Before you invest with a broker, you'll want to make sure that the broker or brokerage firm is licensed to sell securities and has a clean regulatory record. To learn more about a broker or brokerage firm, check out the Central Registration Depository (CRD), a computerized database with information about most brokers, their representatives, and brokerage firms. The CRD contains details about licensing, past investor complaints or regulatory issues, and brokers' backgrounds.
You can obtain information from the CRD by asking either your state securities regulator or Financial Industry Regulatory Authority (FINRA).
You may want to start at the state level with your research, as your state securities regulator may provide you with more information from the CRD than the FINRA. For contact information on your state securities regulator, go to the "Check the Background of Your Investment Professional" page in the Investor Information section at www.finra.org.
You can also access FINRA’s BrokerCheck service from here, or by calling the toll-free FINRA hotline at 1-800-289-9999.
Complement or compete
Keep in mind that while different disciplines may be in competition with one another, they can complement each other as well.
