Our Writings

Top Ways to Check on your Broker

Top Ways to Check on your Broker

In choosing a broker or Investment Advisor, it’s always wise to do a bit of research on their background.

1. Check licensing and regulatory history
Check the background at http://www.sec.gov/investor/brokers.htm.  Examine:

  • Litigation/regulatory disclosures
  • Whether they are acting as a Registered Rep (broker) or Investment Advisor Rep. A Registered Rep has a “suitability” duty to clients that is much lower than the “fiduciary duty” an Investment Advisor Rep has. Don’t rely on titles- they mean virtually nothing.
  • Experience
  • Registration- Lack of registration would raise a red flag.

2. Check Designations
The array of financial designations is dizzying. However, they are one of the few methods for determining competence, as the actual licensing exams are relatively easy. While designations have widely varying competency standards and rigors, you should confirm that the advisor does, in fact, carry that designation that they represent.

Share this :

Comments are closed.