What Raymond James does and who uses it

Raymond James Financial is a brokerage firm that lets you buy and sell stocks, bonds, mutual funds, and other investments through a broker or financial advisor. The company operates through two main channels: Raymond James & Associates (which serves individual investors and small businesses through financial advisors) and Raymond James Financial Services (which serves independent financial advisors who want to use Raymond James's infrastructure). You can also trade through their self-directed online platform if you prefer to make your own investment decisions without an advisor.

Raymond James is a publicly traded company headquartered in St. Petersburg, Florida, and has been operating since 1962. It is a member of the Financial Industry Regulatory Authority (FINRA) and the Securities Investor Protection Corporation (SIPC), which means customer accounts are protected under SIPC rules up to $500,000 per account (including a $250,000 limit on cash balances). The firm serves individual investors, retirement accounts, trusts, and business clients.

Key Takeaways

  • Raymond James operates as a full-service brokerage through advisors and as a self-directed online platform, so your experience depends on which service you choose.
  • If you work with a Raymond James advisor, you will pay advisory fees (typically a percentage of assets under management) rather than per-trade commissions on most investments.
  • Self-directed traders on the online platform pay no commission on stocks and ETFs but may pay fees for mutual funds, bonds, and other products depending on the specific investment.
  • Raymond James accounts are SIPC-protected up to $500,000 per account, with a $250,000 limit on uninvested cash.
  • The firm offers retirement accounts (IRAs, SEP-IRAs, Solo 401(k)s), taxable brokerage accounts, and custodial accounts for minors.

How fees work at Raymond James

Raymond James charges fees in different ways depending on how you invest. If you work with a financial advisor through Raymond James & Associates, you typically pay an advisory fee based on a percentage of the assets they manage for you. This percentage varies but commonly ranges from 0.5% to 1.5% annually, depending on your account size and the services included. This is called an assets under management (AUM) fee structure, and it replaces per-trade commissions on most investments.

If you trade through Raymond James's self-directed online platform, you pay no commission on stocks and ETFs. However, you may encounter fees on mutual funds (some charge transaction fees, others do not), bonds (typically marked up by the firm), and other products. The specific fees depend on what you buy. Raymond James also charges account maintenance fees in some cases, though many accounts have these fees waived if you maintain a minimum balance or set up automatic deposits.

Before opening an account, ask Raymond James for a complete fee schedule. The firm is required to disclose all costs in writing, and you should understand the total cost of ownership before you invest.

Types of accounts Raymond James offers

Raymond James lets you open several types of accounts depending on your situation. A taxable brokerage account has no contribution limits and no restrictions on when you can withdraw money, but you pay taxes on dividends and capital gains each year. A Traditional IRA lets you contribute up to $7,000 per year (or $8,000 if you are 50 or older as of 2024), and contributions may be tax-deductible depending on your income and whether you have access to an employer retirement plan. Withdrawals before age 59½ typically trigger a 10% penalty plus income tax, except in specific situations.

A Roth IRA also has a $7,000 annual contribution limit (or $8,000 at age 50+), but contributions are made with after-tax dollars and may have access to withdrawals are tax-free. You can withdraw contributions (not earnings) at any time without penalty. A SEP-IRA is designed for self-employed people and small business owners and allows much higher contributions—up to 25% of net self-employment income, with a maximum of $69,000 per year (2024). A Solo 401(k) is another option for self-employed individuals and offers even higher contribution limits if you have employees.

Raymond James also offers custodial accounts for minors (UGMA and UTMA accounts), trust accounts, and business accounts for partnerships and corporations. Each account type has different tax treatment and withdrawal rules, so choose based on your situation and timeline.

How to open an account and fund it

To open an account at Raymond James, you can contact a financial advisor directly, visit a local branch, or go online to their website to start a self-directed account. You will need to provide personal information (name, address, Social Security number, employment status), answer questions about your investment experience and financial situation, and sign account agreements. The firm conducts background checks and verifies your identity as part of the account opening process.

