# Fee-based financial advisor

> A fee-based financial advisor charges client fees and can also earn commissions on products they sell, so fee-based is not the same as fee-only.

Canonical page: https://find.wellspent.co/glossary/fee-based/
Also called: hybrid advisor

Fee-based advisors are often dual registered: an investment adviser representative (charging advisory fees) and a registered representative of a broker-dealer (earning commissions). They may charge a fee for a plan and also be paid when a client buys an annuity or insurance policy.

Nothing about the model is improper, but it creates a potential conflict of interest that fee-only advisors avoid. The similar names cause real confusion, so it is worth asking directly: "Do you or your firm receive any compensation from anyone other than me?"

## How to check

Search the advisor on FINRA BrokerCheck. A current broker (registered representative) registration means they can earn commissions.

## Sources

- [FINRA BrokerCheck](https://brokercheck.finra.org/)
- [SEC Investment Adviser Public Disclosure](https://adviserinfo.sec.gov/)

## Related terms

- [Fee-only financial advisor](https://find.wellspent.co/glossary/fee-only.md)
- [Commission-based advisor](https://find.wellspent.co/glossary/commission-based.md)
- [Investment adviser representative (IAR)](https://find.wellspent.co/glossary/iar.md)