There are three ways in which financial professionals are paid:
1. Fee-only
A fee-only financial professional is paid based on a fee that could be:
- a percentage of your assets under management
- a retainer/flat fee
- an hourly rate
2. Fee-based
Fee-based financial professionals charge a fee for assets under management and a commission for the products they sell.
3. Commission-based
A commission-based financial professional is paid commissions for the financial products that he sells.