Once your account is open, you can fund it by transferring money from a bank account, transferring investments from another brokerage, or depositing a check. Bank transfers typically take 1 to 3 business days. If you are moving investments from another firm, Raymond James can help coordinate the transfer—this is called an ACAT transfer (Automated Customer Account Transfer) and usually takes 5 to 10 business days. You can also roll over money from a 401(k) or other retirement plan into a Raymond James IRA, though the process varies depending on whether your old plan allows direct rollovers.

What you can buy through Raymond James

Raymond James lets you buy stocks, ETFs, mutual funds, bonds, options, and other securities. If you use a financial advisor, they will recommend investments based on your goals and risk tolerance. If you trade through the self-directed platform, you can research and choose investments yourself using the firm's tools and research.

The platform includes stock screeners, market data, educational resources, and charting tools. You can set up automatic investments (called automatic investment plans) to buy a fixed dollar amount of a security on a regular schedule. Raymond James also offers fractional shares on stocks and ETFs through their self-directed platform, which means you can invest a specific dollar amount rather than buying whole shares only.

How withdrawals and transfers work

Withdrawals from a taxable brokerage account can be made at any time without penalty. You straightforward sell the investments you want to liquidate and request the cash be transferred to your bank account. The transfer typically takes 1 to 3 business days after the sale settles (which is usually 2 business days after you sell).

Withdrawals from retirement accounts follow different rules. From a Traditional IRA, withdrawals before age 59½ are subject to income tax plus a 10% early withdrawal penalty, with some exceptions (first-time home purchase up to $10,000 lifetime, education expenses, disability, and a few others). At age 59½, you can withdraw without penalty, but you owe income tax on the full amount. Starting at age 73, you must take required minimum distributions (RMDs) each year based on your age and account balance.

From a Roth IRA, you can withdraw contributions at any time tax-free and penalty-free. Earnings can be withdrawn tax-free and penalty-free only if the account has been open for at least 5 years and you are age 59½ or older (with some exceptions). If you need to move money to another brokerage, Raymond James can process an ACAT transfer or a direct rollover, depending on the account type.

How Raymond James compares to other brokerages

Raymond James differs from discount brokerages like Fidelity, Charles Schwab, and E*TRADE mainly in its advisor-focused model. If you want a full-service experience with a dedicated advisor, Raymond James's fee structure (typically 0.5% to 1.5% of assets under management) is competitive with other advisory firms. However, if you prefer to trade on your own, the self-directed platform charges no stock or ETF commissions, which matches competitors, but you may pay more on mutual funds and bonds depending on the specific products.

Raymond James also emphasizes personalized service and local branch access, which appeals to investors who want face-to-face meetings. Discount brokerages typically offer lower overall costs for self-directed traders but less personal guidance. The choice depends on whether you value advisor support enough to pay for it, or whether you prefer to manage investments independently at lower cost.

Frequently Asked Questions

Can I move my investments out of Raymond James if I change my mind?

Yes. You can transfer your account to another brokerage using an ACAT transfer, which is free and usually takes 5 to 10 business days. You can also sell your investments and withdraw the cash, though this may trigger capital gains taxes if you are in a taxable account. Contact Raymond James to start the transfer process.

What happens to my money if Raymond James goes out of business?

Your account is protected by SIPC insurance up to $500,000 per account (with a $250,000 limit on uninvested cash). This means if the firm fails, your investments and cash are returned to you. SIPC does not protect against investment losses—only against the firm's failure to return your assets.

Do I have to use a financial advisor, or can I trade on my own?

You can do either. Raymond James offers a self-directed online platform where you make all investment decisions yourself, or you can work with a financial advisor who manages your account for a fee. Some investors use both—a managed account with an advisor plus a separate self-directed account for individual stock picks.

Can I open a Raymond James account if I am self-employed?

Yes. Raymond James offers SEP-IRAs and Solo 401(k)s designed for self-employed people and small business owners. These accounts allow much higher annual contributions than regular IRAs. A financial advisor at Raymond James can help you choose which account type fits your situation.

What is the minimum amount needed to open an account?

Minimum account sizes vary depending on the account type and whether you work with an advisor. Self-directed accounts typically have no minimum, but advisor-managed accounts may require $25,000 or more. Contact Raymond James directly to confirm the current minimums for the account you want to open.