Financial Analyst vs. Financial Advisor

There are two main categories of financial analysts: sell-side analysts and buy-side analysts. Sell-side analysts help their clients evaluate and sell their investment products whereas buy-side analysts devise investment strategies for institutional investors that are looking to invest their money.

A financial advisor is a financial expert that provides guidance to clients. They are often independent practitioners who work with clients in a fiduciary capacity. After consulting with a client about their goals and evaluating their financial health, they educate the client about options and create a plan.

Private bankers can be considered a type of financial advisor whose primary responsibility is managing the investments of high-net-worth individuals.

There are many differences between a financial analyst and a financial advisor.

Here are the key differences between a financial analyst and a financial advisor:

• A financial analyst is more of a research-based position

• A financial advisor is more a client-centered position that is focused on relationship management

• A financial analyst will examine the financial health of their client and broader financial factors in the economy and base their recommendations on these findings

• A financial advisor looks more at the goals of their client and their current capabilities

• A financial analyst generally earns a salary from their employer

• A financial advisor typically earns their paycheck based on fees and commissions