You are trying to check out a stockbroker but don’t know where to start. Well, one good place is the National Association of Securities Dealers.
The Association’s Broker Check contains registration and licensing information on over 850,000 individuals and 6,000 brokerage firms. It’s fast and easy to use. For all brokers registered with the Association, you can obtain employment history for the past 10 years, criminal charges or convictions, regulatory actions taken, written complaints from consumers and a whole lot more.
One important factor is the broker’s disciplinary history. While it’s not unusual to have a couple of complaints over a long career, there should be a red flag if there is a pattern of complaints.
Then check employment history, moving from firm to firm, as it could be a warning sign. Be careful because while the report can give good info, a clean record is no guarantee that your broker is on the up and up.
For more information go to http://www.nasd.com/AboutNASD/index.htm.