What is Fee-Only, or maybe—what isn’t Fee-Only?
Fee-only advisors are paid directly by the client, in such a way that the client understands the cost of the advisor’s service. CPAs and lawyers generally work this way. Fee-based advisors may receive a fee for investment management for example, but could also receive commissions and other compensation that the client isn’t informed about. Employees of brokers-dealers, or those affiliated with broker-dealers, may receive only commissions or some other commission/fee arrangement.
