Are wealth manager fees worth it? Costs compared to DIY platforms

Reviewed by Rachel Willox, Chief Operating Officer, Netwealth | [October 2026]

Cost is one of the first things people notice about wealth management. DIY platforms range from free to around 0.45% a year, while full-service wealth managers typically charge more, often as a percentage of assets under management. On a large portfolio, even a small percentage difference adds up to a meaningful sum over time.

The key question is what a DIY account may cost over 10, 15, or 20 years. Once you factor in tax drag and the price of poor decisions at the wrong moment, the headline fee is only part of the picture.

Key takeaways

• Wealth management fees cover advice, planning, and tax strategy, not just investment execution.
• A 1% fee difference on £900,000 costs £400,000+ in lost growth over 20 years.
• Investors in volatile funds tend to achieve worse personal returns than their funds generally deliver, driven by mistimed buying and selling at the wrong moment.
• Tax drag and behavioural costs can matter more than the headline fee difference.

The full cost only becomes clear once you look across platform, fund, and advice charges together. Netwealth's fees are structured to be competitive with larger wealth managers, and our financial advisers can walk you through the full picture before you commit to anything.

Speak to our team to find out more.

What wealth management fees cover

A DIY platform charges you for access to investments, with no ongoing financial support, personalised financial plan, or investment advice included.

Conversely, wealth management fees cover a full service:

• Discretionary investment management across your investments
• A unique financial plan based on your personal situation
• Ongoing financial advice as your financial goals evolve
• Regular contact with a personal wealth adviser or experienced financial adviser (depending on the service you require)

Firms often offer different pricing based on service complexity, with more comprehensive services commanding higher fees. Understanding costs fully means looking beyond the headline rate.

The difference between a financial adviser and a DIY platform

A financial adviser on the FCA-authorised adviser register provides personal financial recommendations and carries regulatory accountability. An independent financial adviser covers the whole market. A restricted adviser recommends from a defined range.

Good advice delivers a financial plan built around your current circumstances and ongoing financial needs, reviewed and updated as those change. It avoids costly mistakes that a DIY investor might make when market conditions change or their personal situation shifts.

What your ongoing fees pay for

Ongoing fees on a wealth management account pay for regular meetings, proactive guidance, and direct access to your adviser throughout the year. They cover discretionary investment management, tax planning, and the ongoing adjustments that a financial plan requires as your circumstances evolve.

Across the industry, ongoing fees for wealth management typically run from 0.35% to 1.5%, with fees decreasing as portfolio size increases. At the upper end of that range, the value delivered needs careful scrutiny. 

Netwealth’s Core Service fees run from 0.75% to 0.35% per year depending on portfolio size. The Advised Service (which includes a personalised financial plan with a dedicated financial adviser) runs from 1.10% to 0.70%.

Most investors are surprised by how many cost layers sit beneath the headline rate. Netwealth's financial advisers can walk you through what you’re paying across advice, platform, and fund charges before you commit to anything.

One-off financial advice vs ongoing advice

Not every investor needs a full ongoing advice service. Understanding the difference helps you match the cost to what you actually need.

When one-off advice makes sense

One-off advice gives you a specific recommendation at a single point in time: a retirement income plan, a pension transfer analysis, or a lump sum strategy. Most advisers charge an initial fee for this, usually structured as a percentage of the amount involved.

How much does one-off financial advice typically cost?

According to MoneyHelper, initial advice fees for pensions and investments typically run from 1% to 3% of the amount invested, for example, £1,000 to £5,000 on a £100,000 portfolio. Fixed fees are also common for a clearly defined piece of work.

MoneyHelper puts typical hourly rates for one-off advice at £100 to £350. In practice, that's a starting point rather than a ceiling. Advisers with specialist experience, or in more expensive areas like London, can charge £500 an hour or more.

Netwealth's Financial MOT as a fixed-fee option

For those who want a single assessment rather than full ongoing advice, Netwealth's Financial Planning 'MOT' gives you a structured review with a qualified adviser. It covers:

• Whether you're making full use of your ISA and pension allowances
• Modelled projections showing how different choices could play out
• Personalised guidance from a qualified adviser

It's priced as a fixed fee rather than billed by the hour, £400 for an individual or £600 for a joint plan, and doesn't commit you to an ongoing relationship.

Book a free call with an adviser to discuss your Financial MOT.

What ongoing advice and investment advice provide

An ongoing advice relationship monitors your financial plan, adjusts your investment approach as your personal situation changes, and provides the discipline to avoid reactive decisions when markets move.

The value of ongoing financial advice is cumulative. It builds through the right account selection, the avoidance of costly mistakes, and the discipline to hold through volatile markets.

Total cost of ownership: beyond the headline fee

Source: Netwealth

Common fee structures for wealth management include tiered fees based on assets under management (AUM), meaning the fee scales with how much you invest, as well as hourly fees and flat or flat subscription fees. These are often accompanied by underlying fund expenses and transaction costs. A maximum fee or minimum fee may also apply. Always ask for a total cost illustration including invested amounts.

Our CEO Charlotte Ransom explains exactly what an all-in fee covers and how to ask for one in this guide to adviser charges.

Fixed fee vs percentage: which is better

Asset-based fees, or AUM fees, are the most common model, typically charging 0.5% to 2% annually on a tiered basis, with lower percentages applied as portfolio size increases.

Fee-only advisers are paid directly by clients through annual or hourly charges. Fee-based advisers combine fees with commissions on products sold. Understanding which model your adviser uses matters when understanding costs.

