A financial consultant is a financial advisor who can audit your current financial situation and make a plan to help you reach your goals. Unlike titles such as Certified Financial Planner (CFP®) and registered investment advisor (RIA), the term doesn’t require certifications or licenses.
What does a financial consultant do?
Financial consultants help people understand their finances and make decisions about saving, investing, retirement planning and more. Some might also offer investment management.
Because this is a title that anyone can use, differentiating between professionals takes some legwork. Where a financial consultant works can be a good starting point.
Banks or brokerage firms. At large financial institutions, financial consultants may be part of sales and customer relationship teams and meet with clients assigned to them. The clients typically already have money at the firm (such as through a brokerage account or workplace retirement account). The financial consultant manages the client relationship through answering questions and providing assistance with transactions or account consolidation.
Financial consultants can provide investment guidance and make recommendations from the firm’s offerings, but they generally don’t provide financial planning or investment management (which may be another tier of service). Financial consultants who sell investment products are required to hold a Series 7 license, and if they offer financial planning and advice, they will need a Series 66 license.
Independent advisory firms. While the title “financial consultant” can be used by anyone, the Chartered Financial Consultant (ChFC®) is a designation that has to be earned (more on that below). At independent firms, financial consultants may have a smaller client list grown through referrals or by actively building their client base. Their interactions with clients may cover more comprehensive financial planning that includes taxes, insurance and estate planning, in addition to investment advice and management.
While financial consultants typically use large financial institutions as custodians to hold client assets, they usually aren’t tied to recommending only that firm’s products. However, some may be registered as broker-dealers in addition to being an advisory firm. If this is the case, this means that they may earn commissions for their recommendations. These potential conflicts of interest are disclosed in a firm’s Form ADV, which is a disclosure document that each firm provides to the SEC that details their services, their clients and more. For each advisory firm you’re considering, you can use this document to do research and ask questions when interviewing potential financial consultants.
Financial consultant vs. financial advisor: Are they different?
No, there’s often no difference between a financial consultant and a financial advisor. In fact, many firms use both terms.
Ultimately, it’s up to the consumer to vet financial professionals they’re considering hiring. We recommend asking about their professional experience and investing strategies, whether they earn commissions, and in what capacities they operate as a fiduciary. You can look up an advisor’s records through the SEC’s IAPD database and FINRA’s BrokerCheck.
One way to simplify the process of searching for a financial consultant is to find a fee-only advisor, meaning they're paid only by clients, not by commissions or other third-party compensation, as can happen with "fee-based" advisors.
» Looking for an advisor? See our picks for the best financial advisors.
What is a chartered financial consultant (ChFC)?
A chartered financial consultant (ChFC) has completed a financial planning program through the American College of Financial Services. ChFCs may offer more specialized services than other financial advisors, such as business or divorce planning. They must fulfill continuing education requirements to maintain their credentials.
Not all professionals who call themselves financial consultants hold a ChFC designation. They may hold another credential (e.g., certified financial planner, or CFP) or none at all. Always ask any potential financial advisor about the specific certifications they hold.
Do I need a financial consultant?
Whether you need a financial consultant depends on your circumstances.
- If you're looking for investing help and have a fairly simple investment portfolio, you could use a robo-advisor as a low-cost way to manage those investments. We have a list of the best robo-advisors to get you started.
- If your investments are somewhat complex or you need help on topics other than investment management — like estate planning, tax help, or paying off debt — it may be worth working with a financial consultant or advisor.
- If you're comfortable researching and managing your own investments, self-directed investing through a brokerage account is another low-cost option. For very simple financial situations, you may not need professional help at all.
It may also be a good idea to get advice from a financial consultant when you experience major life events. Getting married, having a child, receiving an inheritance or changing your job can impact your finances. A professional can help you navigate these changes and make adjustments to your overall financial plan.
» Ready to dive deeper? How to choose a financial advisor
Explore more on
Article sources
NerdWallet writers are subject matter authorities who use primary, trustworthy sources to inform their work, including peer-reviewed studies, government websites, academic research and interviews with industry experts. All content is fact-checked for accuracy, timeliness and relevance. You can learn more about NerdWallet's high standards for journalism by reading our editorial guidelines.
- 1.The American College of Financial Services. Chartered Financial Consultant. Accessed Apr 1, 2026.
