Types of financial advisors, explained
Planner, wealth manager, broker, CFP®: who does what, and how to tell them apart.
By the ChooseAFinancialAdvisor.com editorial team · Reviewed October 2026 · 3 min read
“Financial advisor” isn’t a protected title, so people with very different training and responsibilities use it. Licenses, registrations, and designations tell you far more than a business card.
Investment advisor representatives
These professionals work for registered investment advisory firms and give advice for a fee. They typically hold the Series 65 or Series 66 license and act as fiduciaries when giving investment advice.
Registered representatives (brokers)
Brokers work for broker-dealers and help clients buy and sell securities, usually earning commissions. They typically hold the Series 7 license and follow Regulation Best Interest when making recommendations.
Financial planners and CFP® professionals
Planners look at your whole financial life: budgeting, retirement, taxes, insurance, and estate planning. The CFP® designation requires college-level coursework, a comprehensive exam, several years of experience, and ongoing education, and CFP® professionals commit to a fiduciary standard when giving financial advice.
Wealth managers
Usually a combination of investment management with planning, tax, and estate coordination, often for clients with larger balances. The term isn’t regulated, so ask what’s actually included.
Robo-advisors
Automated services that build and rebalance a simple portfolio at low cost. Some offer access to human advisors for an added fee.
| Type | Common license or credential | Usually paid by |
|---|---|---|
| Advisor representative | Series 65 or 66 | Fees |
| Broker | Series 7 | Commissions |
| CFP® professional | CFP® certification | Varies |
| Robo-advisor | Firm is registered | Low fees |
This guide is general education, not financial advice. Your situation is your own, so talk with a qualified professional before making decisions.