Yes, you can switch from Edward Jones to Ameriprise, but whether you should depends on your account size, fee tolerance, service needs, and investment goals. Both firms operate as dual-registered broker-dealers and investment advisors under SEC oversight, meaning they follow different standards of conduct depending on which service you use.
The specific problem investors face stems from FINRA Rule 11870 and the Investment Advisers Act of 1940, which create complex transfer requirements and fee structures. When you switch between these firms, you trigger the Automated Customer Account Transfer Service (ACATS) process that typically takes three to six business days but can cost you $95 in Edward Jones exit fees. The immediate negative consequence is potential account disruption, missed market opportunities during transfer, and possible capital gains taxes if you hold proprietary investments that must be liquidated.
A striking statistic: Edward Jones manages $2.2 trillion in client assets across 9 million clients with over 20,000 advisors, while Ameriprise oversees $1.5 trillion in assets with 10,427 advisors, meaning Edward Jones advisors manage an average of $110 million each compared to Ameriprise advisors managing $144 million each.
What you will learn in this article:
💰 How fee structures at both firms differ and which account types save you money or cost you thousands more annually based on your portfolio size and trading activity
⚖️ The fiduciary duty gap that exists between brokerage and advisory accounts at both firms, and why Regulation Best Interest is not the same as true fiduciary protection
📋 Step-by-step account transfer process including FINRA rules, transfer timelines, hidden exit fees, and how to avoid triggering unnecessary capital gains taxes
🚫 Seven critical mistakes investors make when switching that result in lost funds, tax penalties, account lockouts, and forfeited fee waivers worth thousands of dollars
✅ Real-world scenarios showing exactly when switching makes financial sense versus when staying put saves you more money over five, ten, and twenty-year periods
Understanding How Both Firms Actually Make Money From Your Accounts
Edward Jones operates under a fee-based compensation model where financial advisors earn revenue through both commissions and asset-based fees. The firm offers three primary account structures: the Select Account (commission-based with charges ranging from 0.75% to 5.75% per transaction), the Guided Solutions Flex program (starting at 1.35% annually for the first $250,000), and Advisory Solutions (1.35% plus an additional 0.05% to 0.19% portfolio strategy fee). Edward Jones also receives revenue-sharing payments from mutual fund companies like American Funds, creating an additional layer of compensation not immediately visible to clients.
Ameriprise Financial uses a similar dual structure but with broader fee ranges. For ongoing financial planning services, Ameriprise charges a $500 annual fee plus $50 monthly ($1,100 total per year). Managed accounts carry asset-based fees ranging from 0.50% to 2.00% of assets under management, with specific programs having distinct minimums. The firm’s SPS Advantage Accounts require $25,000 minimums, while Select Separate Accounts demand between $100,000 and $500,000 to open.
Both firms profit from proprietary investment products. Edward Jones heavily promotes American Funds mutual funds and its own Bridge Builder Funds, available exclusively through Edward Jones advisory programs. Ameriprise owns Columbia Threadneedle Investments, giving the firm captive asset management revenue whenever clients invest in Columbia-branded mutual funds.
The hidden cost structure extends beyond stated fees. Edward Jones charges a $95 account transfer fee when you move your money elsewhere, plus $40 annually for each IRA account (reduced to $20 after your first account). Ameriprise imposes quarterly custodial fees of $25 ($100 annually) for brokerage accounts unless you maintain household assets exceeding $500,000 or qualify for elite status programs.
The Critical Fiduciary Duty Distinction You Must Understand
The question of whether Edward Jones or Ameriprise acts as a fiduciary depends entirely on which service you use. Both firms operate as dual-registered entities—functioning as both broker-dealers and registered investment advisors under SEC regulations. When providing investment advice through advisory programs, both firms must follow the fiduciary standard established by the Investment Advisers Act of 1940, requiring them to place your interests ahead of their own.
However, when these firms act as broker-dealers making product recommendations, they follow a lower standard called Regulation Best Interest (Reg BI), implemented by the SEC in June 2020. Reg BI requires broker-dealers to “act in the best interest of the retail customer at the time the recommendation is made,” but this standard does not carry the same ongoing duty of care and loyalty that true fiduciary advisors maintain throughout the entire client relationship.
The practical consequence of this dual standard creates confusion for investors. At Edward Jones, advisors at the brokerage level are not bound to the fiduciary standard unless they hold specific credentials like Certified Financial Planner (CFP) or Chartered Financial Analyst (CFA) designations. At the institutional plan level, Edward Jones explicitly states it serves as an investment advice fiduciary, but retail brokerage clients receive the lower Reg BI standard.
Ameriprise faces the same structure. The firm’s financial professionals are held to a fiduciary standard under the Advisers Act when providing recommendations under advisory programs or financial planning advice. When providing securities recommendations under Reg BI, they follow the best interest standard for broker-dealers. The critical difference is that fiduciary duty requires ongoing monitoring and care, while Reg BI only applies at the specific moment a recommendation is made.
How the Account Transfer Process Actually Works Under FINRA Rules
Transferring accounts between Edward Jones and Ameriprise follows specific procedures mandated by FINRA Rule 11870, which governs customer account transfers. The process begins when you complete a Transfer Initiation Form (TIF) with your new firm—in this case, Ameriprise. The receiving firm enters your information into the Automated Customer Account Transfer Service (ACATS), an electronic system operated by the National Securities Clearing Corporation.
