Curious about what a career at Edward Jones might mean for your wallet? You're not alone! Many aspiring financial professionals and those considering a career change wonder about the earning potential at a firm like Edward Jones. It's a valid question, as compensation is a significant factor in any career decision. Unlike a fixed salary job, being a financial advisor at Edward Jones involves a dynamic compensation model that combines base pay, commissions, and various incentives. Let's break down how it all works, step by step.
Understanding the Edward Jones Financial Advisor Compensation Model
Edward Jones operates on a unique model that emphasizes entrepreneurial spirit within a structured framework. Their financial advisors typically run their own offices, building client relationships and managing assets. This means their income is directly tied to their performance and the growth of their client base.
Step 1: Embarking on Your Edward Jones Journey: The Training & Initial Compensation Phase
Are you ready to dive into the world of financial advising? The first step at Edward Jones, particularly for new financial advisors, involves a comprehensive training program designed to equip you with the necessary knowledge and licenses.
- Paid Training & Licensing: Edward Jones provides paid training while you study for essential securities industry exams like the SIE (Securities Industry Essentials), Series 7, and Series 66. This is a significant benefit, as these exams are challenging and require substantial study time. You'll receive hourly compensation on a bi-weekly basis during this onboarding period.
- Supplemental Salary (First Few Years): New financial advisors are eligible to receive a supplemental salary for up to five years. This salary provides a stable income stream as you build your practice and client base. It's not tied to performance, commissions, or assets brought into the firm initially, offering crucial support during the challenging initial years. This salary will adjust as your assets under management and commission levels grow.
- Firm-Provided Resources: As a new financial advisor, Edward Jones sets you up with a firm-provided office in a community you choose, a Branch Office Administrator (BOA) to help with daily operations, and access to a wealth of resources to support your practice building. This significant initial investment from the firm helps new advisors focus on client acquisition and growth.
Step 2: Building Your Practice: The Core of Your Earning Potential
Once you've completed your initial training and are licensed, your earning potential at Edward Jones largely revolves around building and serving your client base. This is where the commission and fee-based components of your compensation come into play.
- Commissions: A significant portion of an Edward Jones financial advisor's income comes from commissions generated through client transactions. This includes:
- Equity and Fixed Income Investments: When clients buy or sell stocks, bonds, and other fixed-income products, you earn a commission. The commission amount typically depends on the principal amount involved in the trade. For example, for equity trades, the commission percentage decreases as the principal amount increases.
- Mutual Funds, Unit Investment Trusts (UITs), Insurance, and Annuities: Financial advisors receive sales loads (sales charges), commissions, or concessions from the offering and sale of various managed investments. Edward Jones aims to reduce potential compensation differences by paying the financial advisor the same percentage amount of a client's purchase regardless of the actual sales charge for a specific mutual fund.
- Trail Commissions & 12b-1 Fees: For certain products, like mutual funds and variable annuities, financial advisors can receive ongoing trail commissions or a portion of 12b-1 fees. These are recurring payments based on the assets held by your clients in these products.
- Asset-Based Fees: As your practice grows and you manage more assets for clients, a substantial part of your income will come from asset-based fees.
- Advisory Programs: Edward Jones offers advisory programs like "Advisory Solutions" and "Guided Solutions" where clients pay an asset-based fee instead of commissions. These fees are typically based on the market value of all assets held in the account and are assessed monthly. Your payout level from these fees will depend on the average daily total asset value of advisory assets, taking into account any discounts.
- Percentage Payout: Generally, financial advisors receive between 36% and 40% of the revenue Edward Jones receives from asset-based fees, transactional revenue, ongoing 12b-1 fees, trail commissions, and revenue from premiums.
Financial advisors with less tenure might start at a lower payout level.
Step 3: Beyond the Basics: Bonuses, Profit Sharing, and Long-Term Incentives
Edward Jones offers additional avenues for financial advisors to boost their earnings and build long-term wealth.
- New Asset Compensation/Bonuses: You have the potential to maximize your earnings through qualifying new assets gathered, particularly during your first six years. These are bonuses tied to bringing in new client assets.
- Profit Sharing: Edward Jones has a profit-sharing plan, where contributions have historically averaged over 4% of an associate's total compensation (including bonuses). You are 100% vested in this plan from day one, contributing to your retirement security.
