Between TV commercials featuring “real women” who use tried-and-true drugstore staples to star-studded magazine ads hawking high-end department store skincare brands to the vast wall of information-packed pamphlets at your doctor’s office exalting the benefits of pharmaceutical-grade beauty breakthroughs, figuring out which cosmetic products are worth spending your hard-earned money can be confusing.

Your first step in making your perfect product matches is understanding the differences between each category. However, the right products—whether over the counter (OTC), cosmeceutical, or pharmaceutical—are the ones that have the right ingredients.

Over the Counter (OTC)

The majority of creams, serums, and body products on the market fall into this category. Quite simply, they’re the products you’ll find readily available at your local drug or department store. OTCs can range in price from cheap to very expensive, but generally will contain a similar concentration of ingredients (up to 70% pure ingredients per FDA regulation). Because OTC products must fit most skin concerns, they will not contain many active ingredients and often contain inactive compounds, fragrances and preservatives.

Cosmeceuticals

This category includes cosmetic products containing active ingredients that are known to be beneficial in some way. For example, vitamin C is a known antioxidant, and when it is added to a lotion or a cream, it is considered a cosmeceutical. Same goes for products with ingredients like marine extracts or peptides.

Pharmaceuticals

Essentially, the product is either classified as a drug or as a cosmetic. The pharmaceutical category might have the fewest offering of the bunch (only about 5% of skincare products are considered pharmaceutical-grade), but they are also some of the most effective. Pharmaceutical skincare products are available only through a licensed professional. They’re also FDA-regulated, must contain 99.9% pure active ingredients, must be backed up by scientific studies, and must demonstrate beneficial effect on a function or structure of the skin. In other words, they gotta get the job done when it comes to reducing wrinkles, diminishing the appearance of brown spots, providing hydration, and improving other functions of the skin.

So what is the difference between OTC and Pharmaceutical skin care and which is best? The major difference is potency or strength and the mixture of the right active ingredients.

Another difference is that unlike OTC products, where a consumer can self-diagnose when choosing a skin care product, pharmaceutical skin care product must be selected for you.

While pharmaceutical products will likely give you the best results, there are a number of good cosmetic and cosmeceutical products on the market. You have to know the ingredients and have realistic expectations.