Once Ameriprise submits your transfer request through ACATS, Edward Jones has exactly one business day to either validate the transfer or take exception to it. Valid exceptions include incorrect account numbers, mismatched Social Security numbers, or discrepancies in account ownership. After validation, Edward Jones must freeze your account to prevent new transactions and complete the asset transfer within three business days.
The transfer occurs “in-kind” whenever possible, meaning your investments move from Edward Jones to Ameriprise without being sold. This approach avoids triggering capital gains taxes on appreciated securities. Your cost basis information—the original purchase price of each investment used to calculate future gains or losses—transfers automatically as part of the ACATS process, though it may take additional days to appear in your new account statements.
Not all assets transfer through ACATS. Proprietary investments exclusive to Edward Jones, such as certain American Funds share classes or Bridge Builder Funds, must be sold before transfer. When Ameriprise cannot hold specific mutual funds, Edward Jones will liquidate these positions, creating a taxable event if held in non-retirement accounts. Cash proceeds from these sales transfer to Ameriprise, where you must reinvest the funds according to your new investment strategy.
Edward Jones imposes a $95 total transfer fee per account when you move money to another firm. This fee covers administrative costs associated with the transfer process. Some receiving firms, including certain large brokerages like Fidelity and Schwab, offer to reimburse this fee as a client acquisition incentive, though Ameriprise does not universally offer such reimbursements as standard practice.
Breaking Down the Real Cost Differences With Specific Examples
Consider three investor profiles to understand how fees compare between Edward Jones and Ameriprise across different scenarios.
Scenario 1: Small Portfolio, Buy-and-Hold Strategy
| Investor Profile | Annual Cost Breakdown |
|---|---|
| 35-year-old with $50,000 in a traditional IRA | Edward Jones Guided Solutions Flex: $675 (1.35% × $50,000) + $40 IRA fee = $715 total |
| Invests $5,000 annually | Fund expense ratios (American Funds average): 0.60% × $50,000 = $300 |
| Buy-and-hold investor (no trading) | Total Year 1: $1,015 |
| Same investor at Ameriprise | Client-directed advisory: $625 (1.25% × $50,000) + $75 IRA fee = $700 total |
| Fund expense ratios (Columbia Threadneedle average): 0.55% × $50,000 = $275 | |
| Total Year 1: $975 |
In this scenario, Ameriprise saves the investor approximately $40 annually. Over 30 years with compound growth, this small difference becomes significant.
Scenario 2: Mid-Size Portfolio, Active Management
| Investor Profile | Annual Cost Breakdown |
|---|---|
| 50-year-old with $250,000 taxable account | Edward Jones Advisory Solutions: $3,375 (1.35% × $250,000) + platform fee 0.05% ($125) = $3,500 |
| Seeks regular portfolio adjustments | Fund expenses: 0.60% × $250,000 = $1,500 |
| Total Year 1: $5,000 (2.00% effective fee) | |
| Same investor at Ameriprise | Manager-directed advisory: $3,750 (1.50% × $250,000, mid-range) |
| Financial planning: $1,100 annually ($500 + $50/month × 12) | |
| Fund expenses: 0.55% × $250,000 = $1,375 | |
| Total Year 1: $6,225 (2.49% effective fee) |
In this case, Edward Jones actually costs $1,225 less annually than Ameriprise when including mandatory financial planning fees.
Scenario 3: Large Portfolio, Sophisticated Needs
| Investor Profile | Annual Cost Breakdown |
|---|---|
| 60-year-old with $1,000,000 in advisory accounts | Edward Jones tiered fee structure: $3,375 (1.35% × $250,000) + $3,250 (1.30% × $250,000) + $6,000 (1.20% × $500,000) = $12,625 |
| Multiple account types (IRA, Roth, taxable) | Average fund expenses: 0.60% × $1,000,000 = $6,000 |
| Requires estate planning services | IRA fees: 3 accounts × $40 = $120 |
| Total Year 1: $18,745 (1.87% effective fee) | |
| Same investor at Ameriprise | Tiered advisory fee (0.50%-1.50% blended on $1M): approximately $11,000 |
| Financial planning package: $1,100 | |
| Fund expenses: 0.55% × $1,000,000 = $5,500 | |
| IRA fees: 3 accounts × $75 = $225 | |
| Total Year 1: $17,825 (1.78% effective fee) |
For high-net-worth investors, Ameriprise provides marginal savings of roughly $920 annually.
These scenarios demonstrate that neither firm universally offers lower costs. Your specific fee structure depends on account type, portfolio size, service level, and which investments you hold.
Investment Options and Proprietary Product Conflicts
Edward Jones maintains a curated list of approved mutual funds focused heavily on American Funds, a mutual fund family from which Edward Jones received $30 million in revenue sharing in recent years. The firm’s Investment Manager Research team evaluates portfolio managers using a proprietary process, resulting in a “short list” of recommended funds. This approach limits your investment universe compared to larger custodians offering thousands of fund options.
The firm recently launched its own proprietary SMA (separately managed account) focusing on large-cap U.S. stocks, requiring a $50,000 minimum investment. This SMA charges no additional management fee beyond the standard Edward Jones advisory fee of up to 1.35% plus 0.05% platform fee. The move into proprietary investments marks a departure from Edward Jones’ historical reliance on third-party fund managers.