- 401(k) Match: The firm may match your pretax and Roth 401(k) contributions dollar for dollar up to $500 a year. When combined with profit sharing, the total contribution has averaged nearly 5% of a typical associate's salary over the past decade.
- Internal Incentive Programs: Edward Jones may offer internal incentive programs that provide financial advisors and branch office administrators with opportunities to earn additional compensation. These can include recognition and travel awards for top performers.
- Partnership Opportunity: A unique aspect of Edward Jones is the opportunity for successful financial advisors to become limited partners in the firm, offering a long-term stake in the company's success.
Factors Influencing Edward Jones Financial Advisor Earnings
While the compensation structure is clear, several factors significantly impact an individual financial advisor's actual earnings at Edward Jones:
- Years of Experience/Tenure: As mentioned, more experienced financial advisors typically have higher payout levels on commissions and fees. Their established client base also leads to greater asset under management.
- Client Base Size and Asset Under Management (AUM): This is perhaps the most critical factor. The more clients you serve and the more assets you manage for them, the higher your income potential, especially with asset-based fees.
- Product Mix: The types of investments and products your clients hold can influence your commissions and fees.
- Branch Location: While Edward Jones aims for consistency, local market conditions and client demographics can play a role in how quickly an advisor can build their practice.
- Effort and Performance: Ultimately, success as an Edward Jones financial advisor is largely performance-driven. Your dedication to client service, business development, and adherence to firm standards directly impacts your earning potential.
Average Earnings: What to Expect
It's important to remember that "average" salaries can be misleading due to the highly variable nature of financial advisor compensation. However, based on recent data:
- As of April 2025, the average annual pay for an Edward Jones Finance Advisor in the United States is around $100,000 per year. This translates to approximately $48.08 an hour, $1,923 per week, or $8,333 per month.
- For an Edward Jones Associate Financial Advisor (often a role for newer advisors), the average annual pay as of April 2025 is around $62,212 per year.
These figures represent a broad average and can vary significantly based on the factors discussed above. Top-performing advisors at Edward Jones can earn substantially more than the average, with no cap on earning potential.
10 Related FAQ Questions
How to become an Edward Jones financial advisor?
To become an Edward Jones financial advisor, you typically need a bachelor's degree (though equivalent work experience in financial services/sales can be considered), a track record of success, and the ability to pass industry licensing exams (SIE, Series 7, Series 66). Edward Jones provides comprehensive training and support for licensing.
How to succeed as a new financial advisor at Edward Jones?
Success as a new financial advisor at Edward Jones involves actively building a client base through networking, referrals, and community involvement, providing excellent client service, consistently developing your financial knowledge, and leveraging the firm's training and support resources.
How to get paid while studying for financial licenses at Edward Jones?
Edward Jones offers paid training during your onboarding period, allowing you to receive hourly compensation on a bi-weekly basis while you study for your securities industry exams (SIE, Series 7, Series 66).
How to understand the commission structure at Edward Jones?
Edward Jones financial advisors earn commissions on various transactions, including equity and fixed income trades, mutual funds, annuities, and insurance products. The specific commission percentage can vary based on the type and amount of the investment.
How to earn asset-based fees at Edward Jones?
Edward Jones financial advisors earn a portion of asset-based fees when clients enroll in advisory programs like "Advisory Solutions" or "Guided Solutions," where fees are charged as a percentage of the assets under management.
How to increase my earning potential as an Edward Jones financial advisor?
To increase your earning potential, focus on growing your client base, increasing the assets you manage, deepening client relationships, and continually enhancing your financial expertise and product knowledge.
How to benefit from profit sharing at Edward Jones?
Edward Jones has a profit-sharing plan for associates, where the firm contributes a percentage of their total compensation (including bonuses) to a retirement account. You are 100% vested from day one.
How to understand the training and support provided by Edward Jones for new advisors?
Edward Jones provides new financial advisors with paid training, a supplemental salary for up to five years, a firm-provided office, a Branch Office Administrator, and extensive resources and mentorship to help them build their practice.
How to get a branch office and administrative support at Edward Jones?
Edward Jones provides new financial advisors with a firm-provided branch office in a community of their choice and typically assigns a Branch Office Administrator to assist with daily operations and client service.
How to assess the long-term career growth at Edward Jones?
Edward Jones offers long-term career growth through the potential to become a limited partner in the firm, uncapped earning potential tied to practice growth, and continuous professional development opportunities, allowing advisors to build a significant, lasting business.
