Before you agree to use a stockbroker, here's how to check out their history.
This advice comes from the North American Securities Administrators Association.
We know: How to Check Out a Stockbroker or Firm
Who keeps information and records on stockbrokers and brokerage firms?
A stockbroker or any other person who wants to sell securities (for example, stocks, bonds, mutual funds, etc.) must be licensed or registered.
Information on more than 600,0000 licensed stockbrokers and firms is available on a computerized database called the Central Registration Depository system ("CRD"). Every state securities regulator can access the CRD database.
How do I get access to this information?
As an investor, you can request a public report of background information on any stockbroker or brokerage firm. Depending on the state jurisdiction, this report can be obtained either free of charge or for a nominal fee.
What kind of information will I find on the CRD database?
The CRD can tell you a broker's:
What, exactly, can I learn about the disciplinary history of a broker or a firm?
You can learn:
How do I request a report?
To obtain a CRD report, call your local state securities regulator. As a matter of practice, stockbrokers and brokerage firms are not advised of your request. If you need to find out how to contact your state securities regulator, you can call the North American Securities Administrators Association.