While the exact dollar amount of fees will vary by individual, financial advisors tend to charge either through an hourly rate or based on the performance of the advisee's portfolio; this means that some financial advisors will charge more if their advice proves successful, while others charge the same amount no matter how successful their advice is. Some financial advisors may charge a flat fee for their services, and others still may earn commission based on what financial products the advisee buys. A flat fee of $1,000 is a not uncommon fee structure for financial advisors, according to Forbes.
Investors who are concerned about being sold ineffective financial products typically choose to avoid financial advisors who work on commission. Though it is legal for financial advisors to work on commission, there is something of an ethical conflict when it comes to an advisor being able to profit from the sale of a specific product; this theoretically means that these advisors are more likely to recommend products that may not be effective but will be lucrative for them. Fee-only financial advisors do not get paid on commission and instead focus on earning their waves through hourly fees or by working on a retainer charged to the advisee at the start of the professional relationship, as reported by Investopedia.