Ameriprise offers broader investment access through its advisory solutions platform, including over 2,100 mutual funds from various fund families. However, the firm promotes its own Columbia Threadneedle Investments products, creating a similar conflict of interest. Ameriprise benefits from capturing both advisory fees and asset management fees when clients invest in Columbia funds, a practice known as “vertical integration.”
The firm’s recently launched Signature Wealth Program represents a flexible unified managed account (UMA) allowing advisors to combine multiple investment options into one portfolio. This platform provides access to hundreds of investment choices from leading providers, though advisors may still favor Columbia Threadneedle products due to internal incentives.
Both firms offer alternative investments for high-net-worth clients. Edward Jones provides access to private equity, private credit, and private real estate through its Edward Jones Generations program for clients with at least $10 million in assets. Ameriprise offers similar alternative investments through its Select Separate Accounts requiring minimums between $100,000 and $500,000.
Technology Platform Capabilities and Digital Tools Comparison
Edward Jones has historically lagged competitors in technology investment, focusing instead on personal relationships through its 15,000+ branch locations. The firm recently increased technology spending to enhance advisor capabilities and client experience. Advisors now access proprietary planning software and portfolio management tools, though client-facing digital capabilities remain less sophisticated than pure digital platforms.
Clients access their Edward Jones accounts through Online Access, the firm’s web portal allowing basic functions like viewing balances, transferring funds via ACH, and accessing statements. The platform lacks advanced features like robust goal-tracking tools, tax-loss harvesting automation, or sophisticated portfolio analysis available at robo-advisor platforms. Edward Jones deliberately maintains this simpler approach to drive clients toward personal advisor relationships rather than self-service tools.
Ameriprise invested heavily in its PracticeTech platform, powered by Thomson ONE for the brokerage side. This platform provides advisors with trading capabilities, investment research, money movement tools, and practice management features. The technology focuses primarily on advisor productivity rather than direct client self-service.
The Ameriprise app and secure site offer clients more comprehensive digital capabilities than Edward Jones. Clients can view consolidated accounts (including external accounts from other institutions), set alerts, access goal-tracking tools, electronically sign documents, use secure messaging with advisors, and store files in cloud storage. The platform includes Ameriprise’s Online Security Guarantee, promising to replace 100% of funds removed through unauthorized online activity when specific conditions are met.
Neither firm competes with Schwab, Fidelity, or Vanguard on technology sophistication. Both Ameriprise and Edward Jones position themselves as relationship-driven wealth managers where technology supports advisor interactions rather than replacing human guidance. If digital self-service tools, advanced portfolio analytics, or automated tax strategies rank among your priorities, both firms may disappoint compared to pure digital platforms.
Account Minimums and Service Tier Requirements
Edward Jones officially states “no firm-wide account minimum” for its Select Account brokerage option, though individual investments carry their own minimums. A certificate of deposit requires $1,000 minimum deposit, and many mutual funds impose $1,000 to $3,000 initial investment requirements. The Guided Solutions Flex program accepts accounts with less than $5,000 initial investment, making it accessible for beginning investors.
The firm’s Advisory Solutions program carries no explicitly stated minimum, though practical minimums exist. The tiered fee structure starting at 1.35% for the first $250,000 makes accounts under $10,000 to $25,000 economically unfeasible for most investors. Edward Jones financial advisors may decline accounts below certain thresholds based on their individual practice management decisions.
High-net-worth services require substantial assets. The Edward Jones UMA platform demands a $300,000 minimum investment, while the proprietary SMA requires $50,000. The Edward Jones Generations program serves only clients with $10 million or more in total assets, providing access to sophisticated estate planning, business succession strategies, and alternative investments.
Ameriprise Financial establishes varied minimums across programs. Client-directed advisory accounts require $2,000 per account with a $25,000 household minimum. Manager-directed programs demand between $5,000 and $500,000 per account depending on the specific investment strategy. Advisor-directed accounts need $2,000 per account but $100,000 household minimum to access full services.
Specific Ameriprise programs carry higher barriers. The SPS Advantage Account requires $25,000, while SPS Advisor Accounts need $100,000. Active Portfolios demand an initial $25,000 investment with a $15,000 maintenance minimum, though Active Growth Builder Portfolios reduce these to $5,000 initial and $4,000 maintenance. Select Separate Accounts—the firm’s premium offering—require between $100,000 and $500,000 to open.
For investors with smaller portfolios under $25,000, Edward Jones provides easier access to advisory services. Ameriprise’s household minimum requirements effectively exclude individuals who cannot aggregate substantial assets across multiple accounts. Investors with $100,000 to $500,000 find competitive options at both firms, while those with $1 million or more receive preferred pricing and enhanced service levels regardless of which firm they choose.
Common and Costly Mistakes Investors Make When Switching
Mistake 1: Failing to Review Your Current Advisory Agreement Before Transfer
Many investors initiate account transfers without reading their existing advisory contract terms, only to discover unexpected penalties or notice requirements. Some agreements require 30 to 90 days written notice before termination, and initiating a transfer without providing proper notice may trigger breach of contract claims. Advisory agreements may also contain provisions about minimum service periods or early termination fees beyond the standard $95 transfer charge.
The negative consequence is potential legal liability and delayed transfers. When you breach contract terms, the original firm may place holds on your account, refuse to process the transfer promptly, or pursue collections for unpaid fees. Always obtain and review your complete advisory agreement documentation before contacting a new firm.
