financialadvisor.co.uk Check an Adviser Search
Definition Advice fees

Do financial advisers have a minimum investment or minimum fee?

Many UK advice firms set a minimum: either a minimum amount of money they will advise on, or a minimum fee that applies however small the amount, so a percentage quote can cost more in pounds than it first appears.

Minimums are set by each firm, not by regulation, and they matter most for smaller pots, where a minimum fee can be several per cent of the money.

By Nathan Hill-Haimes · First published · Last reviewed · All definitions

Two different minimums

  • Minimum investment. The firm only takes on clients with at least a set amount to invest or in pensions.
  • Minimum fee. The firm charges at least a set amount in pounds. A 1% charge with a £1,500 minimum is 3% on £50,000.

Why firms set them

Advice involves a similar amount of work and regulatory cost whether the pot is £40,000 or £400,000. A firm charging a percentage therefore needs a floor to cover its costs on smaller cases.

If you fall below a minimum

  • Look for firms offering fixed-fee or hourly advice on a single question.
  • Use free, impartial guidance first: MoneyHelper, and Pension Wise if you are 50 or over with a defined contribution pension.
  • Read about targeted support, a newer, lighter form of help some providers now offer.

Sources

General information only, not regulated financial advice or a personal recommendation. FinancialAdvisor.co.uk is not authorised or regulated by the Financial Conduct Authority. Figures are labelled with their source and date; they describe the market, not any firm, and are not quotes. Spotted an error? Report it and we will correct it.