How To Check Your Stockbroker’s Background

Posted by mike

stockbrokerMost investors blindly trust a new stockbroker just because a close friend recommended him. Sometimes it is also because he seemed like a really nice guy at the time. It’s why a lot of consumers fall prey to stockbrokers who cause them to lose their retirement savings. Don’t let this happen to you!

Before you entrust your hard earned money to a stockbroker, investigate his background. Do this by visiting FINRA’s BrokerCheck website and the SEC’s Investment Advisor Public Disclosure website. These websites are open to everyone and they’re 100% free. Best of all, you’ll receive the results of your inquiry in less than five minutes. Indeed, they could be best spent five minutes of your life.

FINRA and the SEC’s web sites will tell you if your broker has a history of disciplinary actions, terminations, customer complaints or bankruptcy. You can also verify that your broker’s licenses are valid and current, learn about his employment history, and more.

While a clean background history does not guarantee your broker will act with honesty and integrity. Investigating the background of your broker will certainly help you avoid working with stockbrokers who have a history of fraud. At the very least, it will give you the opportunity to question your stockbroker about any infractions. Then, you can decide whether or not you want to trust his advice.

FINRA’s BrokerCheck and the SEC’s Investment Advisor Public Disclosure sites are valuable resources every investor should take advantage of.

Don’t Delay in Checking Stockbroker’s Background

Look up your investment advisor for free by visiting these websites now. Finally, you have any trouble with these sites, you can call FINRA at (800) 289-9999, the SEC at (240) 386-4848 and they will walk you through the process.

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