Top 3 Reasons to Check Your Stockbroker

Whether you are new to investing and shopping for a stockbroker or are a seasoned investor who has been working with the same financial advisor for years, it’s always important to educate yourself about who your broker is and how they conduct business. 

There are many different reasons why you should check your broker, but you can continue reading to learn about the top three reasons why you need to know as much as possible about your financial advisor.

Your Money Is on the Line

You are your own best advocate. When you’ve put a substantial amount of money on the line, it’s important that you know who is handling your money. You wouldn’t trust any old stranger with hundreds of thousands of dollars or more with your money. Why should you trust a financial advisor you just met? The answer is, you shouldn’t. 

BrokerCheck is a great tool to use where you can take a closer look at your broker’s history. This record contains information about how long a broker has been working in the financial industry, and any criminal record they may have, disclosures/complaints that have been made against them in the past, and how these complaints were resolved, among other things. 

Although BrokerCheck doesn’t provide you with all the information you could want to know, it does give you a better idea of what your broker’s career in the industry has been like. 

You Aren’t Your Broker’s Only Client

Most financial advisors have many different clients they work with, and though checking your broker won’t divulge who their other clients may be, it can give you some insight into what financial institutions your broker has worked for in the past, the reputations of those brokerage firms, and whether the broker was involved in any larger schemes in the past.

Your Company Needs Quality Brokers

Another reason to always check a broker is if you are a brokerage firm or investor looking for a talented financial advisor to hire. Using their BrokerCheck records can give you a unique insight into their previous experience. It gives you a chance to directly ask brokers about what information you may have discovered on their BrokerCheck records as well. 

Although they will surely have a plausible explanation, you can use your judgment to get a better idea of what disclosures may have occurred in the past, how they were resolved, and whether a potential broker’s conduct had anything to do with a client’s losses. Only after thoroughly researching a broker will you have a better understanding of how they might conduct themselves if working with or for you.

Contact a Stockbroker Misconduct Lawyer

If you have discovered concerning information about your stockbroker, and you suspect that they could be responsible for stock losses you endured, reach out to an experienced stockbroker misconduct lawyer at Wolper Law Firm, P.A.. You can reach us by phone at 800.931.8452 or through the quick contact form below when you are ready to schedule your free, no-obligation consultation.

Attorney Matthew Wolper

Attorney Matthew WolperMatt Wolper is a trial lawyer who focuses exclusively on securities litigation and arbitration. Mr. Wolper has handled hundreds of securities matters nationwide before the Financial Industry Regulatory Authority (FINRA), American Arbitration Association (“AAA”), JAMS, and in state and federal court. Mr. Wolper has handled and tried cases involving complex financial products and strategies ranging from traditional stocks and bonds to options, margin and other securities-based lending products, closed/open-end mutual funds, structured products, hedge funds, and penny stocks. [Attorney Bio]