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Before you sign anything

What does a financial advisor actually cost?

$2,500–$5,000+ for initial adviceReviewed August 2026

You pay the adviser directly. A genuinely independent adviser takes no commissions or asset-based fees — so the fee you pay is the whole story, with no product kickback quietly shaping the advice.

Financial advice is a professional service you pay for, and the cost varies with complexity. The more important question is how the adviser is paid: an independent, fee-for-service adviser charges you and only you, while others may receive commissions or a percentage of your assets. Knowing which you are dealing with tells you whose interests the advice really serves.

How they actually get paid

  • Upfront advice fee — you pay for a Statement of Advice (the written plan). Most of the initial cost sits here, and it should be agreed before any work starts.
  • Ongoing service fee — if you enter an ongoing arrangement, an annual fee for reviews and support. By law you must actively renew your consent to it each year.
  • Asset-based fees — a percentage of the money managed for you. Legal, but it grows with your balance regardless of extra work, and it is one of the things a genuinely independent adviser will not charge.
  • Commissions — banned on investment and super advice since 2013, but still permitted on life insurance. An adviser who takes them cannot legally call themselves independent.

The fee structures you'll be offered

Fixed / flat fee

A set dollar amount for the advice, agreed up front. The clearest structure — you know the cost before you commit, and it does not balloon as your balance grows.

Hourly

Charged for time spent. Useful for a one-off question; ask for an estimate so the total does not surprise you.

Ongoing service agreement

An annual fee for continuing reviews and advice. Reasonable if you want an ongoing relationship — confirm what you get for it, and remember you must renew consent yearly.

Asset-based fee

A percentage of assets under advice. Common, but it is calculated the same way a commission is, which is why independent advisers avoid it. If you are quoted one, ask what a flat fee would cost instead.

Walk away if you see this

  • An "independent" label alongside commissions or asset-based fees — under s923A, that word is not allowed if either applies.
  • No written Statement of Advice or Financial Services Guide. Both are required; the FSG sets out exactly how the adviser is paid.
  • A push to move your super or investments into an in-house or related product without a clear, documented reason.
  • An adviser you cannot find, with current authorisation, on the ASIC Financial Advisers Register.

Ask these before you sign

  • Are you independent under section 923A — no commissions, no asset-based fees, no product ownership links?
  • Exactly how are you paid, and will you put the total in writing before I commit?
  • What is the upfront advice fee, and is there an ongoing fee I would need to renew each year?
  • What is your adviser number, so I can check your authorisations on the ASIC register?

Where these figures come from

These are category benchmarks, not quotes. Individual fees vary — always get the total in writing before you engage anyone. Reviewed August 2026.

Now compare financial advisors — every one checked against a register.

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