Thousands of investors have told us they are confused by the investment jargon that is used by financial advisors. We also know some terms, that investors don't understand, are used by advisors as sales ploys. They establish themselves as experts when they define a term you may not understand.
There is an alternative. We have defined more than 1,500 commonly used financial terms. Look-up a definition by entering the term in the search engine or using the alphabetical search service.
Definition of 'Financial advisor compensation'
Financial planners and advisors charge three types of fees for their knowledge, advice, and services: fixed fees, hourly fees, and asset-based fees (percent of assets). Sales representatives are paid commissions when they sell investment and insurance products. There are commissions that are deducted from assets and commissions that are paid by third parties who raise the fees they charge investors and add penalties for withdrawal to recover the commission payments.