Mistake 2: Triggering Unnecessary Capital Gains Taxes by Liquidating Proprietary Funds
Investors holding Edward Jones proprietary investments like Bridge Builder Funds or certain American Funds share classes must liquidate these positions during transfer, as Ameriprise cannot hold Edward Jones exclusive products. If these investments sit in taxable brokerage accounts and have appreciated significantly, the forced sale creates immediate capital gains tax liability.
The specific consequence varies by your capital gains rate. Long-term capital gains (assets held over one year) are taxed at 0%, 15%, or 20% depending on your income level, while short-term gains face ordinary income tax rates potentially reaching 37%. An investor with $100,000 in appreciated Edward Jones funds showing $30,000 in gains might owe $4,500 to $11,100 in federal taxes (15% to 37% of $30,000), plus state taxes.
Mistake 3: Transferring Retirement Accounts Without Understanding RMD Requirements
Investors over age 73 must take Required Minimum Distributions (RMDs) from traditional IRAs before initiating transfers. FINRA rules prohibit rolling over RMD amounts, so attempting to transfer your entire IRA balance when you have an outstanding RMD causes the transfer to fail or creates tax complications.
The consequence is a delayed transfer and potential IRS penalties. If you miss your RMD deadline due to transfer complications, the IRS imposes a 25% excise tax on the amount you should have withdrawn (reduced to 10% if corrected within two years). An investor with a $10,000 RMD who misses the deadline faces a $2,500 penalty plus ordinary income tax on the distribution when eventually taken.
Mistake 4: Assuming All Accounts Transfer at the Same Speed
ACATS transfers typically complete in six business days, but this timeline applies only to standard securities like stocks, bonds, and publicly traded mutual funds. Non-standard assets including annuities, limited partnerships, private placements, and certain alternative investments require manual processing taking weeks or months to complete.
The negative consequence is partial account transfer leaving you split between two firms. You may face confusion about which firm holds specific assets, duplicate account fees at both firms during the transition period, and difficulty implementing a unified investment strategy. Always request a complete asset list from your current firm and confirm with your new firm which assets transfer electronically versus manually.
Mistake 5: Initiating Transfer During High-Value Pending Transactions
Starting an account transfer while you have pending trades, deposits, or dividend payments creates processing complications. The carrying firm (Edward Jones) must freeze your account once the transfer begins, preventing new transactions from completing. Pending trades may be canceled, deposits may bounce back to their source, and dividend payments may be held in limbo.
The consequence is lost investment opportunities and potential financial disruption. If you initiated a $10,000 deposit to Edward Jones the day before starting a transfer to Ameriprise, that deposit may be rejected and returned to your bank account, delaying your investment by two to three weeks. During volatile markets, this timing mishap could result in missing favorable entry points or holding excess cash during market advances.
Mistake 6: Neglecting to Document Cost Basis Before Transfer
While cost basis information transfers automatically through ACATS, the data may take additional days or weeks to appear in your new account. Some investors sell securities immediately after transfer without waiting for complete cost basis information, then receive incorrect tax forms showing inflated gains.
The consequence is tax reporting nightmares and potential overpayment of taxes. If you sell $50,000 of stock immediately after transfer and the cost basis information arrives showing your original purchase price was $45,000 (not $0 as initially displayed), you must manually correct your tax return. Without proper documentation proving your cost basis, you might pay capital gains tax on the full $50,000 rather than just the $5,000 actual gain.
Mistake 7: Failing to Maintain Adequate Cash for Fee Payment
Both Edward Jones and Ameriprise deduct their advisory fees directly from your investment accounts. When you transfer to Ameriprise right before Edward Jones’ quarterly fee deduction date, you may have insufficient cash in your old account to cover the final fees. Edward Jones may then liquidate securities to satisfy the fee obligation.
The consequence is forced liquidation and potential tax liability. If Edward Jones needs to sell $500 of appreciated stock to cover your final quarterly fee, you incur capital gains tax on that $500 sale even though you intended to transfer the stock in-kind. Additionally, you face the $95 transfer fee, account closure fees, and potential partial share liquidation if Edward Jones cannot transfer fractional shares to Ameriprise.
Strategic Do’s and Don’ts for Account Transfers
Do’s for Successful Transfers
Do request and review the complete fee disclosure document from both Edward Jones and Ameriprise before making your decision. Federal regulations require both firms to provide Form ADV Part 2 (the brochure) detailing all fees, conflicts of interest, and services. Edward Jones’ brochure runs over 100 pages and reveals revenue-sharing arrangements not discussed during typical client meetings. Request the specific brochure for your exact program, as each advisory offering has separate disclosure documents.
Do initiate the transfer through your new firm (Ameriprise) rather than closing accounts at Edward Jones first. The receiving firm controls the transfer process and files the paperwork with FINRA. When you close accounts at Edward Jones before establishing new accounts at Ameriprise, you force a distribution (check sent to you), which starts the 60-day indirect rollover clock for retirement accounts and may trigger immediate tax withholding.
Do maintain duplicate records of all account statements, trade confirmations, and cost basis information for at least seven years after the transfer. While FINRA Rule 11870 requires both firms to preserve transaction records, disputes about cost basis, dividend reinvestment, or historical performance require your own documentation. Scan or photograph every statement before initiating the transfer, and request a comprehensive transaction history report covering your entire relationship with Edward Jones.
