Commission-based financial advisors usually advertise their services as free, but are paid a commission based on products they sell you including investments and insurance policies. Fee-based financial advisors will charge fees while also earning commissions on the products they recommend to you.
How do fee-based financial advisors make money?
Fee-based financial advisors earn money through a combination of fees and commissions. They generally will charge a percentage of the assets they manage for you in addition to earning commissions on products they recommend to you like certain investment choices, annuities or life insurance.
What is a fee-based financial advisor?
A fee-based financial advisor is not paid in the same way as a fee-only advisor. While a fee-based financial advisor also charges fees to their clients, they can also generate additional income through commission on the financial products they recommend. They may also charge a performance-based fee.
