Increasingly, the business models of brokers and advisers overlap. Traditional brokerage firms such as Morgan Stanley Smith Barney, Merrill Lynch, and Edward Jones offer fee based accounts while many professionals who refer to themselves as advisers earn commissions for selling mutual funds and alternative investment products such as hedge funds and commodity pools.

While both business models can be very chicago certified financial planner for the professionals, fee based accounts better align the interest of the adviser and the client. Since advisers managing fee based accounts earn higher fees when the account performs well, they have an incentive to select investments which they believe will perform well and be suitable for their client. In contrast, brokers managing commission based accounts earn more commission when the client trades frequently and have a strong incentive to encourage trading even when the trade may not be in the client's best interest. This is one reason why it is important to read reviews and recommendations for your adviser before make a decision.

When interviewing an adviser, it is important to ask detailed questions about what types of fees the adviser charges. Always ask for a "fee schedule." Because many people are uncomfortable asking these questions directly, potential clients can ask a financial adviser a question directly online without revealing their name or contact information. This allows the potential client to get necessary information without worrying about getting unwanted communication from the adviser in the future.