A fee-based advisor is paid through a combination of fees (paid by you) and commissions (paid by the firm they represent).
Other ways advisors are paid include salary, sales fees or commissions, and fee-only.
When choosing an advisor, it’s important to work with someone that meets your service expectations and understands your financial circumstances and goals. These 8 questions to ask an advisor can provide you with a starting point when deciding if someone is the right advisor for you. You can ask them how they are paid, and what services you will receive in return. To learn more about the impact of fees on investing, visit InvestmentReporting.ca.