In the financial world, there seems to be a clear advantage: free consulting. Many banks, insurance companies, or brokers advertise that they offer their customers free advice. However, anyone who looks a little deeper into the subject quickly realizes: “Free” is rarely really free.
On the contrary – it is often significantly more expensive than a consulting service based on fees.

In this article, you will learn why fee-based financial consulting is the more affordable and fair solution in the long run and how you can achieve real financial advantages with it.

1. Free consulting is financed through commissions – and in the end, the customers always pay

If consulting is offered for free, it must be financed in another way. Typically, this is done through commissions that the consultant receives when a product is concluded – such as an insurance policy, an investment fund, or a retirement plan.

These commissions are priced into the products.
Examples:

• Closing commissions for life and pension insurance

• Ongoing commissions / kickbacks for investment funds

• Closing fees for loans

• Sales charges for funds (up to 5 %)

The result:
You get products that are not necessarily the best, but the ones with the highest commissions.

This costs you in the long run:

• higher fees

• worse returns

• inflexible contracts

• long terms

• limited choices

2. Fee-based consulting works independently and product-neutral

In fee-based consulting, the client pays the consultation fee directly – similar to a tax advisor, lawyer, or doctor.

The key advantage:
The fee-based advisor does not earn more when he sells you a specific product. This creates a completely different motivation: He is only recommended or commissioned again if his advice is objectively good and successful in the long term.

This means for you:

• The selection of financial products is made without commission interest

• Cost-effective ETFs or insurance policies are preferred

• The recommendations are transparent and traceable

3. Lower product costs outweigh the fees – every year!

Many financial products from the commission world are significantly more expensive than comparable solutions recommended by a fee-based advisor.

An example:

Even if the consultation fee appears higher at first, the cost difference in the products pays off significantly.

4. More returns in the long run through lower fees

Fees are one of the biggest killers of returns.
A reduction of ongoing costs by just 1 % per year can result in a yield difference of easily 50,000 CHF or more over 30 years – depending on the investment amount.

Fee-based consulting deliberately focuses on:

• cost-effective ETFs

• transparent rates without hidden fees

• flexible account solutions

• long-term, scientifically based investment strategies

This allows more returns to stay with you.

5. You don't buy products – you buy competence

In fee-based consulting, you pay for knowledge, strategy, and planning, not for the sale of a product.

This includes:

• objective analysis of your situation

• financial planning and asset strategy

• retirement planning

• insurance concepts

• comparison of all relevant providers

• support and optimization over the years

This know-how ensures that you always make the most financially sensible decisions.

6. Fewer poor decisions mean lower costs

Free consulting often leads to:

• overpriced insurance

• inappropriate retirement contracts

• bad funds

• unnecessary reallocations

• cost traps and lack of transparency

Every poor decision costs money – often a lot of money.
Good fee-based consulting prevents exactly that.

7. Self-determination instead of sales pressure

A significant advantage: In fee-based consulting, there is no sales pressure.

You decide:

• which services you need

• how much support you want

• whether you implement the recommendations yourself

You get a true partner on equal footing.

Conclusion: Fee-based consulting is not cheaper – it is more affordable

While free consulting often brings hidden costs and expensive products, fee-based consulting offers:

• transparent prices

• affordable, high-quality financial products

• objective advice

• significantly higher returns in the long term

• independent expertise

Those who want to shape their finances sustainably and professionally will find that fee-based consulting is not only fairer, but also financially significantly better.