Do ask Ameriprise explicitly whether they reimburse the Edward Jones $95 transfer fee and any IRA custodial fees. Some receiving firms offer transfer fee reimbursement as a client acquisition incentive, though it may require maintaining a minimum balance for a specified period (typically $25,000 for six months). Fidelity and Schwab routinely reimburse transfer fees, but Ameriprise does not universally offer this benefit, so negotiate before committing to the transfer.
Do schedule the transfer to avoid quarterly fee deduction dates, dividend payment dates, and market volatility periods. Most advisory firms deduct fees quarterly in advance (January, April, July, October), so initiating transfers in February, May, August, or November avoids partial fee charges at both firms. Check your Edward Jones statement for the exact fee deduction date, and plan your transfer to complete at least two weeks afterward.
Don’ts That Sabotage Transfers
Don’t contact Edward Jones clients while still employed as an Edward Jones advisor or before officially terminating your relationship. If you work for Edward Jones and plan to transition to Ameriprise as an advisor bringing clients, understand that contacting clients before resignation violates the Broker Protocol agreement and most employment contracts. Firms routinely obtain injunctions preventing protocol violations and sue departing advisors for breach of contract, potentially costing hundreds of thousands in legal fees.
Don’t transfer retirement accounts via indirect rollover (check made payable to you) unless absolutely necessary. Indirect rollovers trigger mandatory 20% federal tax withholding, require you to replace the withheld amount from other funds within 60 days, and limit you to one indirect rollover per 12-month period across all IRAs. A $100,000 indirect rollover results in $20,000 withheld for taxes, forcing you to deposit $100,000 of your own money into the new Ameriprise IRA to avoid treating the $20,000 as a taxable distribution.
Don’t liquidate all positions before transfer in an attempt to “start fresh” at Ameriprise. Selling everything at Edward Jones creates immediate capital gains taxes in taxable accounts and eliminates the benefit of transferring appreciated securities in-kind. The only positions requiring sale are Edward Jones proprietary funds that Ameriprise cannot hold, so identify these specific investments and transfer everything else as-is.
Don’t ignore state-specific securities regulations beyond federal SEC and FINRA rules. Some states impose additional requirements on account transfers, particularly for large accounts or transfers involving annuities and insurance products. Washington State, for example, has sanctioned Edward Jones multiple times for supervisory failures involving undisclosed gifts and loans from clients to advisors, demonstrating state regulators’ active oversight independent of federal authorities.
Don’t sign any new agreements with Edward Jones after deciding to transfer to Ameriprise. Initiating a new account upgrade, agreeing to a program change, or signing updated advisory agreements may restart notice periods or trigger new minimum service requirements. One common trap involves Edward Jones advisors suggesting an account upgrade to Guided Solutions or Advisory Solutions right before a client transfers, potentially imposing new fees or contractual obligations that complicate the departure.
Comprehensive Pros and Cons of Each Firm
| Edward Jones Pros | Why This Matters |
|---|---|
| Local branch accessibility in 68% of U.S. counties | You can meet your advisor face-to-face in smaller communities where other major firms have no presence, providing personalized service for investors who prefer in-person relationships over digital platforms. |
| Lower initial investment minimums ($5,000 for Guided Solutions) | Beginning investors and those with smaller portfolios can access professional advisory services without meeting the $25,000 to $100,000 household minimums required by Ameriprise. |
| Simplified investment approach with curated fund selection | Decision paralysis decreases when choosing from a focused list of pre-vetted mutual funds, though this limits your options compared to platforms offering thousands of investments. |
| Strong performance in client satisfaction surveys | J.D. Power 2024 rankings place Edward Jones second among full-service firms with a 749 score, indicating clients generally feel satisfied with service quality and advisor relationships. |
| No mandatory financial planning fees for smaller accounts | You pay only advisory fees based on assets, unlike Ameriprise’s required $1,100 annual financial planning charge, saving money for investors who need basic investment management without comprehensive planning. |
| Edward Jones Cons | Why This Creates Problems |
|---|---|
| Higher fees for accounts under $500,000 | The 1.35% starting fee plus fund expenses creates effective total costs reaching 2% annually, significantly eroding long-term returns compared to low-cost index strategies charging under 0.50%. |
| Limited technology and digital tools | The basic online platform lacks sophisticated features like automated tax-loss harvesting, advanced goal tracking, and integrated financial planning software available at more tech-forward competitors. |
| Heavy reliance on American Funds creates conflict of interest | Edward Jones earned $30 million from American Funds revenue sharing, incentivizing recommendations that benefit the firm financially rather than necessarily serving your best interests as an investor. |
| Significant regulatory history with 288 BrokerCheck disclosures | The firm faces 136 regulatory actions and 150 arbitrations indicating patterns of supervisory failures, fee overcharges, and advisor misconduct that raise questions about internal compliance culture. |
