Fees can vary depending on what type of products you are buying and what kinds of services the adviser is providing. Advisers are usually paid by salary, commission, a flat fee, or a combination of these methods. If an adviser is paid by salary, the cost of their advice is built into the products you buy. Many advisers are paid a commission for every product they sell. Others charge a flat fee based on an hourly rate or a percentage of the value of your account. Commissions and other incentives may influence an adviser to recommend one investment over another. Make sure you understand how your adviser is paid and think about how this may impact the advice they give you. Before you invest, be sure to understand how the fees and other costs will affect your returns and ask about other investments that may be suitable for you at a lower cost.
Make sure you also understand what fees you have to pay to buy, hold and sell the investment, and how this affects your returns. It’s important to understand how much the investment has to increase in value in order for you to break even or make money after all the fees are paid and what happens if it decreases in value.