To compare financial adviser charges accurately, ask each firm to quote for the same scope, convert percentages into pounds and combine adviser, platform, product, fund and investment-management costs. Compare both the first year and later years.
Quick answer
Create a one-page comparison for each firm: initial adviser fee, ongoing adviser fee, service deliverables, other annual charges, minimums and tiers, payment method, cancellation terms and a five-year illustration. Do not compare headline percentages alone.
Key points
- Use the same facts and requested service for every quote.
- Separate initial and ongoing charges.
- Convert every percentage into pounds.
- Include minimums, caps and tiered bands.
- Add all non-adviser costs.
- Check whether implementation and reviews are included.
- Model more than one asset-value scenario.
- Compare cancellation and switching terms.
Prepare the same brief for each adviser
Provide a concise summary of the issue, approximate assets, relevant pensions or investments, timescale and desired service. Ask firms to identify assumptions before quoting.
A quote based on retirement planning for five pensions cannot be compared with a quote for a simple investment recommendation. Consistency is the foundation of a fair comparison.
Tell the firm whether implementation and ongoing support are wanted. If unsure, ask for separate options.
Compare the service before the price
List the deliverables. Does the fee cover fact-finding, cash-flow modelling, a written recommendation, provider research, implementation and follow-up?
For ongoing service, list review frequency, portfolio work, planning updates, tax-year support, adviser access and reporting.
Identify exclusions. One firm may exclude existing defined-benefit pensions, trusts, business assets or legal coordination.
A lower quote for less work is not necessarily cheaper on a like-for-like basis.
Convert percentages into pounds
Calculate each percentage using the same asset value. A 0.6% fee on £400,000 is £2,400. A 0.8% fee is £3,200.
Ask which assets are included and whether cash or non-advised holdings count. Confirm the valuation date and how often the fee is recalculated.
For percentage initial fees, test whether the amount applies to assets advised on, transferred or newly invested.
The FCA expects client-specific adviser charges to be disclosed in cash terms. Keep the written illustration.
Separate first-year and later-year costs
The first year may include an initial advice fee plus an ongoing fee. Later years normally contain recurring adviser and product charges.
Example:
- Initial adviser fee: £3,000
- Ongoing adviser fee: £1,800
- Platform: £600
- Funds: £1,200
- Total first year: £6,600
- Total later year at unchanged values: £3,600
This presentation is clearer than combining everything into one percentage.
Add platform, product and investment costs
Ask for platform fees, fund ongoing charges, transaction costs, product administration and discretionary-management fees.
Some costs are estimates because trading and asset values change. Mark estimates rather than omitting them.
Compare the complete proposed solution. A lower adviser fee can be offset by a higher-cost investment service.
Existing products may also have charges or guarantees. Include exit costs and lost benefits when considering a transfer.
Check minimums, tiers and caps
Record the minimum fee and test whether it overrides the percentage. A £2,000 minimum on £50,000 is an effective 4% even if the stated rate is 1%.
For tiered charging, ask for the full calculation at your asset value. Confirm whether each rate applies only to its band.
A cap can limit the cash cost, but check whether it applies to all services or only one component.
Create a five-year cost illustration
A simple illustration can use current asset values, but a better comparison tests stable, higher and lower values. Percentage charges change with the portfolio.
Do not imply that the asset-growth assumption is guaranteed. The purpose is to understand fee sensitivity.
Include expected one-off review costs in the alternative. Comparing an ongoing service with “no future advice ever” may be unrealistic.
For a precise projection, use the firm’s disclosure and ask it to explain assumptions.
| Comparison field | Firm A | Firm B |
|---|---|---|
| Initial adviser fee | Enter pounds | Enter pounds |
| Ongoing adviser fee | Enter pounds and % | Enter pounds and % |
| Platform and product costs | Enter annual amount | Enter annual amount |
| Investment-management costs | Enter annual amount | Enter annual amount |
| Review frequency | Describe | Describe |
| Implementation included? | Yes/no/details | Yes/no/details |
| Five-year adviser cost | Calculate | Calculate |
| Cancellation terms | Record | Record |
Compare competence and service quality
Cost is one factor. Check FCA status, permissions, independent or restricted service, relevant qualifications and experience.
Assess communication. The adviser should explain charges and limitations without pressure or evasiveness.
Ask how recommendations are reviewed, who performs the work and what happens if the named adviser leaves.
A transparent firm should welcome like-for-like comparison.
Compare cancellation and switching terms
Record notice periods, final charges and the process for stopping provider deductions. Ask which non-adviser charges continue.
Check whether a new adviser would need fresh initial work and whether assets must move. Changing adviser does not automatically require changing products.
Understand any exit costs or loss of product features before proceeding.
Copyable adviser-fee comparison checklist
- Firm legal name and FCA reference
- Advice area and scope
- Independent or restricted status
- Initial fee in pounds
- Implementation fee
- Ongoing fee in pounds and percentage
- Minimum, tier and cap
- Platform charge
- Fund and transaction costs
- Investment-management charge
- VAT or other expenses
- First-year total
- Expected later-year total
- Five-year illustration
- Review deliverables
- Cancellation method
- Costs that continue after cancellation
Common comparison errors
Consumers often compare a percentage with a fixed fee without converting both to pounds. They may also forget that one quote includes implementation while another does not.
