Edward Jones vs Ameriprise Fees

Edward Jones vs Ameriprise Fees

Choosing a financial advisor requires careful consideration of the associated fees. Both Edward Jones and Ameriprise offer a range of services, but how do their fees compare? Understanding the nuances in their fee structures can help you make an informed decision.

Edward Jones Fee Structure

Edward Jones operates on a commission-based model. They charge fees for each transaction and ongoing account maintenance.

Transaction Fees

• Stocks: Typically $4.95 to $19.95 plus $0.02 per share
• Bonds: Typically $1 to $5 per bond
• Mutual Funds: Purchase fees can range from 1% to 5.75%

These fees may vary depending on the specific investment type and amount. Commission fees can quickly add up for active traders.

Account Maintenance Fees

Edward Jones also charges ongoing fees for account management. These can include:

• Annual Account Fee: Generally around $40 per account
• IRA Fee: Often $40 per year
• Advisory Fees: Typically between 1.35% and 2.50% of assets under management (AUM) per year

For investors seeking personalized advice and hands-on management, these fees are in line with industry standards. However, they can be higher compared to robo-advisors.

Ameriprise Fee Structure

Ameriprise provides both commission-based and fee-based accounts. This dual structure offers flexibility depending on client needs. Here, we will break down the core fee components.

Transaction Fees

• Stocks: Trading fees can range from $15 to $50 per transaction
• Bonds: Usually around 1% markup on the trade
• Mutual Funds: Sales loads vary, with some funds charging up to 5.75%

As with Edward Jones, Ameriprise charges commissions on transactions that vary based on the asset class and volume traded.

Account Maintenance Fees

Ameriprise’s account fees can include the following:

• Annual Account Service Fee: Typically ranges between $80 and $150
• IRA Custodial Fee: Around $50 per year
• Advisory Fees: Generally between 0.85% and 2.00% of AUM annually

These fees reflect a blended pricing model. They accommodate different investing styles, whether transactional or advisory-based services.

Additional Costs to Consider

Beyond the core fees, both Edward Jones and Ameriprise may impose additional costs:

• Termination Fees: Fees for closing or transferring accounts (usually $95 to $125)
• Wire Transfer Fees: Charges for wiring funds to external accounts ($25 to $50 per transfer)
• Paper Statements: Fees for physical statements if you opt out of electronic delivery (around $2 per month)

These ancillary fees contribute to the overall cost of managing your assets and should be factored into your decision-making process.

Conclusion Without a Conclusion

With careful review, Edward Jones and Ameriprise fees reveal pivotal distinctions. By understanding these details, investors can tactically navigate their offerings.