← All comparisons

Fee-only advisor vs. Commission-based advisor

How an advisor is paid shapes every recommendation they make. The clearest divide is between fee-only advisors, who are paid only by their clients, and commission-based advisors, who are paid by the products they sell. Here's how the two compare.

Fee-only advisorCommission-based advisor
How they're paidOnly by you — a transparent, agreed-upon feeBy product companies, through commissions
Legal standardFiduciary — your best interest, alwaysOften a lower 'suitability' or best-interest-at-sale bar
Conflicts of interestMinimal by designBuilt into the compensation
Product incentivesNone — no product pays them moreSome products pay the advisor more than others
Fee transparencyDisclosed in writing upfrontOften embedded inside the product

When this makes sense

Fee-only advisor

A fee-only advisor is the right fit when you want advice with the fewest built-in conflicts — someone whose only incentive is the quality of the advice, not the products attached to it. It's the model most appropriate for coordinated, long-term planning.

When this makes sense

Commission-based advisor

A commission-based arrangement can make sense for a one-time, product-specific transaction — buying a particular insurance policy, for example — where you understand the commission and don't need ongoing, conflict-free advice.

The bottom line

Up Capital Management is fee-only. We're paid only by our clients, never by product companies, so our interests and yours point the same direction.

See how we’re paid

Common questions

Is fee-only the same as fee-based?

No. Fee-only advisors are paid only by clients. Fee-based advisors can earn both client fees and product commissions — which reintroduces the conflicts fee-only is designed to remove.

Is a fee-only advisor always a fiduciary?

Registered Investment Advisers are held to a fiduciary standard by law. Fee-only structure and fiduciary duty typically go together, which is why the combination is considered the gold standard for advice.

Still not sure?

Answer three quick questions and get an honest read on whether we're the right fit.

See if you're a fit