For expats managing pensions, investments or savings across multiple countries, choosing the right financial advice model is just as important as choosing the right adviser. Your adviser’s compensation structure directly affects both the quality and independence of the advice you receive.
Three main models exist in the expat market: commission-based, fixed fee and fee-based percentage advice. While each has its place, many expats find that a transparent fee-based percentage model offers the best balance of fairness, alignment and long-term value.
In this guide, we explore how these fee structures work, what expats should look out for and why percentage-based advice has become the preferred approach for international financial planning.
Understanding the Three Main Adviser Fee Structures
1. Commission-Based Advice
Commission-based advice remains common in parts of the expat market, particularly outside Europe. Under this model, advisers are paid by product providers when you invest, transfer a pension or take out a policy.
The apparent advantage is that there is no upfront cost. However, the real price usually appears later in the form of:
- Higher internal product charges
- Early exit penalties
- Lock-in periods
- Limited investment flexibility
For expats, these drawbacks can be significant. Commission-based advice often creates a conflict of interest, where the recommendation that pays the adviser the most may not be the one that benefits you most.
2. Fixed Fee Advice
Fixed fees offer full clarity and predictability. They work well for standalone projects such as:
- A pension review
- A one-off financial plan
- An investment suitability assessment
Fixed fees are typically charged per project and give you a clear upfront cost. However, they may not be the most efficient model for long-term portfolio management or ongoing retirement planning.
For expats with evolving financial needs across borders, fixed fees may be best used as part of a hybrid structure rather than as the sole model.
3. Fee-Based Percentage Advice
The fee-based percentage model charges an annual fee based on the value of your portfolio. For example, many expats pay between 0.75 percent and 1 percent per year, depending on portfolio size and service level.
This model has become the standard for transparent international financial advice because:
- Your adviser only earns more when your portfolio grows
- There is no incentive to recommend expensive or unsuitable products
- Charges are easy to understand and compare
- You benefit from ongoing reviews, support and guidance
Most importantly, the interests of the expat and adviser are aligned. Your long-term success drives the adviser’s remuneration.
At Harrison Brook, this is the model we use. It allows us to offer completely independent advice with no commissions and full transparency.
Why Fee-Based Percentage Advice Is Often Best for Expats
Expats face unique financial challenges:
- Assets spread across countries
- Foreign tax rules
- International pensions
- Currency exposure
- Long-term mobility
A percentage-based structure supports these needs better than any other model.
Alignment of interests
Your adviser benefits only when your portfolio grows in value. This naturally encourages good investment discipline and a long-term strategy.
Clear and ongoing support
You receive continuous service, often including portfolio rebalancing, annual reviews, risk assessments and tax guidance.
Full transparency
Fees are openly disclosed, simple to calculate and easy to compare.
No conflicts of interest
The adviser is not paid by product providers, so the advice remains independent.
Scales with complexity
As expats accumulate assets, require cross-border support or deal with multi-currency planning, percentage-based advice remains fair and proportionate.
Is Fee-Based Percentage Advice Expensive?
This is one of the most common expat questions. In reality, it is often better value than commission-based advice, especially for long-term pension and investment planning.
Typical fee levels include:
- Initial advice fee: Usually fixed or a small percentage
- Ongoing percentage fee: Often 0.75 percent to 1 percent per year
- Platform fees: Between 0.2 percent and 0.4 percent
- Fund charges: Depending on your investment strategy
The key difference is transparency. Nothing is hidden and there are no lock-ins or penalty structures. You pay for advice, not for products.
How to Evaluate Whether a Percentage-Based Adviser Is Worth It
Ask these questions:
- What is included in your ongoing service?
- How do you assess investment risk for expats?
- Do you receive any commission from financial products?
- How often will we review my portfolio?
- What are the total costs including platform and fund fees?
- Are my investments fully flexible with no penalties?
- Can I exit at any time without charges?
A fee-based adviser will be clear, transparent and consistent in every answer.
FAQs – Commission, Percentage or Fixed Fee Advice
Is 1 percent a fair fee for financial advice?
Yes. For expats, 1 percent per year is considered industry standard for ongoing management and advice that includes annual planning, risk analysis and portfolio oversight.
Is fee-based advice better than commission-based advice?
Generally yes. Fee-based advice removes conflicts of interest and ensures that recommendations are driven by your needs, not product incentives.
Is 0.75 percent a good management fee?
A 0.75 percent fee is highly competitive, especially for larger portfolios, and represents excellent value when combined with full ongoing service.
Why is percentage-based advice popular with expats?
It aligns adviser incentives with your long-term performance and provides clarity, flexibility and independence across multiple jurisdictions.
Are fixed fees better for one-off projects?
Yes. Fixed fees are ideal for specific tasks such as pension analysis or initial financial planning. Percentage-based fees are better for ongoing investment management.
Speak to Harrison Brook Today
At Harrison Brook, we believe in transparent, fee-only advice that prioritises your long-term success. As an expat, you deserve clear, independent and unbiased guidance without hidden costs or commissions.
Our percentage-based model ensures your interests always come first and that your adviser is fully aligned with your financial goals.
Book your free, no-obligation consultation today and discover the benefits of fee-based percentage advice for expats.
