Fee-based financial advisors are paid a pre-decided fee for their financial services, which can either be a flat retainer or an hourly rate fee. For example, if the advisor were to help handle your investments, this fee may be charged as a percentage of your assets under management (AUM). While the advisor largely receives their income through the fees paid by you, they are also compensated by a small percentage via commissions paid to them by brokerage firms, mutual fund companies, insurance companies, or an investment partnership. Although fee-based advisors may make some of their income via commissions on some of the products they sell, their interests are considered to be primarily in line with those of their client's.