Usually, yes. Wealth managers typically charge 1%–2%+ a year once you add advice, discretionary management and platform costs, while an independent financial adviser (IFA) often lands around 0.5%–1%. The gap is real, but so is the difference in what each actually does.
The short answer
- Wealth managers are usually more expensive, often 1.5%–2.5% all-in versus roughly 0.85%–1.75% for an IFA route.
- The gap reflects extra service: discretionary management and coordinated planning, not just a higher markup.
- Always compare the all-in cost in pounds, and check whether fees tier down as your pot grows.
On the sticker price, wealth managers are generally the more expensive option, but comparing them fairly means looking past a single headline percentage. An independent financial adviser (IFA) gives whole-of-market advice and arranges your investments, then usually charges an ongoing fee to keep the plan on track. A wealth manager tends to do all of that and run the money for you on a discretionary basis, often on their own platform, with a private-client service wrapped around it. You are buying more, so you generally pay more.
The honest way to answer “which is dearer?” is to add up every layer of cost as a single all-in percentage of your money each year, then weigh it against what the service actually delivers. Two firms quoting “1%” can cost wildly different amounts once platform and fund charges are counted. Our guide to what a financial adviser costs in the UK walks through those layers in detail.
The typical cost gap
As a rough 2026 guide, an IFA’s ongoing advice fee sits around 0.5%–1% a year, with fund and platform costs on top. A wealth manager’s all-in figure, advice, discretionary management, platform and underlying funds combined, more often lands between 1.5% and 2.5%. On a £500,000 portfolio that difference of, say, one percentage point is £5,000 every year, which compounds meaningfully over a retirement.
Illustrative all-in annual cost on a £500,000 portfolio (2026, for comparison only)
| Cost layer | Typical IFA route | Typical wealth manager |
|---|---|---|
| Advice fee | 0.5%–0.75% | 0.75%–1% |
| Discretionary management | Usually none | 0.25%–0.75% |
| Platform / custody | 0.15%–0.30% | 0.20%–0.40% |
| Underlying funds | 0.10%–0.40% | 0.30%–0.75% |
| Rough all-in | ≈ 0.85%–1.75% | ≈ 1.5%–2.9% |
Those bands overlap at the edges, which is the point: a lean, index-led wealth manager can undercut a fund-heavy IFA. But like-for-like, on the same client, the wealth manager’s extra service layer nearly always shows up as extra cost. What you are deciding is whether that layer earns its keep for you.
What the extra buys you
IFA, leaner, advice-led
- Whole-of-market advice and a written plan
- Investments arranged, often in low-cost funds on a third-party platform
- Ongoing reviews, usually annual
- You (or the platform) hold the underlying investment decisions between reviews
Wealth manager, fuller, hands-on
- Everything an IFA does, plus discretionary day-to-day management
- The portfolio is actively steered without asking you each time
- Often bundles tax, estate and investment planning under one roof
- Private-client service, bespoke portfolios, sometimes a named team
Neither model is “better” in the abstract. If your situation is a pension, an ISA and a clear retirement goal, a good IFA can get you an excellent outcome without the wealth manager’s premium, see is a financial adviser worth it? for how to judge value against cost. If you have several million pounds, business interests, trusts or an estate-planning problem that needs joined-up handling, a wealth manager’s coordination can be worth every basis point.
Percentages hide big pound differences
A 1% fee on £1m is £10,000 a year: the same rate that costs £2,000 on £200,000. On larger portfolios, always ask for the fee in pounds and check whether the rate tiers down as your assets grow. Many wealth managers scale their charge on bigger sums; some IFAs offer fixed fees that stop the bill rising with your pot.
Independence matters as much as price
Cost is only half the comparison. Ask whether the firm is genuinely independent (whole-of-market) or restricted to a limited range, some wealth managers primarily use their own in-house funds, which can add cost and reduce choice. A restricted firm is not automatically worse, but you should know, because it shapes both price and what you are recommended. This is one of the checks in judging value across regulated financial advisers generally, and it applies just as much when you compare firms across wealth management more broadly.
- 1
Get the all-in number
Ask each firm for total yearly cost as a percentage and in pounds, including platform and fund charges, not just the advice fee.
- 2
Separate advice from management
Check whether you are paying for discretionary management you will actually use, or paying for it by default.
- 3
Check independence
Confirm whether the firm is whole-of-market or restricted, and whether it favours its own funds.
- 4
Test the tiering
Ask how the fee changes as your portfolio grows, and whether a fixed fee would cost less over time.
Whichever route fits, the firm should be FCA-regulated and happy to put every charge in writing before you commit. Vetted Wealth’s free matching service introduces you to independently vetted, FCA-regulated advisers, including both IFAs and wealth managers, so you can compare cost and service side by side. Advisers serving Devon and Cornwall are covered too. Remember that investments can fall as well as rise; this is information, not personal advice.
In summary
- Wealth managers are usually more expensive, often 1.5%–2.5% all-in versus roughly 0.85%–1.75% for an IFA route.
- The gap reflects extra service: discretionary management and coordinated planning, not just a higher markup.
- Always compare the all-in cost in pounds, and check whether fees tier down as your pot grows.
- Independence and what the service actually delivers matter as much as the headline percentage.
- For a straightforward plan an IFA often wins on value; for complex, substantial wealth a manager can earn the premium.
Sources and further reading
- Financial adviser charges MoneyHelper
- Retail Distribution Review Financial Conduct Authority
Read the full guide
For the complete picture, see our in-depth guide: How to Compare Financial Adviser Fees.
Speak to a vetted financial advisers specialist
This is free information, not personal advice. When you’re ready, we’ll match you with an independently vetted, FCA-regulated specialist, free, and with no obligation.
