Fee-only means that a financial advisor is 100% compensated by clients. The term fee-based formerly referred to advisors who could be compensated by both commissions and fees. CFP® certificants who receive any form of compensation from third parties must refer to themselves as “commission-and-fee,” not fee-based. “Fee-based” is a term that is no longer allowed to be used by CFP® certificants, but many still do.
How is advice-only different from fee-only?
A fee-only advisor may manage a client’s investments. An advice-only advisor is a type of fee-only advisor who only gives advice and does not manage investments.