Ramsey, NJ (Jan. 20, 2016)
When dealing with financial advisors, consumers are frequently under-informed about the type of advice they may get. Typically, Advisors fall into two different roles: Brokers who receive a commission for products sold to their clients, and Investment Advisors who receive a fee for their services. The distinction could impact far more than the initial cost.
Investment Advisors who are compensated via fee are held to a fiduciary standard and are required by law to act in the overall best interest of their clients. Brokers are typically paid by commission and are held to a different standard, requiring only that the products they recommend be suitable.