How much do financial advisors charge?
The amount of money you can expect to pay for financial advice depends entirely on which payment structure the advisor you are working with adheres to.
Hourly fees typically range from $120 to $300 per hour, according to 2025 data.
Some financial advisors charge a flat rate for their services, with fixed or flat fees ranging from $1,000 to $3,000 or more. The exact cost will depend on your financial situation and the services needed.
For advisors that charge an AUM percentage, they are generally around 0.5%-2% of a client’s total asset value. However, the greater the asset’s value, the lower the fee tends to be. The average is approximately 1%.
Commission-based financial advisor fees tend to have the broadest range, with advisors charging between 1% and 10% of the product or service they provide.
How do I find out how much an advisor charges?
Determining the fees charged by financial advisors is rarely as straightforward as checking their website, sending an email to inquire, or calling their office to ask.
The important thing to remember is that financial advisor fees differ and vary widely, as every client’s needs and goals are unique. That means the level of service and work involved differs, too.
While some firms offer transparent standardized fee structures that can be accessed via their website, in many cases, you will need to meet with a financial advisor for a consultation to determine their rates based on your specific needs.
What are the different types of financial advisor fees?
There are several different fee structures to consider.
Four of the most popular are hourly fees, commissions, fixed fees, and fees calculated based on a percentage of assets.
Hourly fees
Hourly fees are billed per hour of active service provision. For example, an advisor may charge $200 per hour for their services.
Commissions
Some financial advisors earn a percentage-based income from commissions on specific products, packages, or mutual funds they offer. For every service sold to a client, the advisor receives a percentage as a commission.
Fixed fees
Many financial advisors prefer a once-off, upfront payment in exchange for specific service packages or offerings. For example, an advisor may charge you $1,000 to create a budget, no more, no less.
Percentage of assets, or AUM rates
The AUM fee structure entails a financial advisor charging clients a percentage of their total asset value, typically around 1%.
Robo-advisors vs. human advisors: How do the fees compare?
Robo-advisors often tout lower fees than human advisors, primarily because of their automated, streamlined approach to investment management.
Accordingly, robo-advisors typically charge a percentage of assets under management, ranging from 0.20% to 0.30% annually.
In contrast, human advisors may charge a similar percentage-based fee on AUM (around 1% to 2% annually). They may also offer alternative fee structures, such as hourly or flat-fee rates for specific services.
However, it's essential to consider the value proposition.
Human advisors offer personalized guidance, expertise, and a comprehensive suite of services that potentially justify their higher fees for those seeking a holistic financial approach.
As such, you should look beyond only the fees to get a sense of the value being offered.
There can be benefits to working with a human, as many people who received financial advice have a clearer understanding of their money goals, more confidence in retirement planning, and experience lower financial stress.
"It can be daunting paying for financial advice, but it should add more value than it costs – and benefit you in the long term.
For example, optimising your pension strategy so you have a fund with lower fees and a track record of strong performance could pay dividends when you retire, although there are no guarantees.
There are other benefits as many people who received financial advice have a clearer understanding of their money goals, more confidence in retirement planning and experience lower financial stress, according to research by Unbiased.”
Is it worth hiring a financial advisor?
Hiring a financial advisor offers numerous short- and long-term benefits. But again, you’ll want to weigh up the pros and cons.
It may be worthwhile to hire a financial advisor when you're navigating complex financial decisions, such as retirement planning, investment strategies, or tax optimization. They should be able to save you time, provide expert guidance, and ensure you make the best possible decisions.
Working with a financial advisor may also help you become better educated about financial management, empowering you to make informed decisions in the future. That’s something a robo-advisor may not be able to do.
Additionally, financial advisors can provide you with peace of mind by offering a structured, long-term plan for financial security.
How can financial advice save you money?
A recent study by the World Economic Forum found that access to financial advisory services helps the average US household save up to 7.5% of its annual income.
While upfront financial advisor costs can be high, the ROI on the services clients receive in exchange is also high.
Further, receiving professional financial advice reduces the risk of costly errors. It can also help people maximize contributions to their retirement funds, invest in profitable exchange-traded securities, and avoid high-interest debt.
Can I get free financial advice?
Yes, there are instances where you can find free financial advice. However, in many cases, you get what you pay for.
Any free advice you receive is likely to be basic, impersonalized, and of limited value. It is also unlikely to be tailored to your needs, as it will be more generic and may not apply to your specific situation.
Financial advisor fees are charged because the services offered in this industry are specialized and require significant skill and experience to develop.
How do I choose a financial advisor?
Fees are only one of the many factors that you’ll need to consider when choosing a financial advisor.
It is also useful to check an advisor’s credentials, ask about their experience, and prepare some questions in advance about their professional values and practices.
You can also inquire about communication methods and working relationship styles to get a clearer picture of what you will get in exchange for those financial advisor fees.
Ultimately, it’ll come down to your preferences and the person you’re most comfortable with. It may also take some searching to find them.
Get expert financial advice
Financial advisor costs are as varied as the services this industry offers. There are four main types of financial advisor fees: hourly, commission, fixed, and percentage-based, each with its own structures and clauses.
To find a trusted SEC-regulated financial advisor that offers services in alignment with your budgetary and individual needs, let Unbiased match you with an expert in their field.