What Are the Differences Between Financial Advisors and Investment Bankers?

Who Is an Investment Banker?

Who Is a Financial Advisor?

Investment Banker Vs Financial Advisor - What Is the Difference?

Sub Headings

Investment Banker

Financial Advisor

Job Roles

Manages investment procedure, including monetary risks, merger and acquisition process and other services that help finish these transactions.

Focuses on providing clients with the best financial advice that meets their needs depending on factors like current salary structure, income prospects, retirement planning, various loans etc.

Client Stature

The clients of investment bankers are usually big corporations and governmental institutions.

There is no certain specification for their clients. It can be anyone from average people to retired individuals.


Has different departments for underwriting, sales and trading, equity research, asset management, mergers and acquisitions, etc.

They concentrate on your income structure, investment risk factors, financial planning, etc., to come up with the most suitable choice.

Fee Structure

Comprises of monthly fees, closing fees and the amount of equity earned throughout the deal. It might also depend on their services.

Mostly they work on commissions from the third party where the clients get their investments.

Types of Investment Banker:

Types of Financial Advisors

Which One Is Better Financial Advisor or Investment Banker?

FAQs on Financial Advisors vs Investment Bankers

Are financial advisors bank employees?

Many banks have financial advisors who suggest and sell investment options to clients. They also provide financial strategies to the consumer to opt for the right one.

Whom to consult to get home loans?

Financial advisors deal with individual monetary planning. They can assist you in applying for a home loan with minor risk factors that match your budgetary limit.

Do banks offer financial advisors?

Financial advisors work with financial institutions as well as independently.

When should I hire an investment banker before selling my business?

Selling a company can be a time consuming and tedious task for many. Having a proficient investment banker for this is advisable to ensure a successful outcome. Hence if you are planning to sell it within 6 to 12 months you should start looking for one immediately. If it is in the next 1 to 5 years or so, you have enough time to hire one.

For what purposes should I hire an investment banker?

You can look for an investment banker while receiving attractive offers from an unsolicited company, if you have too many financial things to handle, an internal transition or expansion of ownership group etc.