How Do Financial Advisors Make Money in Canada? | RightFit Advisors (2024)

FAQs

How Do Financial Advisors Make Money in Canada? | RightFit Advisors? ›

Many advisors now adopt a fee-only structure, charging clients for their time and expertise rather than earning commissions from product sales. Fee-only advisors charge a fixed fee for their services, regardless of the financial products recommended.

The majority of financial advisors are commission-based. These advisors get compensated by selling products like mutual funds, stocks, GICs and insurance products. There are often two key concerns with commission-based advice.

Some financial planners and advisors are paid on a retainer or hourly basis. Most fee-only advisors will charge clients based on a percentage of the assets they manage for you. Fees can vary, but they generally average somewhere around 1% of the total value of the investments being managed.

Commission payouts start at 9-10% and increase up to 27-30% during your first four years as a financial advisor, based on certain criteria and tenure as a financial advisor. We anticipate financial advisors will increase their commission payout approximately every 12-18 months.

Find out what the average Financial Planner salary is

The average financial planner salary in Canada is $80,580 per year or $41.32 per hour. Entry-level positions start at $64,350 per year, while most experienced workers make up to $161,386 per year.

Guidance and support to instill good savings and investing habits and help you avoid common investing pitfalls. Other services beyond managing your investments, such as estate and tax planning.

Job duties

Advise clients on implementing the financial plan to help them achieve their goals. May also arrange for the purchase and sale of financial products and investments depending on the licence held, and monitor the portfolio to ensure its quality and profitability.

Of high-net-worth individuals, 70 percent work with a financial advisor. You can compare that to just 37 percent in the general population.

The highest salaries for financial planners are in Connecticut, Maine, Rhode Island, New York and New Jersey.

“If this is the case, the investment portfolio needs to take the operating business into consideration when decisions are being made for the investment portfolio.” Harding says billionaires seek advisors with whom they have a strong alignment and no conflicts of interest.

Are financial advisors in demand in Canada? ›

Financial Advisors are in high demand across Canada's popular Financial and Accounting departments.

The estimated total pay range for a Financial Advisor at Edward Jones is $130K–$240K per year, which includes base salary and additional pay. The average Financial Advisor base salary at Edward Jones is $86K per year.

The terms “financial advisor” and “financial planner” are often used interchangeably. Whichever you end up using, you'll want someone who can help you create a detailed plan, one that makes sense for your needs and goals.

Even if you're like me and are confident in your own research abilities, getting a second opinion on optimizing your financial options can be well worth it. Of course, it's only worth it if you are actually getting advice from a good financial advisor!

Most financial advisors charge based on how much money they manage for you. That fee can range from 0.25% to 1% per year. Some financial advisors charge a flat hourly or annual fee instead. Tax Specialist | Personal finance reporter for 16+ years, including work for the Wall Street Journal and MarketWatch.

The average salary for Wealth Advisor is $80,588 per year in the Canada.