If you’re searching for a fee-based or fee-only financial advisor in Toronto, it likely means you want expert financial advice — without hidden commissions or product sales pressure.
In this guide, we’ll break down the difference between fee-based and fee-only models, what to look for in an advisor, and how to find one that aligns with your goals.
What Does “Fee-Only” Mean in Canada?
When you hear the term fee-only financial advisor, it refers to a professional who is compensated solely by their clients — not by commissions, referral fees, or product sales.
That means a fee-only advisor’s only financial incentive is to provide advice that benefits you, not a financial institution. In Canada, this model is often associated with fiduciary advice, where the advisor must act in your best interest at all times.
For example, a fee-only financial planner in Toronto might charge you a set fee to build your retirement income plan or help you minimize taxes. They don’t receive hidden commissions from mutual funds or insurance products, so you know the advice is objective and transparent.
Many Canadians prefer this approach because it aligns with their goals — especially retirees or business owners who want unbiased, tax-efficient financial advice without product pressure.
Common Fee Structures Used by Fee-Only Advisors
Fee-only financial advisors in Canada use different pricing models depending on the scope of work and complexity of your finances. Let’s look at the most common ones.
1. Hourly Fees
With an hourly model, you pay only for the time spent on your case — similar to how you’d pay a lawyer or accountant.
Typical rate: $150–$400 per hour
Best for: Clients who want one-off advice or a financial check-up
Example: You might hire a fee-only advisor to review your investment portfolio or optimize your RRSP/TFSA strategy.
This model works well if you don’t need ongoing advice but want clarity on specific financial questions.
2. Flat Fees or Project-Based Fees
Flat fees are set prices for specific services — such as creating a retirement plan, estate plan, or corporate tax strategy.
Typical range: $1,500–$6,000 per project
Best for: Clients who want comprehensive planning but prefer cost certainty
Example: You pay $3,000 for a detailed financial plan with recommendations to reduce taxes and increase income during retirement.
Flat fees offer transparency and make it easier to budget for professional advice.
3. Percentage of Assets Under Management (AUM)
This model is common when an advisor also manages your investments. You pay an annual percentage of your portfolio value.
Typical rate: 0.5%–1.25% of AUM
Best for: Clients who want ongoing investment management and advice
Example: If you invest $500,000 and the advisor charges 1%, your annual fee would be $5,000.
While this model still qualifies as “fee-only,” it’s important to confirm the advisor does not receive any embedded product commissions. True fee-only advisors disclose all fees upfront.
Comparing Fee-Only vs Fee-Based Compensation
This is where most Canadians get confused — fee-only and fee-based sound similar, but they’re very different.
| Feature | Fee-Only Advisor | Fee-Based Advisor |
|---|---|---|
| How they’re paid | Only by clients | Combination of fees and commissions |
| Potential conflicts of interest | Minimal | Possible (if they sell commission-based products) |
| Transparency | High | Varies |
| Fiduciary standard | Usually | Not always |
| Common clients | High-net-worth, retirees, business owners | Mass market investors |
Fee-only advisors make money only from you, ensuring there’s no bias toward certain products or providers.
Fee-based advisors, on the other hand, might earn part of their income through commissions on mutual funds, insurance policies, or investment products they recommend.
While both can be qualified professionals, fee-only advisors are often preferred by those who value independence and want to avoid hidden costs.
See how fee-based and fee-only advisors compare in Toronto
Pros and Cons of Working With Fee-Only Advisors
Like any model, fee-only advice has its strengths and limitations. Let’s look at both sides.
✅ Pros
Unbiased recommendations: No product sales or commissions influencing advice.
Full transparency: You know exactly what you’re paying and what you’re getting.
Goal alignment: Your advisor’s success depends on your success.
Flexible service options: Pay hourly, per project, or for ongoing portfolio management.
Better for complex planning: Especially beneficial for retirees, professionals, and incorporated business owners with multiple income sources.
⚠️ Cons
Upfront cost: You’ll pay directly out of pocket, which may seem expensive at first.