| Proprietary fund liquidation required upon transfer | When you leave, Bridge Builder Funds and certain American Funds share classes must be sold, triggering capital gains taxes and eliminating your ability to maintain a consistent investment strategy. |
| Ameriprise Pros | Why This Matters |
|---|---|
| Broader investment universe with 2,100+ mutual fund choices | You access greater diversification opportunities across fund families and investment strategies, reducing concentration risk from relying on limited proprietary products. |
| Superior digital platform and mobile app capabilities | The Ameriprise app and secure site provide consolidated account views, goal tracking, electronic document signing, and secure messaging—modern conveniences that streamline account management. |
| Competitive fees for large portfolios over $1 million | Blended advisory fees drop toward 1.0% or lower for substantial accounts, providing meaningful savings compared to Edward Jones’ tiered structure on the same asset levels. |
| True fiduciary status for all advisory relationships | When you engage Ameriprise advisory services, the firm legally must act in your best interest under Investment Advisers Act fiduciary duty, providing stronger legal protections than broker-dealer suitability standards. |
| National recruitment of experienced advisor teams | Ameriprise attracts high-performing advisors from competitors by offering technology, independence, and support infrastructure, potentially giving you access to more sophisticated financial planning expertise. |
| Ameriprise Cons | Why This Creates Problems |
|---|---|
| High account minimums ($25,000 household minimum) | Investors with smaller portfolios face exclusion from advisory services, forcing them toward commission-based brokerage relationships or robo-advisor alternatives outside the personalized advisory model. |
| Mandatory $1,100 annual financial planning fee | Even if you only need basic investment management, Ameriprise requires the $500 annual fee plus $50 monthly charge for ongoing financial planning services in many programs, adding costs that smaller accounts cannot justify. |
| Complex and sometimes opaque fee structure | Multiple fee layers including advisory fees, platform fees, fund expenses, and transaction costs make it difficult to calculate your true all-in cost, reducing transparency compared to simpler pricing models. |
| Potential conflicts from Columbia Threadneedle ownership | Ameriprise profits from both advisory fees and asset management fees when directing your investments into proprietary Columbia Threadneedle funds, creating incentives to recommend these products regardless of whether they represent your optimal investment choice. |
| Lower scores for independent advisors in satisfaction surveys | J.D. Power 2024 rankings show Ameriprise scoring 641 in the independent advisor category (below the 661 average), suggesting some advisors feel less satisfied with firm support and direction compared to competitors. |
Real-World Scenarios: When Switching Makes Sense vs. When It Doesn’t
Scenario A: Young Professional with Growing Portfolio
Sarah, age 32, has $75,000 in an Edward Jones Guided Solutions Flex account paying 1.35% ($1,013 annually) plus 0.60% fund expenses ($450), totaling $1,463 per year. She contributes $10,000 annually, expects 7% average returns, and plans to invest for 30 years until retirement.
| Current Path at Edward Jones | Projected Outcome |
|---|---|
| Year 1 balance: $75,000 | After 30 years with 1.95% total fees and 7% gross returns (5.05% net): approximately $573,000 |
| Annual contributions: $10,000 | Total contributions: $375,000 (initial $75,000 + $300,000 over 30 years) |
| Total fees paid over 30 years | Approximately $152,000 in cumulative advisory and fund fees |
| Alternative Path at Ameriprise | Projected Outcome |
|---|---|
| Transfer $75,000 to Ameriprise client-directed account | 1.25% advisory fee + 0.55% fund expenses = 1.80% total annually |
| Same annual contributions and returns | After 30 years: approximately $593,000 (savings of $20,000) |
| Total fees paid over 30 years | Approximately $140,000 in cumulative fees ($12,000 less than Edward Jones) |
Recommendation: Sarah should consider switching to Ameriprise if she values digital tools and slightly lower fees, but the $20,000 difference over 30 years (3.4% of final balance) may not justify the disruption if she has a strong relationship with her Edward Jones advisor. The optimal choice is actually leaving both firms for a low-cost index fund approach charging under 0.30% total fees, which would grow her portfolio to approximately $715,000—$142,000 more than Edward Jones and $122,000 more than Ameriprise.
Scenario B: Pre-Retiree with Concentrated Portfolio
Michael, age 58, holds $650,000 at Edward Jones: $400,000 in American Funds mutual funds (tax-deferred IRA) and $250,000 in individual stocks (taxable account). His stocks show $120,000 in unrealized capital gains.
| Action | Consequence |
|---|---|
| Transfer IRA to Ameriprise via direct rollover | No tax implications; completed in 5-7 business days with all investments transferring in-kind |
| Transfer taxable account with stocks to Ameriprise | Cost basis transfers automatically; no capital gains triggered because stocks transfer without selling |
| Edward Jones liquidates American Funds positions | No tax consequence because funds are held in tax-deferred IRA; gains are not recognized until withdrawal in retirement |
| Total transfer time | 7-10 business days with proper coordination between firms |
Recommendation: Michael’s transfer makes sense only if Ameriprise provides meaningfully better financial planning for his approaching retirement. Both firms charge nearly identical fees on $650,000 portfolios (approximately 1.20% to 1.30% total), so the decision hinges on service quality, advisor expertise in retirement income planning, and whether Ameriprise offers specific strategies (tax-efficient withdrawal sequencing, Social Security optimization, Roth conversion analysis) that Edward Jones does not provide.
