58.3B |
Looking at the competitors of Edward Jones, then we can see that there are other companies that doing good in investment advising services. But, this does not mean services provided by Edward Jones are not good. The company ensures high-quality services to its customers.
It is the numbers that matter a lot because Edward Jones has got over $1.3 trillion in assets with more than 7 million investors. The company is in full function operating in both US and in Canada. They have their branches in thousands in these two countries. Edward Jones has got the most offices in the United States.
Conclusion
Edward Jones Investment is such a company that is one of the best financial advising companies in the United States of America. The company overlooks a lot of things in their daily business activities. If you are looking for a company where you can invest then Edward Jones can be the one that might be suitable for you but most people find it quite costly.
Edward Jones has built its trust among the people or the customers all around the US and in Canada as well. We hope that the company will increase its operations and spread to other parts of the world as well in the future.
The only thing that becomes a major setback for the company is that they charge a higher fee than other companies. So, people are a lot hesitant to invest in the company and therefore they switch to other companies.
Frequently Asked Questions
- What is the main role of the Edward Jones company?
Ans: Edward Jones is primarily a brokerage company that is into investment advice. The company also functions with other financial partners and offers other services.
- What is the major disadvantage of Edward Jones?
Ans: The major disadvantage or the major setback of Edward Jones is that they charge high fees from its customers. In comparison to other investment advisor companies then most people found out that Edward Jones charges higher than other companies.
- Who is the founder of Edward Jones?
Ans: Edward Jones Investment company was founded by Edward. D Jones. The company has its headquarters based in St Louis, Missouri, United States of America.
- What financial products does Edward Jones offer to their customers?
Ans: Edward Jones Investment offers a wide range of financial products to its customers. Some of them are as the following:
- Mutual funds (PDF)
- Money Market Mutual Funds (PDF)
- Municipal Bonds (PDF)
- Stock (PDF)
- Life Insurance (PDF)
- Closed-end Funds (PDF)
- How much do workers make at Edward Jones?
Ans: Workers at Edward Jones make a pretty decent amount of money.
- 1st year – total compensation $62,625
- 2nd year – total compensation $62,725
- 3rd year – total compensation $67,150
- 4th year – total compensation $73,575
