What is a “fee-based” RIA in the context of a Registered Investment Advisor (“RIA”)?

Definition: A fee-based practice is where the revenues of the firm are predominantly generated by client advisory fees, but where some level (typically a minority) of transactional commission revenue is generated as well.

When used in an RIA context: “The financial advisor has a fee-based practice, consisting predominantly (though no exclusively) of client advisory fees.”

See also: Episode #31, fee-only