Points to keep in mind in order to check your brokers and brokerage firms
The investor can refer to the Central Registration Depository or the CRD in order to access information and every possible detail regarding his broker. This is important for ensuring the safety of your investment. It is a computerized data-base that houses the entire information file about your brokers, along with their representatives and the firms where they are employed.
The manner in which the brokers work along with the credentials are important to ascertain that your money is in safe hands and all you savings are securely traded. Say, if you desire to acquire information whether your broker has a proper license for the state that they are operating in or, if they had any tiff with the regulators, or whether they happened to receive any serious complaints regarding their operation from other investors, one can readily resort to this information source.
The educational background of the broker can also be checked out along with their past employers’ details. The state securities regulator of the Financial Industry Regulatory Authority can also present you with the desired information that you are seeking from the CRD. The investor complaints, if there are any, are important with regard to your objective of ensuring the security of your investment. The North American Securities Administrators Association website can prove to be a great aid in this respect. The telephone number of the BrokerCheck hotline is (800) 289-999.