How do financial advisors make money ?

A financial advisor is a person who can help you with investments, real estate, insurance products, or loans. There earning method has been described in this post because it is important to know how financial advisors make money.

How do financial advisors make money

Ways for financial advisors to make money


The advisors who are mostly self employed will demand a fee only. They are good to have as they are the best for your own interests. They charge in three ways –

  1. Hourly Fee
  2. Flat Fee
  3. Retainer Fee

Salary plus bonuses

Some firms & banks pay big time to the advisors who bring in new clients substantially. They are paid bonuses along with their salaries to start with so that hey can work more on their abilities.

Commission & fees

Commission and fee advisors may receive a fee for developing a financial plan for you and then receive commissions when they sell you insurance and investment products recommended in your financial plan.

Commission only

Some advisors receive commissions only for selling their financial service products. These services can be related to all the fields that require advises.

Here was a small list of points about how financial advisors make money. Leave comments with your views.

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