Another error is comparing only current-year cost. A low initial fee can lead into a high recurring service, while a higher initial fixed fee may have no continuing adviser charge.
Finally, do not treat investment-performance claims as a guaranteed offset to cost. Compare the service on suitability, risk, planning and transparent delivery.
Frequently asked questions
How many adviser quotes should I get?
There is no required number. Comparing two or three suitable firms can reveal differences in scope, cost and service.
Should I compare fees before meeting the adviser?
A published schedule is useful, but a client-specific quotation normally requires enough information to define the work.
How do I compare a fixed fee with a percentage?
Convert the percentage into pounds at current and alternative asset values, then compare the same service period.
Should I include fund charges?
Yes. Include all expected platform, fund, product, transaction and investment-management costs.
What is a five-year cost illustration?
It separates initial and recurring charges over five years using stated asset assumptions. It is an illustration, not a prediction.
Can I ask an adviser to match another quote?
You can ask, but scope and competence matter more than price matching. The firm may not alter its pricing.
Worked comparison: two different quotations
Firm A quotes a £2,500 fixed initial fee and 0.8% ongoing advice. Its recommended platform and funds cost an estimated 0.55% a year. On £300,000, the first-year total is £2,500 plus £2,400 plus £1,650, or £6,550.
Firm B quotes a 1.5% initial fee and a 0.55% ongoing fee. Its platform and funds cost 0.75%. On £300,000, the first-year total is £4,500 plus £1,650 plus £2,250, or £8,400.
Firm A is cheaper in this illustration, but that does not settle the choice. Firm B might include cash-flow planning or specialist work that Firm A excludes. The consumer must compare scope, competence and restrictions.
In later years at the same asset value, Firm A’s annual cost is £4,050 and Firm B’s is £3,900. The cost relationship therefore changes after the initial year.
Normalising different fee models
Convert every proposal into the same units and period. For example, express all charges as first-year pounds, annual pounds after year one and a five-year cumulative illustration.
Where one firm uses hourly charges, use the estimated hours and show a high and low case. Where another uses percentages, model different asset values.
Document what each calculation excludes. A neat spreadsheet can still mislead if one proposal omits discretionary-management fees or transaction costs.
Comparing advice restrictions and investment approach
Cost should be read alongside whether the advice is independent or restricted, the investment range and the use of in-house services.
A vertically integrated firm may provide advice, platform and investments within one group. That can be convenient, but charges and conflicts should be transparent.
An independent adviser may recommend third-party services with separate fees. Broader product consideration does not automatically mean lower total cost.
Questions when one quote is much lower
Ask whether the firm has omitted implementation, ongoing reviews, specialist analysis, VAT or external costs. Check whether the service is digital or limited-scope and whether a minimum asset level affects future access.
A genuinely efficient lower-cost service may be suitable. The purpose of questioning is not to assume a problem, but to understand the difference.
Questions when one quote is much higher
Ask which additional expertise, planning and deliverables justify the difference. Request the cost of a narrower service if the extra work is not needed.
Do not accept broad claims of superior returns. A higher-cost adviser should be able to explain the service without promising market outperformance.
Comparing the cost of advice that recommends no transaction
One firm may charge for a complete review regardless of the recommendation. Another may quote an implementation-linked fee. Ask what happens if the correct advice is to retain existing arrangements.
A transaction-independent fee can make the cost more visible. An implementation-linked model may appear lower initially but should be examined for incentives and total product costs.
Keeping evidence of the comparison
Save quotations, fee schedules, disclosure documents and calculation notes. Record the asset value used and the date because percentage illustrations can change.
When the final recommendation arrives, compare it with the quote. Ask about unexpected differences before signing or authorising deductions.
Re-running the comparison for an existing adviser
The same worksheet can be used to review an established service. Enter current charges and actual deliverables rather than relying on the original agreement.
Request an updated fee illustration, especially where assets have grown. Compare current alternatives carefully, including the cost and risks of moving products.
Comparing service capacity and continuity
A quotation should also be considered alongside the firm’s ability to deliver. Ask who will provide the advice, how absences are covered and whether reviews depend on one individual.
A lower-cost service with long delays or limited access may not suit a time-sensitive need. A larger firm may offer continuity but use several team members. Neither model is automatically preferable; the responsibilities should be clear.
Final decision record
Write down why the selected quote was chosen: scope, competence, communication, cost and any accepted limitations. This record helps prevent the decision being driven only by a headline percentage or a persuasive meeting.
Sources and further reading
Important: This guide is for general education only. It does not provide personal financial advice, a quotation or a recommendation to use a particular adviser, firm, product or charging method.
Reviewed by: Financial Adviser Hub Editorial Team. Last reviewed: June 2026.