Excessive commissions charged by brokerage firms such as Edward Jones have become a growing concern for retail investors. A recent multistate investigation uncovered that over a five-year period, several firms collected roughly $19 million in excessive fees across more than one million trades—most of them involving small-dollar equity transactions. These practices can quietly erode investor returns and highlight serious issues in how brokerage firms charge their clients.
If you or someone you know has suffered significant investment losses working with Edward Jones or another brokerage firm, don’t hesitate to reach out to Meyer Wilson Werning today. Our attorneys are experienced in securities fraud cases and will help to guide you through the process with a free consultation to determine whether your losses are the result of actionable misconduct.


How Brokerage Firms Inflate Commission Charges
Some brokerage firms use pricing structures that impose steep minimum commissions, even when the transaction amount is relatively small. This results in commissions that are significantly higher than industry norms for those types of trades.
Key findings from the investigation include:
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Minimum commission thresholds: Some firms charged flat fees of $25 to $95 per trade, regardless of trade size.
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Outsized fees on small trades: These minimums often exceeded 5% of the total value of smaller trades.
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Edward Jones’s role: Of the $19 million in excessive commissions uncovered, Edward Jones accounted for more than $11 million.
These pricing practices have triggered scrutiny about whether firms like Edward Jones are prioritizing investor fairness—or simply their own profits.
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How These Fees Affect Investors
Excessive commissions can have serious financial consequences, particularly for investors who make frequent or small-dollar trades. Many retail investors aren’t fully aware of how these commissions are structured, making them vulnerable to hidden costs that diminish their investment returns.
Here’s how these practices can impact everyday investors:
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Unexpected fees: High commissions on smaller trades can eat into gains—or turn them into losses.
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Lack of transparency: Investors may not be told upfront about these minimum charges.
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Erosion of trust: When fees are higher than expected, it raises concerns about whether a financial advisor is truly acting in the client’s best interest.
Edward Jones’s significant share of these overcharges raises questions about whether clients were misled or inadequately informed.
What Legal Options Do Investors Have?
If you’ve suffered losses due to excessive commissions, you may be able to recover those losses through legal action. Possible claims may include:
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Negligence
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Breach of contract
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Violations of consumer protection laws
These claims can often be pursued through arbitration or litigation, depending on the specific circumstances of your case.
To prepare for a potential case, investors should:
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Collect detailed brokerage account statements
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Document any communications or fee disclosures from their financial advisor
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Consult with a legal team experienced in securities law to evaluate their claims
Our lawyers are nationwide leaders in investment fraud cases.
How Meyer Wilson Can Help
This issue of excessive commission charges across a number of law firms shows how brokerage firms can take advantage of the trust placed in them by retail investors. These fees not only reduce your earnings—they reflect a broader problem of firms putting profits ahead of clients.
If you or someone you know has been a victim of losses through Edward Jones or another brokerage firm, contact our team at Meyer Wilson Werning today. With over 20 years of experience and $350 million in recovered losses for our clients, we are well-versed in handling cases such as these.
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Frequently Asked Questions


What are excessive commissions in the context of brokerage firms?
Excessive commissions occur when brokers charge fees that are disproportionately high compared to the value of the transaction—often through minimum charges that hurt investors making small trades.
How do excessive commissions impact retail investors?
They reduce overall returns by eating into profits or compounding losses, especially for investors making low-dollar equity transactions where fixed minimum fees take a bigger bite.
Which brokerage firms were investigated for excessive commissions?
A multistate investigation, led by NASAA, found that several firms—including Edward Jones—charged unreasonably high commissions, totaling nearly $19 million across one million trades.
Can investors recover losses from excessive commissions?
Yes. Investors may have legal claims such as negligence or breach of contract and can pursue recovery through arbitration or litigation, depending on the circumstances.
How can I tell if I’ve been overcharged?
Review your trade confirmations and monthly statements for high per-trade commission fees, especially if you made small transactions. A securities lawyer can help assess whether charges were excessive and go through your statements with you.
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