Financial advisors’ fees range between 1 and 2% of assets under management. Financial accounts with greater assets under management, can be used to negotiate lower financial advisor fees.

Financial advisors charge fees for helping you manage your spending, savings and investments. However, financial advisors charge fees in the following ways:

• Financial advisors managing investments, charge a percentage of assets under management usually between 1% and 2% of the investment portfolio
• Financial advisors used for general advice charge an hourly fee between $100 and $400

An investment’s net performance must be examined after all fees have been deducted. The higher the fees applied, the greater the erosion of an investor’s returns is and hence the more difficult it is to generate profits.

Robo advisors is a cheaper alternative than financial advisors since they have much lower advisor fees typically in the range of 0.25%. Moreover, some robo advisors also provide human financial advisory services by charging an extra fee.

Mutual funds on the other hand embed their costs into what investors see as their net performance.

Lastly, hedge funds which is an investment vehicle not available to mainstream investors charge a management fee in the range of 2% and a performance fee typically of 20% on profits of the fund.