Learn to make a living providing financial advice to others. Understand the job and certification requirements for each type of advisor, including CFP, CFA, and others.

Frequently Asked Questions
  • How do I become a financial advisor?

    In order to become a financial advisor, a bachelor’s degree is usually required; however, employers typically do not require a specific course of study (though it’d be wise to consider degrees and courses related to finance). Once you’ve secured employment with an advisory firm, expect more than a year of on-the-job training under the supervision of a senior advisor. Additionally, depending on the services being offered, an advisor may need a combination of different licenses, which requires registering with state regulators, the U.S. Securities and Exchange Commission (SEC), and/or state boards.

  • What is the career path for a financial advisor?

    While career paths will vary based on what kind of service is being provided, there are essentially five stages in the typical financial advisor career path. Most people starting at advisor firms (without any prior experience) will be hired as analysts responsible for gathering, maintaining, and inputting client data, followed by a promotion to associate advisor, which means being in charge of drafting financial plans, performing asset allocation analysis for clients/portfolio, supervising analysts, etc. The remaining stages are service advisor (i.e., those who implement financial plans and supervise both analysts and associate advisors), lead advisor or managing director (i.e., working directly with clients and supervising service advisors during implementation of financial plans), and principal or partner (i.e., managing the largest/most complex client relationships and supervising one or more team(s) of advisors).

  • How does a financial advisor get paid?

    There are essentially two ways a financial advisor can be paid: through a commission-based model and/or through a fee-based model. With the former model, advisors receive compensation for selling specific financial products to a client, which can result in a conflict of interest. When an advisor charges a fee, the client pays them directly (either hourly, as a retainer, as a percentage of assets (AUM), or as a flat fee) for advice, plan implementation, and for the ongoing management of assets.

  • Are financial advisors in high demand?

    Despite the availability of automated robo-advisors, human financial advisors are still very much in high demand given their capability to offer more complex and specialized investment advice. However, personal financial advising isn’t the most popular career in the world of finance, with the U.S. Bureau of Labor Statistics (BLS) projecting the field to grow only 5% from 2020 to 2030. Although 21,500 openings for personal financial advisors are projected each year, on average, during this same period, the bulk of these openings are expected to result from the need to replace workers who change occupations or leave the labor force (e.g., retire, etc.).

