Fee-Only Advisor

A fee-only advisor is a financial advisor compensated solely by fees paid by clients — such as a percentage of assets, a flat retainer, or hourly billing — and who accepts no commissions or third-party compensation for recommending products. The model is meant to reduce conflicts of interest, since the advisor isn't paid more for steering a client into a particular investment or insurance product.

Advisors and firms highlight fee-only status because it aligns with a fiduciary posture and is a common expectation among registered investment advisers (RIAs). It contrasts with commission-based and fee-based models, the latter mixing fees and commissions.

Clients and prospects care because compensation shapes incentives, so the label is a frequent screening criterion.

• Paid only by client fees — AUM, flat, or hourly
• Accepts no product commissions
• Distinct from "fee-based," which blends both

For fee-only practices, billing and fee calculation are core features to evaluate in financial advisor software; the vendor directory lists platforms that handle advisory-fee billing.