The One Question I Get Every Single Day: How Does My Advisor Make Money?

Let’s Talk About It.

I vividly remember the first time one of my prospective clients asked me how brokerage advisors get paid. If I’m being honest, I couldn’t answer him because I didn’t actually know. I was in my twenties, brand-new to Wall Street, and my business card said stock broker.

It was a totally fair question but the answer turned out to be ridiculously complicated. (Think: Morgan Stanley, Ameriprise, Edward Jones.) We had a 21-page compensation plan — that’s not a typo — and I did try to explain it but I knew most people left my office more confused than when they asked.

I never really forgot how ashamed I felt of what I was selling versus what I could really deliver. The very people who were supposed to trust this big brokerage firm with their life savings couldn’t even find out what they were paying.. Or really what they were getting for that matter.

Fast-forward to now. After decades of real experience and then countless conversations with the fiduciary advisors in my Wealthramp network, I can tell you this is the one question I guarantee somebody’s going to ask me today: “How does my advisor actually make money?”

It’s the right question to ask — and I’m really proud that I’ve become one of the most trusted resources for learning how advisors operate. Because we all know – how somebody earns their paycheck tells you almost everything about where their loyalty lies.

In my post, I break it down so you can now walk away with a clear answer about how financial advisors get paid, what each model means for you, and the big, bright red flags to watch out for.

I originally wrote this back in 2022 and it’s still the question on everyone’s mind– as it will be in 2026 and beyond.

Because once you understand how your advisor gets paid, you understand whose side they’re really on.