Key Terms

Explore Financial Advisor Careers

How Do I Get Started with a Career in Asset Management?
Common Interview Questions for Portfolio Managers
What Is a Chartered Retirement Planning Counselor (CRPC)?
What Types of Positions Might a Chartered Financial Analyst Hold?
Close up Hands of Businessman Working With Business Document and Laptop on the Table
Series 3 License: A Career With No Limits
businessman gestures as he asks the financial advisor a question
An Example of an Investment Policy Statement
Commodity Pool Operator (CPO): Meaning, Overview, Example
Three people sit round a low table looking at a laptop screen
Is a Career in Financial Planning in Your Future?
Business woman shaking hands with another professional
This Is How Much Mutual Fund Managers Make
Financial advisor and woman with laptop meeting in dining room
A Day in the Life of a Financial Advisor
Businessmen analyzing charts on laptop in office.
Common Interview Questions for Fixed-Income Traders
Young trader is working at stock market with three computer screen on his office desk.
Fixed Income Trader: Job Description and Salary
Accountant vs. Financial Planner: What's the Difference?
A couple with a financial advisor signing a document.
Broker-Dealers and Financial Advisors: Costs and Payouts
Employee Working
The Upside of a Client Service Associate Career
Financial advisor consulting with young couple in living room
What Is an Investment Adviser, How Do They Work?
Stockbroker vs. Financial Advisor Careers: What's the Difference?
Is a financial advisor required to have a degree?
Associate In Fidelity And Surety Bonding (AFSB): Overview
What Is SEC Form ADV? Definition, Requirements, and How to File
Businessman and employee discussing in modern factory
Professional Risk Manager (PRM): What It is, How It Works
cash flow accounting
Choosing a Profession in the Finance Industry
Financial Advisor Planning With Clients at Office
How to Become an Independent Financial Advisor
Accredited Financial Counselor: An Introduction
Man working at home
5 Challenges for Self-Employed Finance Professionals
National Association of Insurance and Financial Advisors
National Association of Insurance and Financial Advisors (NAIFA)
Three businessmen meeting in a conference room.
Chartered Retirement Plans Specialist (CRPS): Meaning, Exam, FAQs
An Introduction to the Profession of Fiduciary Advisor
Young woman sitting at a desk with multiple computer screens.
How to Establish an Investment Committee With Duties and Responsibilities
Introduction to Financial Planning Organizations
Company Size Matters: Job Search for Financial Advisors
Making Money Work for Her Business
Security Analyst: What it Means, What They do, Data
Financial advisor with laptop and paperwork meeting with family at dining room table
Chartered Portfolio Manager (CPM): What It Is, How It Works
Customer's Loan Consent: Meaning, Pros and Cons, Example
Abstract mirror building texture
Financial Analysts Journal (FAJ): What It Is, How It Works
Maximizer
Maximizer
Male accountant calculations and analyzing data with calculator.
Tax Advisor: Who They Are, What They Do, Regulations
Financial Advisor
Do Financial Advisors Have a Base Salary?
Currency Strategist
Currency Strategist: What It is, How it Works
The National Association of Personal Financial Advisors (NAPFA)
financial advisor speaking with couple
Average Salary of a Financial Advisor
Financial Planner: Career Path & Qualifications
Scholarships and Grants for Future Financial Advisors
A man going over paperwork with a couple
7 Careers in Finance at Non-Profit Organizations
Asset Manager Ethics: Investment Process and Actions
Chart analysis close-up
The Best Designation for Advisors: CFP®, CFA, or CPA?
Mixed group of millennial aged friends discuss investing and cryptocurrency trading
Series 65 Exam: Structure and Content
Call Center Workers
Series 24: Definition, Prerequisites, Exam, Difficulty
CFA Certifications: Advantages and Disadvantages
Financial advisor with laptop and paperwork meeting with woman in living room.
CFP, CLU, Or ChFC: Which Is Best?
Two people in suits shaking hands in a restaurant
A Guide to Financial Designations
Two people shaking hands in an office.
Becoming a Registered Investment Advisor (RIA)
Businessman showing client where to sign document
What Licenses Do Financial Advisors Need to Have?
A man holds a phone with financial data in front of two computer screens
Independent Broker-Dealers: Pros and Cons vs. Working for a Wirehouse
Graphic of stock performance
Certified Consumer Debt Specialist (CCDS): Meaning, Benefits
Financial advisor shaking hands with a couple she is advising.
4 Certified Senior Designations Worth Holding
Fiduciary Designations for Financial Advisors
The Alphabet Soup of Financial Certifications
The Top 3 Financial Advisor Credentials
Should You Get A CFA, MBA Or Both?
Page Sources
Investopedia requires writers to use primary sources to support their work. These include white papers, government data, original reporting, and interviews with industry experts. We also reference original research from other reputable publishers where appropriate. You can learn more about the standards we follow in producing accurate, unbiased content in our editorial policy.
  1. U.S. Bureau of Labor Statistics. "How to Become a Personal Financial Advisor." https://www.bls.gov/ooh/business-and-financial/personal-financial-advisors.htm#tab-4

  2. CFP Board. "Financial Planning Career Paths," Pages 23–27. https://www.cfp.net/-/media/files/cfp-board/center-for-financial-planning/financial-planning-career-paths-guide.pdf?la=en&hash=926D57C42C624F53AFA2118DF1096145

  3. The National Association of Personal Financial Advisors. "What Is Fee-Only Financial Planning?" https://www.napfa.org/financial-planning/what-is-fee-only-advising

  4. StudentScholarships.org. "The Most in Demand Professions That Aren’t Actually Popular Today." https://studentscholarships.org/articles/43/the-most-in-demand-professions-that-arent-actually-popular-today

  5. U.S. Bureau of Labor Statistics. "Personal Finance Advisors: Job Outlook." https://www.bls.gov/ooh/business-and-financial/personal-financial-advisors.htm#tab-6