How much does a financial advisor earn?

There is nothing to hide – each of us has often asked himself this question. On the one hand, interest in the amount of someone else’s remuneration can be considered nosy, but when our own money is involved, let’s agree – we don’t have to be such diplomats. The earnings of a financial adviser are, after all, closely related to the amount we decide to entrust to a selected bank. And if we think ourselves to give up our previous profession and begin the adventure with financial consulting? Is it worth it How much does a financial advisor earn? has more information

Financial advisor – not so scary devil?

There are legends about dishonest financial advisors. Indeed, it is currently difficult to find a professional who will not only substantively present his clients the opportunity to trade their finances, but also will not use their trust in any way. What it comes from? Firstly, for lack of competence. Anyone who (in exchange for a commission) undertakes to acquire new clients for a specific bank can become an adviser. The previous career path of such a person does not matter – what matters is his negotiating and sales skills, his knowledge and integrity. Unlike an investment adviser, he doesn’t have to take any exams. Is this the second reason why good financial advisors are like medicine? Nothing similar.

The problem lies in the model of their remuneration, which may cause that this industry will be subject to many abuses. We emphasize – maybe, because there is no rule here. However, we must reckon with the fact that our interest will not coincide with the interest of a financial adviser. We want to spend as little as possible, he – to earn as much as possible. It should be remembered that we do not pay the adviser directly. This is done by a bank or institution whose product or service has been sold to us by a financial advisor.

Parable of a good adviser

A good credit advisor, or generally a financial advisor, not only has many clients, but also signs contracts with them for correspondingly high amounts. Patience and long-term thinking pay off here. Only thanks to this will the advisor’s payment be richer by another zero. How do you get to know good advice? Many people recommend it, especially our friends. It boasts experience and successes in the financial industry, has a stable customer base and cooperates with several institutions, which is easy to verify. If these factors are met, we will have before us an advisor who will earn monthly as much as the presidents of the largest national corporations. Just two a month to advise customers to choose the best mortgage for them for the amount of 300 000 PLN, and will go into his pocket up to 5% of its value. Times two.

A typical example

Let’s assume that Mr. Chen’s car broke down, but he doesn’t want to repair it anymore – he prefers to buy a new one. He likes the Skoda Fabia from 2017. He cannot afford to pay in cash, so he must take a consumer loan for PLN 70,000. Mr. Chen does not watch ads and does not know the current loan offers in banks, so he looks for a credit advisor to help him choose the best one. He was ordered to Mr. Moon, who works with Derant Bank on a daily basis. So he advises Mr. Chen to take out a loan for his dream car. Mr. Chen agrees because he trusts his adviser. Is Mr. Moon a good financial advisor? Of course. He knows that the higher the interest rate on the loan, the higher the commission for it. If Mr. Chen decided to take a loan, for example, at the CASHET bank, Mr. Moon would earn half as much. The amount of commission from a credit advisor ranges from 0.5% to even 5%. Meanwhile, the story with our gentlemen has a happy end, because Mr. Chen has a new car, and Mr. Moon – a finalized transaction, money on the account and a satisfied customer.

What can a financial adviser sell us?

Mortgage transactions are the most profitable for financial advice because they involve larger amounts. His salary may also be affected by advice on consumer credit, life or apartment insurance, and even starting a credit card. We apply the principle of limited trust to the credit intermediary, but do not exaggerate – the fact that a financial advisor wants to add insurance for a home renovation loan does not necessarily mean that he is planning to deceive us. It is possible that at this time, this option will simply be the most advantageous for us. For a consultant, by the way, too.

And if I was a hammer …

Although there are at least as many telemarketers as there are telemarketers on the market, we cannot hide that we need them. Theoretically, everyone is the best adviser for themselves, but hardly anyone has the time and self-denial to stay up to date with all bank offers. We are investing more and more, buying apartments, cars, going on a luxury vacation – financial advices are simply becoming necessary. Thanks to their advice, we have a chance to avoid painful credit decisions. Technical professions and those related to marketing and finance are the present and future of our labor market.

Let’s get to the point

If you are not thinking about working with a financial advisor and you intend to become one yourself, read what earnings you can expect. At the beginning, as I think in any industry – small. Before you build a customer base and achieve liquidity in signing contracts, you’ll earn about PLN 2,000 a month. Successive customers and experience will allow you to jump to the next level – expect that your account will have PLN 5,000-7,000 every month. This scenario will be possible if you sign at least 5 consumer loan agreements for an amount of not less than PLN 60,000, with a commission of min. 2%. To reach this ceiling, one mortgage contract is enough. Financial advisors with an established position usually do not earn less than PLN 12,000 a month. Their payment increases even more depending on the number of institutions they work with. Many of them belong to the group working on the highest commissions: 5% up. The profession of a financial or credit advisor requires a lot of work, but allows you to earn from several to several thousand zlotys per month. It is up to us to decide which side of the desk we prefer to be on.


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