In some countries, commission is banned from being taken from investment funds/products. However, this is not the case in all countries around the world. Generally, if there is a term or a contract that says you must hold the investment for a specified period, then you will be paying a commission for the advice.
If a commission is involved, then an advisers’ objectivity might well be compromised. Generally, the interests of a professional charging a fee will be aligned with your interests. Commission may be an effective way to pay for the advice and product you want, for instance, term insurance to provide a lump sum for your family.
However, if you invest $1,000,000 of your hard-earned cash, would you feel comfortable paying 7% that was contingent on the transaction. Or would you prefer to pay a fee that was not contingent on any sale? Or if you invested for $5,000 per month but the contracted period the of investment was 25 years would you be happy paying $67,500 in commission?
We think that commissions on investment will cloud objectivity and lead to a conflict of interest for you.