When fee-based is worth it?
“If you don't know what to do, put one part in CDB and another in Tesouro Direto. You will earn 1% per month doing nothing.” “I declined the 1% proposal and they did 0.7%, but I'm still not sure if it's worth it.” This is part of a discussion on an investor forum about whether, and […] The post Quando o fee-based vale a pena? appeared first on Brazil Journal .
Investors in Brazil are discussing the merits of the fee-based model versus the transactional model when working with financial advisors. In the fee-based model, investors pay a professional a fee, typically ranging from 0.4% to 1% of their assets per year, while in the transactional model, professionals are remunerated through commissions received from product sales.
The fee-based model is gaining popularity, accounting for 26% of XP's custody, with companies like Monte Bravo, which has R$ 45 billion in custody, adopting this approach. However, opinions on the best model vary among industry professionals, with some arguing that it depends on the investor's profile and needs.
Written by urgent.news from Brazil Journal's report — not a translation of it. Machine-written — may contain errors; check the original before relying on it.
