How much does a financial advisor cost?
A breakdown of the common fee models — percentage of assets, flat fee, hourly, and commission — with typical ranges for each.
Financial advisor costs vary widely depending on the fee model, the size of your account, and the scope of services. Here's what's typical for each model.
Percentage of assets under management (AUM)
The most common model for ongoing investment management. Typical rates range from about 0.5% to 1.5% per year, often on a sliding scale that decreases as your assets grow. On a $500,000 portfolio at 1%, that's roughly $5,000 per year.
Flat or fixed fee
A set annual or one-time fee regardless of your asset size, often used for financial planning engagements. These commonly range from about $1,500 to $10,000+ depending on the complexity of your situation.
Hourly
Billed like an attorney or accountant, often in the $150–$400 per hour range, typically used for narrower, one-time planning questions rather than ongoing management.
Commission
Paid by the product provider (such as an insurance company or fund company) when you buy a product, rather than by you directly. This can create conflicts of interest since compensation is tied to what's sold — see our guide on fee-only vs. fee-based advisors.
What's not included
Advisory fees are usually separate from custodial fees, trading costs, and the expense ratios of any funds used — ask for the all-in cost, not just the advisory fee. Every firm's exact fee schedule is disclosed in its Form ADV Part 2A.
Frequently asked questions
What is a typical financial advisor fee?+
For ongoing investment management, roughly 0.5% to 1.5% of assets under management per year is typical, often decreasing as your account grows. Flat-fee planning engagements commonly range from about $1,500 to $10,000 depending on complexity, and hourly rates typically run $150–$400 per hour.
Are financial advisor fees tax deductible?+
Generally, no — for most individual taxpayers, miscellaneous itemized deductions including investment advisory fees were suspended by the 2017 Tax Cuts and Jobs Act through 2025. Rules can vary by account type and situation, so confirm your specific case with a qualified tax professional.
Put this into practice
Every firm profile on AdvisorGrade shows real, sourced fiduciary status, fees, and disclosure history from SEC filings — so you can check everything above in a couple of clicks.