A financial advisor advises clients on investments, loans or insurance products. Since the term “financial advisor” is not legally protected, the job profile is very heterogeneous. For example best financial advice from a financial advisor can be trained as a banker and have worked in this profession.

Likewise, financial advisors can also be tax advisors or insurance agents. Alternative names for financial advisors on the market are also insurance intermediaries, insurance agents or financial experts.

Consumers may need the help of a financial advisor to find the one that suits them best with a variety of investment opportunities. For example, the financial advisor can help you choose the right investment or help consumers put together appropriate insurance cover. Likewise, financial advisors can help you configure a home loan. At the end of the consultation, a direct brokerage of financial products by the consultant is also possible.

Find a good financial advisor

Good financial advisors are usually optimally trained and have sufficient professional experience. For example, you can find out about the training or the necessary professional experience of your financial advisor beforehand on their homepage.

A financial advisor is also good if he is independent and does not simply act as an intermediary for a bank or insurance company. As an independent financial advisor, for example, he is not bound by special commission agreements. So you can be sure that you get a loan on the best terms on the market.

Unconditional trust is out of place

Even if a financial advisor is looking for the best financial advice for the best possible protection or investment for you, he will always act strongly in his own financial interest. So it is important not to trust him unconditionally, because ultimately he wants to earn money from you too. Always remember that there is basically nothing for nothing in the financial industry.

So go well prepared in financial advice

You can get detailed information about individual forms of investment in advance, regardless of a financial advisor. There is generally sufficient information on banks’ websites to get an idea of ​​what is on offer. You can also use comparison portals to compare individual products or providers for example in a credit comparison. In addition, think in advance about which types of investment you are particularly interested in and how much money you would ultimately like to invest.

The goal of your investment is also important. Based on this goal, the financial advisor can find suitable solutions much easier. Should the capital be used primarily for old-age provision or do you want to invest in real estate?

The more you know in advance about your own goals and wishes as well as about possible products, the better prepared you are for financial advice. This is how you recognize dubious financial advisors

  • The financial advisor will call you before you even get in touch.
  • You should sign blank forms.
  • You will be urged to complete some products.
  • The advisor will not clarify the risks of investment products.
  • The advisor does not accept any other witnesses during the consultation.
  • You will be caught with a prospectus right from the start.
  • This is how you can recognize serious financial advisors
  • You will receive a written confirmation of the most important facts.
  • The consultant will give you sufficient time to think before signing the contract.
  • The advisor will clarify your options to object.
  • The advisor will advise you that you can also get a second opinion, for example from the consumer advice center.
  • The advisor goes into detail about the status quo of your investment and tries to include it in the new concept without wanting to quit prematurely.

Reputable consultants work with a consultation protocol.

You should check existing advisory contracts. If contractual deadlines have been agreed, you must adhere to them. If there are no corresponding contracts, you can easily change your financial advisor without separate termination.

Fee vs. commission

Customers have the option of using various types of financial advisors. Some consultants work on a fee basis. This means that they receive a fee for their advice regardless of the contracts concluded. Up to 150 euros per hour are usual. However, investing in a fee advisor can be worthwhile, as these financial advisors can recommend suitable products completely independently of commissions.

If a financial advisor only works on a commission basis, customers can quickly fall into the so-called “commission trap”. In this case, the consultant does not convey the best possible product for the customer, but the one with which he earns the most commission.

The consumer advocate

These types differ in their procedures. While the fee advisor offers his advisory service for a fixed fee, the commission advisor advises free of charge, but is remunerated through the commissions of the brokered financial products. The consumer advocate recommends financial products based on secured data on individual banks.


Anyone who relies on the greatest possible security when investing should therefore opt for the advice provided by the consumer protection centers. Those who do not want to pay for the advice and who accept that they will receive a product selection based on the consultant’s tiered commission can use the commission consultant. The fee advisor is recommended for independent advice, in which the customer is advised as objectively as possible, even with risk-taking investments.