You Ask, We Answer: Do financial advisors charge?
17 Nov 2015 | COMMENTS: 0 | Author: Ryan Smith | we answer
Yes, financial advice will always have a charge attached to it.
Most FAs will offer you a free initial consultation. This is so they can see how they can help you, what your needs are and also let you know how much they’re going to charge.
If you’re offered completely free financial advice, be wary as this might be a con (you can check your FA’s credentials by seeing if they’re registered with the Financial Conduct Authority).
The reason FAs charge is because of their experience and expertise, but also because they’re registered to ensure you can get re-course if you happen to be mis-advised. Essentially, a large part of the charge is for your own protection.
Charges can be determined in many ways. Often it could be a one-off pre-agreed payment. If it is money management over time, the advisor may take a percentage of the money managed. If a situation is more complex a different pricing structure could be agreed.
It’s always important to know exactly how you’re going to be charge and what you’re going to be charged – this can be clarified in your free initial consultation.