Investing Assets & Markets Mutual Funds Should You Invest With Edward Jones? Edward Jones Review, Complaints, and Background By Kent Thune Kent Thune Twitter Kent Thune has spent more than two decades in the financial services industry and owns Atlantic Capital Investments, an investment advisory firm, in Hilton Head Island, South Carolina. He's written hundreds of articles for a range of outlets, including The Balance, Kiplinger, Marketwatch, and The Motley Fool. learn about our editorial policies Updated on October 11, 2022 Reviewed by Robert C. Kelly Reviewed by Robert C. Kelly Robert Kelly is managing director of XTS Energy LLC, and has more than three decades of experience as a business executive. He is a professor of economics and has raised more than $4.5 billion in investment capital. learn about our financial review board Fact checked by Hans Jasperson Fact checked by Hans Jasperson Hans Jasperson has over a decade of experience in public policy research, with an emphasis on workforce development, education, and economic justice. His research has been shared with members of the U.S. Congress, federal agencies, and policymakers in several states. learn about our editorial policies We independently research, test, review, and recommend the best products—learn more about our process. If you buy something through our links, we may earn a commission. Photo: Luis Alvarez / Getty Images Edward Jones provides financial advice and planning services through its network of branches across the United States and Canada. What Is Edward Jones? Edward Jones is a full-service firm founded in 1922. It takes a personal approach to investing by placing advisors in many areas around the U.S. It provides investment advice and help with retirement planning. The firm built its seven-million-strong clientele by placing locations all around the U.S. and Canada. It has more than 19,000 financial advisors and other employees in more than 15,000 branches across North America. Most offices are modest in size. Edward Jones attempts to be the "advisor next door." It strives to build long-term rapport with its clients built on trust. It tends to use mutual funds and a basic model of building diversified portfolios for clients who are saving for retirement and other long-term goals. Should You Invest With Edward Jones? The choice to invest with Edward Jones is based on location. You have to trust the firm, but you should trust the local advisor first, and you should have a good working relationship with your advisor. One of the first questions you should ask a potential advisor is how they get paid. Edward Jones is paid through revenue-sharing with a network of mutual fund companies. Edward Jones and Mutual Fund Fees Edward Jones is a big user of load mutual funds, such as American Funds, that offer a large choice of mostly high-quality funds. These funds have various pay structures through mutual fund share classes. They can be front-load funds, back-load funds, or load-waived funds with 12b-1 fees. Edward Jones doesn't invest client assets in only no-load funds, which may be better for investors than load funds that have sales charges. It's key to understand mutual fund fees before investing, no matter your trust level. Edward Jones Reviews and Complaints Although Edward Jones is a highly regarded firm looking out for the interests of the Main Street investor, its history is not without scandal or complaints from clients. The firm was hit with allegations that it hadn't disclosed conflicts of interest in 2004. It was alleged that Edward Jones failed to tell clients that the funds being recommended to them were selected because they offered Edward Jones payment. The choice was not made through a rigorous screening. Edward Jones paid a $75 million settlement with the SEC. Edward Jones was then sued in a federal court in 2018. Complaints claimed that the firm had "pressured its more than 16,000 brokers to switch their largely middle-income brokerage customers from commission accounts into advisory accounts that charge as much as 2% of assets annually." The national average for fee-based advisors is just over 1% of assets. The culture at Edward Jones may have vastly improved since these lawsuits, but it's still best to use the "buyer beware" approach when choosing an advisor. The Bottom Line Investors should do their homework by researching the history of a firm. Interview the advisor. Ask about their investment philosophy. Ask how they get paid. Frequently Asked Questions (FAQs) Is Edward Jones a fiduciary? Edward Jones offers fiduciary services, but you shouldn't assume that your service has a fiduciary obligation unless the plan explicitly says so. For example, the retirement plan services fee pays for fiduciary advice for that plan, but that isn't necessarily the case with other plans. How does Edward Jones make money? Edward Jones makes money through a variety of fees on its plans and services.The firm profits from brokerage accounts through trade commissions. With guided and advisory services, Edward Jones profits from a 1.35% program fee on total assets in addition to other fees and costs. Was this page helpful? Thanks for your feedback! Tell us why! Other Submit Sources The Balance uses only high-quality sources, including peer-reviewed studies, to support the facts within our articles. Read our editorial process to learn more about how we fact-check and keep our content accurate, reliable, and trustworthy. Edward Jones. "Firm Profile." U.S. Securities and Exchange Commission. "Edward Jones to Pay $75 Million to Settle Revenue Sharing Charges." AdvisorHub. "Edward Jones Sued for Shuttling Customers to Fee Accounts." Edward Jones. "Understanding How We Are Compensated for Financial Services," Page 2.