How are financial advisors paid?

There are three main models: commission-based (paid when you buy products), fee-only (paid only by you), and fee-based (paid by you and able to earn commissions too). Always ask which model applies before you hire someone.

How much does a financial advisor cost?

It varies by service. A common model is roughly 1% of the assets managed per year, but advisors may also charge flat fees or hourly rates or a combination. A good advisor will share their fees in writing.

How Financial Advisors Are Paid

June 10, 2026

Overview

How an advisor is paid shapes the advice they give, so it is worth understanding before you hire one. This section explains the three payment models — fee-only, fee-based, and commission — and what financial advice typically costs.

In this section

How to use this section

Read how advisors get paid first to learn the difference between fee-only, fee-based, and commission models, then see how much an advisor costs for typical dollar and percentage ranges.

Frequently Asked Questions

How are financial advisors paid?: There are three main models: commission-based (paid when you buy products), fee-only (paid only by you), and fee-based (paid by you and able to earn commissions too). Always ask which model applies before you hire someone.
How much does a financial advisor cost?: It varies by service. A common model is roughly 1% of the assets managed per year, but advisors may also charge flat fees or hourly rates or a combination. A good advisor will share their fees in writing.