What's the difference between Fee-Only and Fee-Based?

In short, advisors who are compensated on a “Fee-Only” basis are compensated solely by their client and not from third parties from the sale of investment or insurance product. “Fee-Based” refers to a compensation system in which an advisor may be paid on either a fee basis or via commissions from the sale of investment or insurance products. Fee-Based advisors generally arenot fiduciaries for their clients—because there is an inherent conflict of interest in the products they are using.