Scenario C: Retiree with Complex Estate Planning Needs
Patricia, age 72, inherited $450,000 from her spouse and holds it in an Edward Jones brokerage account. She has concerns about Edward Jones’ proprietary products and wants second opinions on estate planning strategies.
| Current Situation | Problem |
|---|---|
| $450,000 in American Funds A-shares purchased over 20 years | These shares carry front-end loads already paid but generate ongoing trailing commissions to Edward Jones of 0.25% annually ($1,125) in addition to her advisory fee |
| Edward Jones advisor suggests annuity for guaranteed income | Potential conflict: annuity commissions pay advisors 4% to 7% upfront ($18,000 to $31,500 on $450,000), creating incentive to recommend regardless of suitability |
| Patricia requires RMDs starting next year (age 73) | Edward Jones calculates and processes RMDs but charges $40 annual IRA fee while limiting withdrawal flexibility for estate planning strategies |
Recommendation: Patricia should obtain independent fee-only fiduciary advice before making any decision about transferring to Ameriprise. Both Edward Jones and Ameriprise operate under conflicts of interest regarding annuity sales and proprietary products. A fee-only advisor charging $2,500 to $5,000 for comprehensive estate planning review can identify whether the proposed annuity serves her interests, evaluate the Edward Jones fund selections, and recommend whether transferring to Ameriprise (or a different custodian entirely) makes sense based on her specific estate planning goals and beneficiary situation.
Understanding Key Regulatory Actions and Firm Track Records
Edward Jones faces ongoing regulatory scrutiny with 288 total disclosures on its FINRA BrokerCheck record, including 136 regulatory actions and 150 arbitrations. Recent notable sanctions include a $17 million settlement with 14 states in January 2025 for supervisory failures involving advisory fee structures when transitioning clients from brokerage to advisory accounts after the 2016 Department of Labor fiduciary rule.
In December 2024, FINRA sanctioned Edward Jones for failing to supervise mutual fund sales charge waivers from 2015 to 2020, resulting in clients paying $4.4 million in excess charges. The firm also received a $1.1 million fine in a separate action for failing to produce complete phone records during FINRA investigations into allegations of unauthorized trading, discretionary trading, and excessive trading.
State regulators have repeatedly cited the firm. Washington State imposed a $175,000 fine after alleging Edward Jones failed to supervise a financial advisor who received approximately $550,000 in payments, gifts, and loans from an elderly client without proper disclosure between 2017 and 2021. Massachusetts fined the firm $15,000 in June 2025 for excessive commissions while requiring restitution with interest.
Ameriprise Financial settled with the SEC in August 2024 as part of an industry-wide sweep involving 26 firms paying combined penalties exceeding $390 million for recordkeeping violations. The case involved off-channel communications where firm personnel used non-approved methods (personal phones, WhatsApp, text messages) to conduct business, violating federal securities laws requiring preservation of business communications.
Both firms received sanctions, though Ameriprise’s regulatory history shows fewer total actions than Edward Jones despite comparable size. Ameriprise holds an A+ BBB rating, and J.D. Power surveys indicate Ameriprise scores “Top Performer” ratings for explaining things in understandable terms and maintaining an unbiased approach that puts clients’ interests first.
The regulatory actions demonstrate that both firms, like most large financial institutions, face compliance challenges given their size and scope. Edward Jones’ pattern of supervisory failures and fee-related violations appears more extensive than Ameriprise’s violations, though both firms have paid millions in fines and restitution to settle regulatory claims without admitting wrongdoing.
Account Types and Special Situations Requiring Extra Attention
401(k) Rollovers to IRAs
When leaving an employer, you face choices about your 401(k) account: leave it with your former employer, move it to your new employer’s plan, or roll it to an IRA at Edward Jones, Ameriprise, or another custodian. Rolling to an IRA provides investment flexibility and consolidation benefits but eliminates certain protections.
Direct rollover is the preferred method where your 401(k) plan administrator issues a check payable directly to Edward Jones IRA FBO (for benefit of) your name or wires funds directly to your new IRA custodian. This method avoids mandatory 20% tax withholding and prevents the 60-day deadline complications of indirect rollovers. Both Edward Jones and Ameriprise process direct rollovers routinely, though completion takes two to four weeks depending on your former employer’s plan administrator responsiveness.
Employer stock special considerations: If your 401(k) holds highly appreciated company stock, rolling it to an IRA eliminates your ability to use the Net Unrealized Appreciation (NUA) strategy. NUA allows you to distribute company stock to a taxable brokerage account, pay ordinary income tax only on the original cost basis, and defer capital gains tax on appreciation until you eventually sell the shares (taxed at preferential capital gains rates). Once rolled to an IRA, all withdrawals face ordinary income tax rates potentially reaching 37%, eliminating this tax-saving opportunity.
529 Education Savings Plans
529 plans cannot transfer directly via ACATS from one brokerage to another. If you hold an Edward Jones 529 account, you must contact the underlying mutual fund company (often American Funds or another 529 plan sponsor) to initiate the transfer. The process requires completing specific 529 transfer forms from the receiving plan, and some state plans impose restrictions on incoming transfers or require the receiving plan to be within the same state program.
Tax complications arise if not handled properly. Direct 529 transfers between qualified plans are non-taxable when completed correctly, but indirect transfers where you receive a check payable to yourself trigger taxes and penalties unless recontributed within 60 days. Federal law limits 529 rollovers to once per 12-month period per beneficiary.
Roth IRA Conversions During Transfer
Some investors attempt to convert traditional IRA assets to Roth IRAs during the transfer process between Edward Jones and Ameriprise. This strategy requires careful sequencing to avoid complications. The preferred method is completing the transfer to Ameriprise first, then executing the Roth conversion within your new Ameriprise account after the transfer settles.
