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How much does financial advice cost in the UK?

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UKPublished 6 October 2026 · Written by BuyMeWhiskey Editorial Team · How we check facts

UK financial advice has no single standard price. A firm may charge a fixed amount, an hourly rate, a percentage or a combination, and an ongoing fee should correspond to an ongoing service. The FCA requires charges to be explained clearly before you pay.

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Compare advice firms and ask each for the initial and ongoing fee in cash terms before agreeing to the service.

FCA: Financial advice

Run your own numbers: Compound interest and savings calculator.

Advice can be charged in several ways

The price depends on what you are asking the adviser to do. A one-off pension review may be quoted differently from a full financial plan or a continuing investment-review service. The FCA’s adviser-charging rules require firms to explain how charges work and, where relevant, give cash examples of percentage or hourly charges.

That means “free advice” should be treated carefully. A bank account package may include a service at no separate headline price while other costs, product charges or eligibility conditions sit elsewhere. Advice also differs from guidance, which may be available from free services such as MoneyHelper.

Ongoing charges must pay for an ongoing service

The FCA says a firm can only take an ongoing advice charge when it is providing an ongoing service, such as regular suitability reviews, or in other permitted circumstances. The client should be told what the service includes, what it costs and how the arrangement can be cancelled.

This matters because an annual percentage fee compounds as your assets grow. A client who pays 0.5% of investments is not paying the same pound amount each year if the portfolio rises or falls. The cash impact should therefore be shown, not left as a percentage that feels abstract.

Compare total cost, not just the headline rate

Two firms can quote different percentages while delivering quite different work. One may provide a detailed cash-flow plan, pension review and tax-aware investment recommendations. Another may provide a narrower portfolio review. Price cannot be compared sensibly without comparing the service promise.

Ask for the initial charge, ongoing charge, platform or product costs that sit outside the adviser fee, what triggers extra work, and what happens if you stop the relationship. Get the charging structure in writing.

When free guidance is enough

You do not necessarily need regulated personal advice for every money decision. MoneyHelper provides free guidance on areas such as pensions and investing basics. The FCA also distinguishes personal recommendations from general information.

Free guidance can be useful when you are learning the options or checking the questions to ask. Personal financial advice becomes more relevant when the decision depends on your specific circumstances, tax position, pension guarantees, investment risk or multiple financial products.

Check whether you are actually receiving the ongoing service

The FCA’s 2025 review found that ongoing advice was not always delivered as expected, which is a useful reminder for anyone paying a recurring fee. The exact service should be written into the client agreement. If you are paying for regular reviews, ask what review cycle, reporting and planning work is included.

If the relationship has become “pay and forget”, the problem may not be the fee alone; the service may no longer fit your needs. Review both parts together.

What “advice” on a bank statement can and cannot tell you

A statement label such as “advice” or a similar description is not enough to establish what service you bought. Check the agreement, invoice or adviser disclosure for the description of the work and the agreed amount. If a fee appears that you do not recognise, ask the provider for the document authorising it.

There is also a useful distinction between independent and restricted advice. The service scope can differ, so a lower quote does not necessarily mean the same advice for less money. Ask the firm what products or markets it can consider, what work will be documented, and whether recommendations are limited by the firm’s proposition. That gives you a better comparison than looking only at the first number on a fee schedule.

A useful quote should also explain whether the adviser is being paid for implementation as well as recommendation. Some arrangements charge for the initial plan, then separately cover ongoing reviews or transactions. Put the complete pathway on one page before comparing providers, so a low first-stage price does not hide a more expensive continuing relationship.

Illustrative first-year adviser fees on £100,000

Worked example

Illustrative comparison: suppose two advisers propose different charging structures for a £100,000 investment portfolio. Adviser A charges a fixed initial fee of £1,500 and no ongoing fee. Adviser B charges an initial fee of £800 plus an ongoing percentage of 0.5% of assets.

Adviser A first-year adviser cost: £1,500.
Adviser B initial cost: £800.
Adviser B illustrative ongoing cost on £100,000: £100,000 × 0.005 = £500.
Adviser B first-year adviser cost: £800 + £500 = £1,300.

That does not make B automatically better. If B provides an ongoing review service and A does not, the comparison is really between different services. The figures are illustrative, not market quotations, and they exclude any separate investment-platform or product charges.

Can financial advice really be free?#

A service can have no separate upfront fee while still involving other charges, product costs or eligibility conditions. The important question is what you receive and what you pay in total. Ask for the adviser’s charging structure in cash terms and check whether any ongoing service has a recurring fee.

Do financial advisers charge a percentage of investments?#

Some do. FCA rules specifically require firms using percentage charging to explain charges clearly and provide cash examples. A percentage fee also changes in pounds as the value of the portfolio changes, so compare it with a fixed or hourly quote using the actual amount you expect to invest.

Can an adviser charge me every year without doing anything?#

An ongoing charge should relate to an ongoing service. The FCA says firms must explain the service, its charges and how the client can cancel. If you are paying a recurring fee, compare the promised review and support schedule with what you have actually received.

Is MoneyHelper an alternative to paid advice?#

MoneyHelper offers free guidance and useful calculators, but guidance is not the same as a personalised regulated recommendation. It can be a sensible first step when you need to understand pensions, investing or debt options before deciding whether a paid adviser is necessary.

What should I ask before paying an adviser?#

Ask what work is included, the initial fee, any ongoing fee, how percentages are converted into pounds, which costs sit outside the adviser charge, how often reviews happen, and how the relationship can end. Request the answers in writing before agreeing to the service.

Is an hourly fee better than a percentage fee?#

Neither structure is automatically cheaper. An hourly fee can suit a clearly defined project; a percentage may make sense for an ongoing service but can become more expensive in pounds as assets grow. Compare the scope of work and total expected cost instead of judging the payment method alone.

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Next question →Where could I invest £100,000 today?

Sources

Figures were checked against these sources before publication. If a rule changes, we update the page and show the new date.

General information, not personal financial advice. Rules depend on your circumstances; check the official source or speak to a regulated adviser before acting.