Quando o fee-based vale a pena?
“Se não sabe o que fazer, taca uma parte em CDB e outra em Tesouro Direto. Vai ganhar 1% por mês sem fazer nada.” “Eu declinei a proposta de 1% e fizeram 0,7%, mas mesmo assim não sei se vale a pena.” Essa é parte de uma discussão num fórum de investidores sobre se, e […] The post Quando o fee-based vale a pena? appeared first on Brazil Journal .
The debate among investors over whether to opt for fee-based or transactional models when hiring a financial advisor continues to be a topic of discussion. In the fee-based model, investors pay a fee, usually ranging from 0.4% to 1% of their portfolio annually. Alternately, the transactional model, also known as commissioned-based, compensates professionals through commissions earned from selling products, such as rebates.
The fee-based approach has been gaining popularity, currently accounting for 26% of custodial business at XP, for instance. However, the advantages and disadvantages of this model are not clear and are not only within the market itself.
Financial advisors argue that clients with a need for service, such as financial planning, taxation, and insurance, should choose the fee-based model. Pier Mattei, co-founder of Monte Bravo, shared this viewpoint with Brazil Journal, stating that the client's financial planning benefits more from a fee-based approach.
XP, on the other hand, believes that the same level of service should be provided to investors, regardless of the remuneration model, and that the account for the advisor should end with time. Guilherme Sant’Anna, a co-director of distribution at XP, believes that the remuneration model should not tie to the service delivery model. Sant’Anna cites Edward Jones, a major US brokerage, as a benchmark, which shifted its focus to "financial solutions" rather than isolated product sales.
Ultimately, the choice between fee-based and transactional models depends on the investor's profile, portfolio movement, and the advisor's conflict of interest. It is essential for investors to request an assessment from the advisor to determine the most suitable model for them.
Written by urgent.news from Brazil Journal's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
