Ask and Check (2024)

Check Out the Seller

If a salesperson is trying to sell you an investment, check them out by following these steps.

Step 1: Ask "Are you licensed to sell me this investment?"

Legitimate investment professionals—including registered financial professionals (also known as registered representatives), investment advisers and insurance agents—must be licensed with FINRA, the Securities and Exchange Commission (SEC) or your state securities or insurance regulator before they can sell you anything. If they say they aren't licensed, say good bye—and don't buy.

Step 2: Check.

If they say they are licensed, check them out as follows:

If They Say They Are a ...	Look Here	Helpful Hints
Registered Financial Professional	Visit FINRA BrokerCheck or call FINRA at (800) 289-9999. Also contact your state securities regulator. Check SEC Action Lookup tool for formal actions that the SEC has brought against individuals.	If you find the individual on BrokerCheck, click the "More Details" button below their name to view their summary report. The summary report provides information on the individual's employment history, qualifications, disclosure events and more. You can also download a detailed report on the individual. To interpret what you find, see FINRA BrokerCheck Tips below. Use both FINRA BrokerCheck and contact your state. There's helpful information in both places.
Investment Adviser	Visit FINRA BrokerCheck or call FINRA at (800) 289-9999. Or, visit the SEC's Investment Adviser Public Disclosure (IAPD)website. Also,contact your state securities regulator. Check SEC Action Lookup tool for formal actions that the SEC has brought against individuals.	If you find the individual on BrokerCheck, click the "More Details" button below their name to view their summary report. The summary report provides information on the individual's employment history, qualifications, disclosure events and more. You can also download a detailed report on the individual. To interpret what you find, see FINRA BrokerCheck Tips below. If you find the firm on IAPD, click on its name to view its Form ADV (the investment adviser registration form). For disciplinary information about the firm, scroll to the bottom of the page, and click "Item 11—Disclosure." If you find the individual on IAPD, click their name and click this button in the upper right side of the screen: This will give you information on the individual’s employment history, qualifications, disclosure events and more.
Insurance Agent	Contact your state's insurance commission—to find yours, visit the National Association of Insurance Commissioners or call (866) 470-6242.	Requirements and information available vary by state. Be aware that "captive" agents can sell only the policies and products their company offers. Independent insurance agents typically represent multiple companies.

Find out more about BrokerCheck and get tips on searching for individual or firms.

Check Out the Investment: Is It Registered with the SEC?

Take these steps to check whether a recommended investment is registered with the Securities and Exchange Commission (SEC):

Step 1: Ask the person offering the investment, "Is this investment registered with the SEC?"

If the answer is no, ask why the investment is not registered. Not all securities offerings must be registered with the SEC—such as those issued by municipal, state and federal governments. The SEC also provides exemptions for certain intrastate offerings and small public and private offerings under a rule known as Regulation D. For more information, read the SEC's Microcap Stock: A Guide for Investors.

Step 2: If yes, then use the chart below to help you check that this is in fact the case.

Where to Check	What You Get	Helpful Hints
SEC—EDGAR Company Search Call the SEC's Office of Investor Education and Advocacy toll-free at (800) SEC-0330 if you have trouble using EDGAR or have questions about a company or investment.	Free public access to corporate information, including registration statements, prospectuses, annual reports with audited financial statements on Form 10-K and quarterly reports on Form 10-Q. Information about recent corporate events reported on Form 8-K. Confirmation of whether a company is using an exemption under Regulation D.	Read the SEC's tips for researching investments using EDGAR and other tools. Be alert to changes in the company's name and trading symbol, reported through SEC Form 8-K. Check if the company is filing current reports by looking for a 10-K report within the past year.
Your State Securities Regulator	Information about the investment beyond registration status, such as whether a promotion appears in violation of state securities law.	Ask if your state regulator is aware of any problems associated with the company or the type of investment. You can also contact the North American Securities Administrators Association at (202) 737-0900.

Where to Check

What You Get

Helpful Hints

SEC—EDGAR Company Search

Call the SEC's Office of Investor Education and Advocacy toll-free at (800) SEC-0330 if you have trouble using EDGAR or have questions about a company or investment.

Free public access to corporate information, including registration statements, prospectuses, annual reports with audited financial statements on Form 10-K and quarterly reports on Form 10-Q.
Information about recent corporate events reported on Form 8-K.
Confirmation of whether a company is using an exemption under Regulation D.

