This day and age, you see an increasing number of advisors who are Fee-Only, but there are still many in practice thatare not. Obvious reasons come to mind why the other advisors still choose the other methods of compensation. The main reason is to maximize advisor compensation. A client of a commission-based advisor typically ends up paying a lot more than a client of a Fee-Only advisor.
Majority of the advisors that work for big brokerage firms, such as Merrill Lynch and Goldman Sachs have little control over the investment management services they provide for the client. These big firms have service guidelines the advisors must abide by. Advisors also have to follow the company’s fee schedules. Brokers at the big brokerage firms usually are NOT Fee-Only.
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