fee-based (fēʹ bāsed), adj. 1. the basis for payment of services rendered is an agreed upon fee rather than a commission.

Types of fees for service:

•   Management Fee:
    Usually 1.5% of the value of the investments being managed
•   The Management Fee pays for the following personalized services: 
•     Custom investment recommendations
•      Monitoring of the investments
•      Monthly statements and individualized quarterly analyses
•      Consultations and phone visits as needed
•      Flat Fee:  A fee agreed upon in advance for a defined service
•      Hourly Fee:  An hourly charge for each hour of work or consultation

Comparison of Fee-based service to commission-based service:

The advisor is compensated for valuable, individualized advice and service whether or not the client buys or sells an investment product. This helps the advisor remain objective.

YOU benefit from a fee-based adviser because:

Commission-based service is product focused.