Read the SEC's tips for researching investments using EDGAR and other tools.
Be alert to changes in the company's name and trading symbol, reported through SEC Form 8-K.
Check if the company is filing current reports by looking for a 10-K report within the past year.

Your State Securities Regulator

Information about the investment beyond registration status, such as whether a promotion appears in violation of state securities law.

Ask if your state regulator is aware of any problems associated with the company or the type of investment.
You can also contact the North American Securities Administrators Association at (202) 737-0900.

Keep in mind that registration with the SEC does not guarantee that an investment will be a good one or immune to fraud. Likewise, lack of registration does not mean the investment lacks legitimacy. The critical difference is the extreme level of risk you assume when you invest in a company about which little or no information is publicly available. SEC registration carries a number of advantages for investors, including disclosure of financial and other information that can help investors assess whether to invest in a company's securities.

To check out the registration of the following types of investments, follow these steps:

Mutual Funds

Visit the SEC's EDGAR Mutual Fund Search. If you find the mutual fund there, then it is registered with the SEC.

Variable Annuities

Variable Insurance Products

Visit the SEC's EDGAR Variable Insurance Product Search. If you find your variable annuity or other insurance product, then it is registered with the SEC.

Exchange-Traded Funds (ETFs)

Exchange-Traded Notes (ETNs)

Closed-end Funds

Visit FINRA Market Data. Click on the link that says Company Information in the far left column to search for your investment. If you find the ETF, ETN or closed-end fund on Market Data, it is registered with the SEC.

FAQs

How to know if a broker is legit? ›

Visit FINRABrokerCheck or call them at (800) 289-9999 to confirm whether a broker is registered with them. Any registered broker should also display their BSE, NSE, or SEBI registration ID on their websites. If no such ID is displayed, they are suspect.

Discover More ›

How do you know if a financial advisor is legit? ›

Legitimate investment professionals—including registered financial professionals (also known as registered representatives), investment advisers and insurance agents—must be licensed with FINRA, the Securities and Exchange Commission (SEC) or your state securities or insurance regulator before they can sell you ...

Know More ›

How do I know if an investment company is legitimate? ›

Use www.BrokerCheck.finra.org to check if a broker is a licensed or if someone has complained about them. Read about and understand any investment before you give someone your money.

What is a CRD? ›

The CRD contains the registration records of broker-dealer firms, branch offices, and their associated financial professionals, including their qualification, employment, and disclosure histories.

Find Out More ›

Which broker is most reliable? ›

Best Overall - Zerodha

Zerodha, a top discount broker, excels in trading and demat account services. Positive reviews, a user-friendly interface, affordable fees, diverse investment options, and useful features like technical indicators and advanced charting tools make it the best choice overall.

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Which is the most trusted broker? ›

Best Forex Brokers for 2024

IG - Best overall broker, most trusted.
Interactive Brokers - Great overall, best for professionals.
Saxo - Best web-based trading platform.
CMC Markets - Excellent overall, best platform technology.
FOREX.com - Excellent all-round offering.
TD Ameritrade - Best desktop platform, U.S. only.

More items...

Mar 30, 2024

What is the normal fee for a financial advisor? ›

Your adviser's fees will be based on many things: what advice you need, how much time it will take, and the size of the assets involved. Advisers often charge between 1% and 2% of the asset in question (e.g. a pension pot), with lower percentages being charged for larger assets.

How do I trust an investment advisor? ›

An advisor who believes in having a long-term relationship with you—and not merely a series of commission-generating transactions—can be considered trustworthy. Ask for referrals and then run a background check on the advisors that you narrow down such as from FINRA's free BrokerCheck service.

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Is Ask for Funding legit? ›

Our experts compiled a list of some of the most reputable top-tier financial regulators in the following table. Ask Funding is not regulated by any of the above top-tier regulators, therefore we recommend that you avoid it.

Learn More Now ›

What is difference between FINRA and SEC? ›

FINRA primarily regulates brokerage firms and professionals, while the SEC has a broader mandate, overseeing the entire securities industry, including public companies and investment advisors.

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How does CRD work? ›

When you create a new CustomResourceDefinition (CRD), the Kubernetes API Server creates a new RESTful resource path for each version you specify. The custom resource created from a CRD object can be either namespaced or cluster-scoped, as specified in the CRD's spec.

What does FINRA stand for? ›

FINRA FINANCIAL INDUSTRY REGULATORY AUTHORITY is authorized by Congress to protect America's investors by making sure the broker-dealer industry operates fairly and honestly. We oversee more than 624,000 brokers across the country—and analyze billions of daily market events.