Investing in the stock market and in other financial instruments is one of the best ways to put your money to good use. You will be able to accumulate wealth, which is useful for you and our family’s future. To make good financial decisions, make sure to get fee based financial advice from experts.
Here are things you need to know about this service:
What is a fee-based service?
When you get a fee-based financial service, you are paying for the adviser’s service depending on your asset’s market value. In this case, you and your adviser will agree upon a payment system, including how payments will be computed, schedules of charging and what accounts will be managed. This way, you are involved in the creation of clauses and terms of your agreement.
Fee-Based vs Commission-Based
It is easy to get confused which of the two will be more beneficial for you in the long run. Whilst fee-based services are paid based on an agreed-upon fee, commission-based ones are paid based on each item of service your counsellor did for you. Your adviser will charge you for every transaction you do with them. This includes consultations, buying, selling and managing your account.
Your Adviser is On Your Side
Your asset’s market value is a big factor in the calculation of fees. This means that the higher its value is, the higher you will be paying your counsellor for the good service you received. Similarly, if the value goes down, the fee will go down as well. Because of this, your adviser will be motivated to take the best steps to improve your investment.
It Provides Transparency
Remember that you agree upon a fixed method of calculating the fees. You will be able to know for yourself how much you will be paying for the next payment schedule. Monitoring your expenditure with regards to your investment is always a wise move. In addition, this fosters trust between you and your adviser.
Get in touch with Pyrmont Wealth Management to know more about fee based financial advice. Find out more here!