Many financial advisers offer an initial meeting free of charge. This isn’t designed to give you specific advice about your situation. It’s a chance to see how they work, how much they charge and to get a sense of whether you feel comfortable with them.
A financial adviser’s fees vary depending on several factors, including what they are charging you for and how you pay.
Some advisers offer different ways that you can pay for advice.
If there’s a particular option you prefer, ask the adviser as they might be happy to negotiate. These include:
- An hourly rate — this will vary from £75 an hour to £350, although the UK average rate is about £150 an hour.
- A set fee for a piece of work — this might be several hundred or several thousand pounds. This will be dictated largely by the complexity of the work and the time it takes (i.e. a pension transfer will cost more in advice fees than simply arranging an ISA).
- A monthly fee — this might be a flat fee or a percentage of the money you want to invest.
- An ongoing fee — an adviser can only charge you an ongoing fee in return for providing an ongoing service, unless you’re paying off an initial charge over time through a regular payment product.
Advisers will often use more than one type of charge. For example, there might be a fixed set-up fee and then an ongoing charge based on percentage of assets. It’s also important to remember that the advice fees won't include the cost of the underlying investments. Many advice firms also use services such as investment platforms, the costs of which are sometimes passed onto the customer.