You may want to ask a broker you’re
considering for a list of clients who would be willing to act
as references — though brokers aren’t legally required
to give you these names. If the broker provides a list, you’ll
want to follow up by asking the references if they’re satisfied
with the kind of advice they’ve been given and the clarity
of the broker’s explanations.
You may also want to contact the organizations
that track brokers and firms for regulatory violations or disciplinary
actions that securities regulators have taken against them. One
source is the
Financial Industry Regulatory Authority (FINRA), which can tell you if any regulatory agency has
disciplined a broker or firm.
You can also check with your state for client
complaints filed against a broker or firm. However, the report
may include both substantiated and unsubstantiated claims.