Attempting to convert from traditional to Roth while simultaneously transferring between firms creates processing nightmares. The conversion triggers immediate ordinary income tax liability on the entire converted amount, and tax reporting requires coordination between both firms to properly report the distribution from Edward Jones and the conversion contribution to Ameriprise. Mishandled conversions result in IRS notices, potential double taxation, and excess contribution penalties if annual limits are exceeded.
Trust Accounts and Estate Transfers
Investors holding accounts titled in trust names face additional complexity. Irrevocable trusts do not receive a step-up in basis at the grantor’s death, meaning all capital gains from the original purchase price remain embedded in trust assets. When transferring trust accounts from Edward Jones to Ameriprise, accurate cost basis tracking becomes critical for eventual taxation when beneficiaries receive distributions.
Estate transfers after an account holder’s death follow different rules than standard account transfers. The executor must provide death certificates, letters testamentary, and estate tax documentation before Edward Jones releases assets. Transfer-on-death (TOD) designations streamline this process by allowing assets to pass directly to named beneficiaries outside probate, though Edward Jones and Ameriprise both require beneficiaries to open new accounts in their own names to receive inherited assets.
Frequently Asked Questions
Can I transfer only some of my accounts from Edward Jones to Ameriprise?
Yes. ACATS supports partial transfers where you specify exact accounts or securities to move while leaving other accounts at Edward Jones, though this creates complexity managing relationships at both firms.
Does transferring my IRA from Edward Jones to Ameriprise count as a rollover contribution?
No. Direct trustee-to-trustee IRA transfers between custodians do not count as rollovers, avoid the once-per-year rollover limitation, and are not reportable as taxable distributions on Form 1099-R.
Will I lose my Edward Jones cost basis information when I transfer?
No. ACATS transfers include complete cost basis data for covered securities (those purchased after 2011), though the information may take additional days to appear in your new Ameriprise account statements.
Can I transfer an annuity from Edward Jones to Ameriprise without penalties?
No. Annuities require direct transfers between insurance companies following specific IRS rules for tax-deferred exchanges (1035 exchanges), with surrender charges potentially applying if within the contract’s early withdrawal period.
Do both Edward Jones and Ameriprise charge annual IRA custodial fees?
Yes. Edward Jones charges $40 per IRA account annually, while Ameriprise charges $75 per IRA annually, with fee waivers available under certain conditions like high household balances exceeding thresholds.
Will Ameriprise reimburse the $95 Edward Jones transfer fee?
Sometimes. Ameriprise does not universally reimburse transfer fees as standard practice, though individual advisors may negotiate reimbursement for large accounts or request approval for specific client situations based on relationship size.
Can I transfer my Edward Jones accounts to Ameriprise online without talking to anyone?
No. While you initiate the process through online forms at Ameriprise, federal anti-fraud regulations require identity verification typically involving conversations with representatives and notarized signatures on transfer authorization forms.
How long does a typical transfer from Edward Jones to Ameriprise take to complete?
Standard ACATS electronic transfers complete in five to seven business days, while manual transfers involving non-standard assets like certain mutual funds or partnerships may require two to six weeks.
Will my Edward Jones advisor contact me if I initiate a transfer to Ameriprise?
Yes. FINRA rules require Edward Jones to validate or reject the transfer within one business day, and many advisors contact clients upon receiving transfer notifications to confirm instructions and address concerns.
Do I pay capital gains taxes when transferring stocks from Edward Jones to Ameriprise?
No. In-kind transfers of securities between brokerages are not taxable events because no sale occurs; you only pay capital gains taxes when you eventually sell the securities at Ameriprise.
Can I transfer my Edward Jones account if I owe fees or have a debit balance?
No. Edward Jones will reject ACATS transfer requests if your account carries debit balances or unpaid fees, requiring you to deposit sufficient funds to bring the account current before processing proceeds.
Will my monthly dividend reinvestment continue during the account transfer?
No. Dividend reinvestment plans pause during transfers because Edward Jones freezes your account once the ACATS request is received, with dividends held as cash until the transfer completes and Ameriprise re-enrolls positions.
If I have automatic monthly deposits into my Edward Jones account, what happens during transfer?
Automatic deposits and withdrawals suspend once the transfer begins and must be reestablished at Ameriprise with new authorization forms after your accounts are fully transferred and operational at the receiving firm.
Does Ameriprise accept all the same mutual funds I currently hold at Edward Jones?
No. Ameriprise cannot hold Edward Jones proprietary Bridge Builder Funds or certain American Funds share classes exclusive to Edward Jones, requiring liquidation of these positions before or during the transfer process.
Can I change my mind and cancel a transfer after initiating it?
Yes. Contact Ameriprise immediately to cancel the transfer request before Edward Jones begins processing; once assets begin moving through ACATS, cancellation becomes difficult and may result in partial transfers requiring manual correction.
Related reading
- Are Edward Jones Fees High? (w/Examples) + FAQs
- Is Fidelity Actually Better Than Edward Jones? (w/Examples) + FAQs
- Should I Switch From Edward Jones to AdvisorShares? (w/Examples) + FAQs
- Should I Switch From Edward Jones to Fidelity? (w/Examples) + FAQs
- Should I Switch From Edward Jones to Merrill Lynch? (w/Examples) + FAQs
- Should I Switch From Edward Jones to J.P. Morgan? (w/Examples) + FAQs
- Are UBS Advisors Actually Better Than Fidelity? (w/Examples) + FAQs