Fee-Only Financial Planning VS. Fee Based and Commission Based: What’s the Difference?
Your financial advisor should be capable, experienced, and properly trained. Most importantly, they should be ethical and worthy of your trust. That’s an extremely hard qualification to identify with exactness, but an effective substitute is to make sure that your adviser’s incentives align with yours.
So, as you look for a financial advisor, you should first investigate how they receive compensation for their services. There are three primary methods of compensation in finance: commission-based, fee-based, and fee-only.