You must pay a fee if you wish to receive advice from them. Why would you pay a fee for what is essentially a financial product from someone who has very little experience? These commissions are generally paid to these professional financial advisors to promote the products and services they have to help you achieve financial independence. The money that is paid out by the commission is usually based upon the performance of the product. If you don't achieve anywhere near the objectives you set for yourself, you will not be asked to pay out your commission. However, should you achieve such success that you want to expand your business and become a bit more hands-on with your advising, you will be expected to pay your advisor a commission based upon your comprehensive service's increased sales and profits. A typical situation where someone would be asked to become a member of a fee-only financial advice scheme would be when they wish to become a financial adviser or investigate a matter for a client.
Some financial advisors offer all the financial services that are offered by a fee-only planner, but they also execute client transactions in the financial products recommended by them. They may therefore earn both a fee income for their advisory services and commissions and other incomes from the products that they recommend. Such advisors let their clients know that they earn commissions by executing the transactions for them; they also provide the client the option to execute their transactions with other service providers. They are known to serve best HNI trading tips to the HNI clients. Insti t utional advisers such as banks and brokers, have to keep separately identifiable division or department (SIDD) that offers financial advice, distinct from the pure execution services. Both business verticals need to operate independently and with complete transparency and disclosure to clients. Clients tend to choose their advisers to execute the transactions, when they trust the adviser to offer products suitable to them, for the convenience of having all the information about their wealth in one place.