On the client side

One day, someone will advise you on your money. An investment, a loan, an insurance. The first question is not "what".

The first question is: who pays this person? Because the answer often steers the advice. Here are four cases.

First case: the bank advisor. They are an employee of their bank, and they advise on their bank's products.

They often have sales targets: so many contracts, so many insurances, so many cards. It is not a secret, it is the job.

They can be skilled and honest. But they won't offer you a competitor's cheaper fund.

How is the bank paid? Often through the fees of the products themselves. Take an imaginary example.

You put fifty thousand euros into funds. Every year, zero point nine per cent goes back to the distributor.

That is four hundred and fifty euros a year. Over ten years, at a constant amount, four thousand five hundred euros. That you never saw go by.

Second case: the independent advisor, paid by fees. You pay them directly, like a lawyer.

In the app, this chapter is animated and narrated, card by card. Start free trial.

Download on theApp Store

Say six hundred euros for a review. The price is visible, and it stings at the time. The kickback was invisible.

The twist: advice that looks free is often the most expensive. The one you pay for is visible, and can be compared.

In Europe, since twenty eighteen, advice called "independent" cannot keep the commissions on the products it recommends.

Watch the words: not every advisor outside a bank is "independent" in the legal sense. Ask them how they are paid.

Third case: the broker. They compare offers from several banks or insurers, and find you the best one... among their partners.

They are often paid by the seller: a commission from the bank or the insurer. Sometimes also by fees charged to the client.

A broker can save you a lot, especially on a loan. But their comparison stops at the firms they work with.

Fourth case: the private banker. A more personal service, reserved for clients who entrust large sums.

The entry threshold varies by firm. It is often counted in hundreds of thousands of euros.

More attention doesn't mean lower fees. The products offered can be more complex, and more costly.

Four jobs, four ways of being paid. Salary and targets. Fees. The seller's commission. Charges on a large estate.

Before any advice, ask in writing for the total fees, in euros, and the share that goes to the person in front of you.

Professionals are required to inform you about their costs. A vague answer is already an answer.

Good advice exists in all these forms. But it always starts with knowing who pays for it.