Extra fees most investors overlook

• Tax drag from poor account selection creates income tax and capital gains tax liabilities that reduce net returns. A managed portfolio structures assets for tax-efficient investing, avoiding costly mistakes on account selection.
• Underlying fund charges typically range from 0.05% for index funds to over 1% for active funds and are charged in addition to the platform or service fee.
• Transaction costs can range from £0 on commission-free platforms to over £60 per trade, depending on the platform and investment type.
• Performance fees may be charged based on a percentage of returns exceeding a benchmark, often ranging from 10% to 30%.
• Exit fees and transfer charges add to the real cost of switching providers.
• VAT charges apply on some financial advice services and are not always included in quoted rates.

Netwealth's fee structure covers investment management, custody, and transaction costs with no hidden charges.

The fee impact over time: hourly rates and AUM compared

Fees, particularly those based on invested amounts, can significantly impact long-term returns through compounding. A seemingly small annual fee of 1% can reduce total investment value by approximately one-quarter over 20 to 30 years, while a 2% fee can reduce it by more still, depending on the timeframe and underlying returns. 

Analysis by the Institute of Business and Finance shows how fee drag compounds exponentially, with the wealth gap accelerating significantly in the final decade of a long holding period.

On £900,000 invested for 20 years, the fee methodology on Netwealth's fees page uses 5.8% gross annual returns (Risk Level 5 portfolio). 

Source: Netwealth. Based on 5.8% gross annual returns over 20 years. For full methodology see Netwealth fees.

High wealth management fees can significantly erode long-term investment returns, with even a small difference in annual fees of 0.5% to 0.7% potentially leading to substantial losses over time. Investors should critically assess the value they receive for ongoing fees, especially if those fees exceed 1.5%, as investment performance must be consistently superior to average to justify such costs.

Before making any decisions, it is worth modelling what a fee difference actually compounds over your investment horizon. Netwealth's online planning tools let you run those numbers against your own circumstances.

Learn more about the historical performance of Netwealth portfolios; how they’ve outperformed the ARC Private Client Index peer group average since inception in 2016, net of fees. 

How financial advice and a financial plan compound value

Investors working with financial advisers tend to accumulate more wealth over time than those managing their own portfolios. Research by the International Longevity Centre UK and Royal London, based on the Wealth and Assets Survey of Great Britain, found that advised individuals accumulated on average £47,000 more in pension and liquid financial assets than equivalent non-advised peers over a ten-year period, driven by increased saving, greater equity market participation, and better financial discipline. That gap was driven by increased saving, greater equity market participation, and better financial discipline.

The practical difference comes from a personalised financial plan that accounts for tax, account selection, and changing personal circumstances. These are the areas where a DIY approach is most likely to fall short, and where the cumulative value of ongoing advice tends to compound most significantly over time.

Are wealth manager fees worth paying at your level

Below around £50,000, a low-cost index fund through a DIY platform is often the more practical starting point, since there isn't yet the scale to justify a personalised financial plan.

From £50,000, the value of a personalised financial plan and ongoing financial advice starts to build. 

Above £250,000, that value typically exceeds the fee cost outright. 

Above £500,000, you're usually coordinating several things at once, such as ISA strategy, pension drawdown, and estate planning. Without professional support, managing all of that well alongside daily life gets harder.

Compare costs and value with Netwealth

Netwealth offers a free consultation with no obligation, and eligible customers can access our online planning tools free of charge to model their financial position before committing.

Netwealth charges 0.75% per year on Core portfolios of £50,000 and above, reducing to 0.35% at £5 million+. The On-Going Advised service includes a personalised financial plan with a dedicated financial adviser. It starts at 1.10% and reduces at higher portfolio sizes. 

Before speaking to anyone, you can view our fees to compare total costs across service levels, or use our online planning tools to project how your portfolio could grow across different risk levels, timeframes, and contribution scenarios. 

Our financial advisers integrate investment management, tax-efficient investing, and ongoing financial support into one transparent service. 

Speak to our team today and take control of your financial future

Please note: the value of your investments can go down as well as up. Netwealth offers advice restricted to our services and does not provide independent advice across the market. This article doesn't constitute financial advice and shouldn't be interpreted as a personal recommendation.

Frequently Asked Questions

What is a typical wealth management fee?

Wealth management firms typically charge 0.5% to 1.5% per year on invested amounts, with fees decreasing as portfolio size increases. Underlying fund charges of 0.05% to 1%+ and transaction costs sit on top. See Netwealth fees for a full breakdown.

What do ongoing financial advice fees cover?

Ongoing fees pay for regular meetings, a reviewed financial plan, investment management, tax planning, and access to your adviser year-round. They differ from one off advice, which covers a single recommendation at a fixed fee or hourly rate.

Is one- off financial advice worth it?

One off advice provides a specific recommendation at a defined cost, typically £3,000 to £4,000 or charged at hourly rates. It suits investors with a clear, bounded question rather than those who need ongoing portfolio management or a continuously updated financial plan.

How does Netwealth charge for wealth management?

Netwealth charges from 0.75% per year (Core, £50,000 to £249,999) down to 0.35% (Core, £5 million+). The Advised service starts at 1.10%, with no initial advice fee. 
For one-off advice, Netwealth charges £300 per hour, inclusive of VAT, or a fixed fee of £400 for an individual Financial Planning 'MOT' (£600 for a joint plan). 

See our fees for the full schedule.

What is an hourly rate for financial advice?

Hourly rates for financial advice in the UK typically run from £100 to £350 per hour, depending on the adviser's qualifications, location, and the complexity of the work involved. Most advisers use hourly rates for one off advice with a defined scope. Ongoing advice service relationships are almost always charged as a percentage of assets.

What extra fees should I watch for?

Watch for underlying fund charges of 0.05% to 1%+ for active funds, transaction costs of up to £60 per trade, VAT charges on advice fees, performance fees of 10% to 30%, platform exit fees, and any minimum fee or maximum fee caps. Always ask any provider for a full cost illustration before committing to pay fees.

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