Fee only?  Advice only?  Fee Based?

How Do I Choose a Financial Advisor in Canada?

There are plenty of options for financial advice, but which one is the best fit for you?

Let’s break down the different types of financial advisors in Canada, how they’re compensated, and how to find the right match for your financial needs and personality.

Types of Financial Advisors in Canada: Fee-Only, Advice-Only, Fee-Based, Commission-Based

In financial services, how an advisor is paid affects how they work, how they’re regulated, and what kind of guidance you receive.

But for many Canadians, these labels are confusing and that can make it difficult to know who to trust.

Advice-Only Advisors

Advice-only financial planners and advisors provide guidance without selling products or managing investments. They charge a transparent, flat fee for planning and strategy, making them fully independent from product providers.

Best for: DIY investors, incorporated professionals, and families seeking unbiased, strategic planning.

Fee-Only Advisors

Fee-only advisors are paid directly by their clients, through hourly rates, flat fees, or asset-based charges. Most avoid commissions, though some still offer products, which can blur the definition.

At one time, the terms fee-only and advice-only were often used interchangeably. Today, however, the landscape has shifted. Some fee-based or commission-based firms now offer a “fee-only” planning service within their broader practice. Under this structure, a financial plan may be created and billed directly to the client, but if the plan recommends a product such as insurance or an investment solution, the client is often referred to an affiliated professional within the same firm to complete the transaction.

While this approach can still provide value, it differs from the advice-only model. An advice-only financial planner does not sell any products, nor do they earn compensation from affiliated providers. Their sole role is to analyze, strategize, and provide recommendations that the client can choose to implement wherever they see fit. This clear separation helps reduce confusion in an industry where overlapping terminology can make it difficult for Canadians to know exactly what they are getting.

Best for: Investors who value objective advice and are primarily seeking investment management support.

Fee-Based Advisors

Fee-based advisors combine client fees (often a percentage of assets under management) with commissions from product providers. This hybrid structure means you may pay both a fee and indirectly through product costs.

Best for: Clients comfortable with some product-linked compensation, but who also want ongoing investment management.

Commission-Based Advisors

Commission-based advisors earn money by selling financial products such as mutual funds, segregated funds, or insurance. Clients don’t usually pay fees directly, but costs are built into the products.

Best for: Investors who want product implementation and prefer to pay indirectly.

Comparison: Types of Financial Advisors in Canada

Which Financial Advice Model Is Best?

No model is universally better. The key is understanding how each works and choosing the one that aligns with your goals.

I’ve worked in all these models during my 25 years as a financial planner in Halifax, Nova Scotia. Each has strengths and weaknesses. There are excellent, ethical advisors in every category.  Unfortunately, a few not-so-good ones too.

Why Financial Advisor Titles in Canada Are Confusing

• How can someone who sells insurance also call themselves “fee-only”?
• Can an advisor market themselves as “fee-based” if they receive sales bonuses?
• Why do so many titles sound clear but mean different things?

Loose terminology makes it difficult for Canadians to know what they’re really getting. That’s why clarity and transparency matter.

Why I Chose the Advice-Only Model

I proudly work with clients as an advice-only financial planner in Atlantic Canada. While I sometimes use the terms fee-only and advice-only interchangeably in conversation and marketing, my practice strictly follows the advice-only standard. I don’t sell products or earn commissions, nor do I receive referral fees or financial consideration from product providers. My sole compensation comes from the transparent fees paid by my clients, which allows me to focus entirely on planning and strategy without sales pressure.

If my approach isn’t the right fit, I maintain a strong referral network of trusted professionals across all models. This ensures clients can still find the right advisor for their needs, even if product implementation or a different structure is more appropriate.

FAQs: Financial Advisors in Canada

What is the difference between fee-only and advice-only financial planners?

Both fee-only and advice-only financial planners are paid directly by their clients rather than through product commissions.

The key difference is that a fee-only advisor may still work within a larger firm that sells financial products. In these cases, a client might pay a fee for a financial plan and then be referred to an affiliated professional “across the hall” to purchase recommended investments or insurance.

An advice-only advisor, by contrast, does not sell or arrange products at all. Their role is to provide planning and strategy for a transparent fee, leaving clients free to decide where and how to implement the recommendations. This separation ensures there are no hidden incentives beyond the fee the client pays.

Which type of financial advisor is cheapest?

Commission-based may seem less expensive upfront, but product fees are often hidden. Advice-only planners have transparent pricing, so you know exactly what you’re paying.

Is a commission-based advisor bad?

Not necessarily. Many are skilled and ethical. But because they’re paid by product providers, there may be a conflict of interest.

Where can I get financial planning help?

If you’re in Halifax or anywhere in Atlantic Canada and wondering what type of financial advisor best fits your needs, I’d be glad to help.

👉 Book a free consultation to talk through your goals and clarify your options.

Remember…

Starting a financial plan as a DIY investor doesn’t need to be complicated. Define your goals, budget, build an emergency fund, understand the basics of investing, and stay disciplined.

The most important step is starting now. The sooner you take control of your finances, the sooner you can reduce fees and build the wealth and security you want.

I help DIY investors in Atlantic Canada gain financial confidence. Contact me today to get started.

— David

P.S. If this post helped simplify your thinking, or reminded you of someone navigating a similar decision, feel free to share it.

David Martin is an Advice-Only Financial Planner in Halifax NS,  with 25 years of experience serving Atlantic Canada DIY investors and business owners.

I help DIY investors in Atlantic Canada gain financial confidence.  Contact me today to schedule a free consultation and start your journey towards financial independence.

Connect with David on LinkedIn.

Disclaimer: Our content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment and tax-related decisions. You should seek independent financial advice from a financial advisor near you.