--- title: What You Should Know About Advisor Fees description: Learn about the different fee structures for financial advisors and planners. Understand the pros and cons of commission-based and fee-based advisors to make the best decision for your financial goals. image: https://amgwealthadvisors.com/hubfs/Imported_Blog_Media/Advisor-Fees.png --- [![Logo](https://amgwealthadvisors.com/hubfs/AMG-Logo-Primary-Vertical-Texas-Oak.svg)](https://amgwealthadvisors.com/) - About Us - [Our Team](https://amgwealthadvisors.com/our-team) - [Why Choose Us](https://amgwealthadvisors.com/why-choose-us) - [Our Services](https://amgwealthadvisors.com/services) - [Asset Management](https://amgwealthadvisors.com/services/asset-management) - [Business Succession Planning](https://amgwealthadvisors.com/services/business-succession-planning) - [Estate Planning](https://amgwealthadvisors.com/services/estate-planning) - [Financial Transition Planning](https://amgwealthadvisors.com/services/financial-transition-planning) - [Retirement Planning](https://amgwealthadvisors.com/services/retirement-planning) - [Tax Planning](https://amgwealthadvisors.com/services/tax-planning) - 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In return for their expertise and guidance, some advisors will charge a flat fee, while others work on commission. Some may even do both. But how are those fees determined and who pays for them? Whether you’re already working with an advisor or just starting to explore your options, make sure you understand their fee structures so that you can be sure that you’re getting the best fit for your needs. This overview can help you start that conversation. ## Commission-based financial advisors Financial advisors working on commission tend to be brokers compensated based on product sales. While they receive payment when you make an investment on their recommendation, typically their commissions are not drawn from your investment. They’re usually paid out by the investment product sponsor. In most cases, the advisor will receive an initial disbursement when the investment contract is signed and an additional annuity for every year that contract remains active. Some financial products — life insurance, for example — are only sold on commission. As a result, commission-based advisors are effective representatives for certain products. They are held to a suitability standard, meaning product recommendations must be suitable to a client’s needs but may be more expensive than other options. Brokers are incentivized to offer more expensive options to increase their commission. As a result, the commission introduces the possibility of a conflict of interest in the advice these advisors provide. ## Fee-based financial advisors Some financial advisors will charge a set fee for their services. These fees may take the form of an hourly rate, a project fee, or a percentage of assets under management they handle on your behalf. Additionally, some advisors may operate strictly on a single fee structure, while others may combine them. For instance, your advisor may begin working with a flat fee and then continue working on a percentage of the assets they manage. In most cases, fee-based financial advisors are fiduciaries, which means they are legally required to act in their client’s interest, building plans and choosing products that are ideally suited to your needs. By law, they must recommend products and services to you that best meet your requirements rather than those that might provide them a commission. ## Dual-registered advisors In some cases, fiduciaries may be dual-registered, meaning they are registered as both fiduciaries and brokers. This means they can act as fiduciaries when creating your financial plan and also draw a commission when putting the plan into action. In such cases, the advisor may offer clients a roster of “preferred” financial products within their role as fiduciary and collect commissions if and when clients invest in them. That said, if there are cheaper options that offer the same benefits as a fiduciary, an advisor must present them as an option. If you’d like to understand our fee structure, let’s have an open conversation so you can better understand the services we offer and how we charge for them. It’s important to us that you feel confident and informed about our working relationship, and we’re happy to provide you with any information you need to make the best decisions for your financial future. Share: Wealth Management Can Be A Challenge. Learn How We Can Help. [Let's Get Started](https://amgwealthadvisors.com/contact) #### Disclosures All Investment Advisory Services are provided by Waterloo Capital d/b/a AMG Wealth Advisors, an SEC Registered Investment Adviser. Registration with the SEC does not imply a certain level of skill or expertise. AMG Wealth Advisors is not affiliated with Waterloo Capital. Additional information about Waterloo Capital d/b/a AMG Wealth Advisors, is available in its current disclosure documents, Form ADV Part 1A, Form ADV Part 2A Brochure, and Client Relationship Summary, which are accessible online via the SEC’s investment Adviser Public Disclosure (IAPD) database at www.adviserinfo.sec.gov. Waterloo Capital does not offer or provide legal or tax advice. Please consult your attorney and/or tax advisor for such services. The content is developed from sources believed to be providing accurate information. The information in this material is not intended as tax or legal advice. Please consult legal or tax professionals for specific information regarding your individual situation. The opinions expressed and material provided are for general information and should not be considered a solicitation for the purchase or sale of any security. Please remember that different types of investments involve varying degrees of risk, and there can be no assurance that the future performance of any specific investment or investment strategy will be profitable or equal any historical performance level. Hyperlinks are provided as a courtesy and should not be deemed as an endorsement. When you link to a third-party website you are leaving our site and assume total responsibility for your use or activity on the third-party sites. ![AMG Wealth Advisors](https://amgwealthadvisors.com/hubfs/MG%20(1)-1.png) T: 512.647.1500 TF: 800.266.1723 1221 South Mopac Expressway, Suite 240 Austin, Texas 78746 [![linkedin](https://amgwealthadvisors.com/hubfs/ln.png)](https://www.linkedin.com/company/amg-wealth-advisors/) [![Instagram](https://amgwealthadvisors.com/hubfs/Instagram%20(1).png)](https://www.instagram.com/amgwealthadvisors/) All Investment Advisory Services are provided by Waterloo Capital d/b/a AMG Wealth Advisors, an SEC Registered Investment Adviser. Registration with the SEC does not imply a certain level of skill or expertise. AMG Wealth Advisors is not affiliated with Waterloo Capital. Additional information about Waterloo Capital d/b/a AMG Wealth Advisors, is available in its current disclosure documents, Form ADV Part 1A, Form ADV Part 2A Brochure, and Client Relationship Summary, which are accessible online via the SEC’s investment Adviser Public Disclosure (IAPD) database at www.adviserinfo.sec.gov. Waterloo Capital does not offer or provide legal or tax advice. Please consult your attorney and/or tax advisor for such services. The content is developed from sources believed to be providing accurate information. The information in this material is not intended as tax or legal advice. Please consult legal or tax professionals for specific information regarding your individual situation. The opinions expressed and material provided are for general information and should not be considered a solicitation for the purchase or sale of any security. Please remember that different types of investments involve varying degrees of risk, and there can be no assurance that the future performance of any specific investment or investment strategy will be profitable or equal any historical performance level. Hyperlinks are provided as a courtesy and should not be deemed as an endorsement. 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