Smart401k Blog

  • Commission vs. Fee Based Advisors

    This biggest difference is that an advisor paid solely on commission is receiving a portion of the proceeds from selling you a product. This means they only make money if they make trades/investments on your behalf (unfortunately this means the more trades they make the more revenue they generate for themselves). A fee based advisor on the other hand, is someone who gets paid on a flat hourly rate or other fixed rate schedule. They don't make money off what they sell you but rather by keeping you as a long term client (by keeping you happy).
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