Fixed income fees

Overview

These investment options include taxable fixed income securities (such as corporate bonds, both investment grade and non-investment grade, U.S. Treasuries, government agency bonds, government-sponsored enterprise bonds, mortgage-backed securities, certificates of deposit ("CDs", etc.) and municipal securities (bonds issued by states, cities, governmental entities, etc.)

Fees and expenses

Edward Jones may act as a principal in a bond transaction, which means we buy bonds and hold them in inventory for our clients to buy from us. When we act as principal, we receive a commission (also known as a markup/markdown) that is included in the price you pay for the bond. This commission typically ranges up to 2% for buy transactions and up to 0.75% for sell transactions. When we act as agent, we charge you a commission that is reflected on your trade confirmation. When we sell newly issued bonds, CDs and preferred securities during an initial public offering ("IPO") period, we receive a selling fee that is built into the initial offering price; we may also receive an underwriting fee and management fee. For general details about fixed income investments, see Important Information Regarding Your Accounts with Edward Jones.