Christian Worstell | November 07, 2023
The ideal investment firm to handle your retirement nest egg has to be trustworthy and capable of giving you the returns you expect. Edward Jones and Fidelity Investments are two notable wealth management companies, but how do they weigh up against each other?
Read on to learn more about each investment firm's services to help you decide if either one is the right choice for you and your future.
Who Are Edward Jones and Fidelity Investments?
Edward Jones is a wealth management company providing personalized investment services in the U.S. It often works with individuals looking to invest their money in traditional investment products and, as such, offers financial advice.
Fidelity Investments is a full-service wealth management company that aims to make investing more accessible to everyone. It operates worldwide and provides a mix of robo-investing tools, traditional investment products and cash management services. It works with individuals, businesses and advisory firms.
Edward Jones Products and Services
Edward Jones provides a wealth of investment solutions for its investors, and its financial advisors pride themselves on the personal touch. There’s a digital platform you can use to access your accounts at any time, and financial advisors are based across the country in case you wish to meet in person. You’ll work with your own advisor to establish financial goals for the future. They work with you to pair you with the investment products and services to help you get there, including:
- Cash management: Services such as debit and credit cards, savings accounts and loans that you can access online to manage your cash effectively
- Retirement accounts: Traditional IRA, Roth IRA and rollover options to help you save for the future
- Fixed income investments: Stocks, bonds and CDs
- Insurance: Life insurance, long-term disability and long-term care insurance
- Exchange-traded Funds
For flexible investment management, Edward Jones also provides tiered brokerage accounts to suit your style of investing. Whether you want to call the shots yourself or would prefer to rely on a team of financial advisors to make decisions for you.
Fidelity Investments Products and Services
Fidelity’s aim is to make investing more accessible for individuals and businesses. They offer a mix of robo-advisors and dedicated financial advisors to help you manage your money in a range of investment products.
With a transparent price list and online tools and resources, Fidelity can provide:
- ETFs,including crypto investing and metaverse ETF
- Cash management with no account fees, mobile check deposit and a Visa rewards card
- Managed accounts via robo advisory, hybrid advisory or a dedicated financial advisory team
- Retirement IRAs
- Mutual funds
- Options
- Life insurances
Fees and Pricing
Edward Jones Fees
Edward Jones centers its services around personalized financial advice, so its fees may be a little higher than Fidelity Investments' fees. Fees change depending on which service you choose and how much you invest.
For example, you’ll pay a fee when you buy and sell stocks or ETFs, which could start at a $50 minimum or 2.5%, which reduces to around 0.1% if you invest more than $1,000,000. There may be fixed account fees for actions such as transferring money or terminating your services. A margin loan would incur an ongoing interest rate. Mutual funds may result in a sales charge, which varies from 4.25% to 5.75% depending on the value of the investment.
Fidelity Investments Fees
Fidelity has transparent pricing and affordable options to suit most investors, with no cost to open an account and zero costs for stock and options trading. It's also the first in the industry to provide zero expense ratio index mutual funds. There are no fees associated with account actions, either; wire transfers, late settlements, insufficient funds and ATM usage is all without cost.
The company's robo advisory and financial advisory services are where you’ll find fees, yet they’re still affordable for most investors. Fidelity Go costs nothing when investing under $25,000, and there are no account minimums. This increases a month when investing above %25,000 to 0.35%. For hybrid advice and dedicated advisors, the fees are between 0.5% and 1.5%, and the required account minimums vary between products.
Edward Jones vs Fidelity Investments: Who Should Manage Your Investments?
If you prefer the hands-on approach of personalized wealth management and can afford the higher fees, Edward Jones may be a wise choice for you. However, if you’re new to investing and you’re willing to explore digital options, including crypto investing and robo advisory services, Fidelity may be a good option to help you manage your money. Before you choose the best wealth management company, it's important to evaluate your financial goals to make an informed decision.
As a seasoned financial expert with years of experience in wealth management and investment analysis, I can provide valuable insights into the comparison between Edward Jones and Fidelity Investments. My comprehensive knowledge in the field allows me to dissect and evaluate various aspects of both firms to help you make an informed decision regarding your retirement nest egg.
Edward Jones:
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Wealth Management Approach: Edward Jones is renowned for its personalized wealth management services in the United States. Their focus lies in catering to individuals seeking traditional investment products, emphasizing a hands-on approach to financial advice.
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Service Offerings:
- Cash Management: Edward Jones offers services such as debit and credit cards, savings accounts, and loans accessible through an online platform.
- Retirement Accounts: Traditional IRA, Roth IRA, and rollover options are available to facilitate long-term savings.
- Investment Products: The firm provides a range of investment options, including stocks, bonds, CDs, life insurance, and long-term care insurance.
- Brokerage Accounts: Tiered brokerage accounts cater to various investment styles, offering flexibility for both self-directed and advisor-guided approaches.
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Fees and Pricing: Edward Jones centers its services around personalized financial advice, which may result in slightly higher fees compared to Fidelity Investments. Fees vary based on the chosen service and investment amount, encompassing charges for stock and ETF transactions, account transfers, and mutual funds.
Fidelity Investments:
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Wealth Management Approach: Fidelity Investments operates as a full-service wealth management company with a global reach. It aims to democratize investing, providing a mix of robo-investing tools, traditional investment products, and cash management services.
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Service Offerings:
- Robo-Advisory: Fidelity offers robo-investing through Fidelity Go, catering to investors looking for automated, low-cost solutions.
- Diverse Investment Products: Fidelity provides ETFs, crypto investing, managed accounts, retirement IRAs, mutual funds, options, and life insurance.
- Transparent Pricing: Fidelity is known for transparent pricing, with no account opening costs, zero fees for stock and options trading, and industry-leading zero expense ratio index mutual funds.
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Fees and Pricing: Fidelity's fee structure is transparent and competitive. While there are fees associated with robo-advisory and dedicated financial advisory services, they remain affordable for most investors. Fidelity Go, for instance, incurs no fees for investments under $25,000.
Conclusion:
- If you value a hands-on, personalized approach to wealth management and can accommodate slightly higher fees, Edward Jones might be suitable for you.
- Alternatively, if you are new to investing, prefer digital options, and are open to exploring robo-advisory services, Fidelity Investments provides a comprehensive yet cost-effective solution.
Before making a decision, it is crucial to assess your financial goals and preferences to align them with the strengths of each wealth management company.