Less access to proprietary investment products: Since they don’t sell products, you’ll need to implement recommendations yourself or through a discount brokerage.
Limited availability: Not all financial planners in Canada operate as truly fee-only advisors.
That said, many Canadians find the trade-off worthwhile for the peace of mind and trust it brings.
How to Decide if a Fee-Only Advisor Is Right for You
Here are a few questions to help you determine whether working with a fee-only advisor is the right choice:
Do you value objective advice over product access?
Fee-only advisors are focused on your long-term financial outcomes — not commission sales.Are you comfortable paying directly for advice?
Paying a clear, transparent fee upfront ensures there are no hidden costs.Do you need complex planning across taxes, retirement, and estate?
Fee-only advisors often specialize in integrated financial strategies — ideal for high-income earners, business owners, or those nearing retirement.Do you want ongoing or project-based support?
Choose the structure that fits your needs — whether that’s a one-time plan or a long-term partnership.
If your priority is objective, transparent advice that helps you keep more of your wealth, a fee-only advisor can be an excellent fit.
Learn more about working with a fiduciary advisor in Ontario.
Fee-only financial advisors in Canada represent a growing shift toward transparency and client-first advice. They’re compensated directly by you, not financial institutions, which helps eliminate conflicts of interest and build trust.
Whether you’re nearing retirement, managing corporate assets, or planning your estate, a fee-only advisor can help you make better financial decisions — with confidence that the guidance is 100% aligned with your goals.
Recommended Reading:
Fee-Based vs Fee-Only Financial Advisor: What’s the Difference in Toronto?
Our Approach — Transparent, Fee-Based Planning for Toronto Families
At Ontario Wealth Strategy Experts, we provide comprehensive financial, tax, and retirement planning — all under one transparent fee.
We believe great advice should be:
✅ Transparent
✅ Unbiased
✅ Personalized to your goals
We serve clients across Toronto, Mississauga, Oakville, and the GTA.
How much should I expect to pay in Toronto?
Costs vary widely based on your needs and the advisor's model:
For a $500,000 portfolio: Expect $2,500-$10,000 annually with AUM-based pricing
Initial financial plan: $2,000-$5,000 for comprehensive planning
Hourly consultation: $200-$400 per hour on average in Toronto
Remember that with fee-based advisors, you may also pay embedded commissions in investment products (MERs of 0.10%-1.1% are common).What's a fiduciary and why does it matter?
A fiduciary is legally and ethically obligated to act in your best interest at all times. Fee-only advisors typically operate as fiduciaries.
Fee-based advisors may operate under a "suitability standard" when selling commission-based products, meaning they only need to recommend products that are suitable for you, not necessarily the best option.
Always confirm whether your advisor acts as a fiduciary for all services they provide.What questions should I ask potential advisors?
Essential questions to ask during your consultation:
Are you fee-only or fee-based? How exactly are you compensated?
Are you a fiduciary 100% of the time?
What are your credentials and how long have you been practicing?
What services do you provide and what's your typical client profile?
Can you provide references from current clients?
How often will we meet and how do you communicate?
What's your investment philosophy?
Do you have any conflicts of interest I should know about?What credentials should I look for in Toronto?
Look for advisors with recognized Canadian designations:
CFP (Certified Financial Planner): Comprehensive financial planning expertise
CFA (Chartered Financial Analyst): Investment management focus
CIM (Chartered Investment Manager): Portfolio management specializationVerify their registration with the Ontario Securities Commission (OSC) or CIRO, depending on their licensing.Which type of advisor is better for me?
Consider a fee-only advisor if:
You want complete transparency and no conflicts of interest.
You have complex financial needs requiring unbiased advice.
You prefer to pay directly for advice rather than through embedded product costs.
You value fiduciary duty (they must act in your best interest).
A fee-based advisor might work if:You're comfortable with the commission structure and understand potential conflicts.
You need specific insurance products or investments they offer.
You have a smaller portfolio and hourly fees seem too high.
