Fee-based financial planners/brokers charge up-front fees for providing services and charge commissions on any securities trades or insurance purchases that they conduct on your behalf. True / False.

True

Explanation:

FEE-BASED financial planner/ broker do indeed charge upfront fees for providing services and charge commissions on any trades on a client's behalf.

Indeed if an advisor earns money through any other source apart from management fees, they fall under this category.

There is a chance for a conflict of interest here as the advisor may direct their client to stock or investments where they stand to make a profit even if it's not in the client's best interest.

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