BrokerCheck by FINRA: A Comprehensive Guide

Investing your hard-earned money is a significant decision that can yield substantial returns or significant losses. With so many options and financial advisors available, it’s essential to research and choose the right one to manage your investments. The Financial Industry Regulatory Authority (FINRA) provides an essential tool for investors to make informed decisions – BrokerCheck. In this article, we’ll provide a guide to BrokerCheck, how it works, and how to use it to protect your investments.

What is BrokerCheck?

BrokerCheck is an online tool provided by FINRA that allows investors to research financial professionals’ backgrounds and find information about investment firms. The tool is accessible to the public and provides valuable information about the financial professionals’ qualifications, employment history, and any disciplinary actions or customer complaints.

Why is BrokerCheck Important?

Investing in the stock market can be complex and challenging, and investors must have confidence in their financial advisors. BrokerCheck is a valuable tool that helps investors make informed decisions by providing information about the advisors’ background and history. This information can help investors determine whether a particular advisor or investment firm is the right choice for them.

How does BrokerCheck Work?

BrokerCheck is a free online tool that anyone can access. You can search for financial professionals by their name or the name of their firm. The tool provides essential information about the financial professionals’ qualifications, employment history, any disciplinary actions, and pending and resolved customer complaints. Keep in mind that pending customer complaints and disciplinary actions are just that – pending. Those are allegations that are unproven. Advisors are required by FINRA rules to report allegations and claims, even if they have not been proven.

How to Search for a Broker or Investment Advisor

Searching for a broker or investment advisor on BrokerCheck is simple. Here are the steps to follow:

  • Visit the BrokerCheck website at
  • Enter the name of the broker or investment advisor you want to search for in the search bar.
  • Click on the search button.
  • The tool will generate a report that provides essential information about the broker or investment advisor.
  • Understanding BrokerCheck Reports

Here’s what you can expect to find in a BrokerCheck report:

  • Registration Information: This section provides information about the financial professional’s registration, including their current and past employment history, licenses, and exams.
  • Disciplinary Information: This section provides information about any disciplinary actions taken against the financial professional, including fines, suspensions, and revocations.
  • Customer Disputes: This section provides information about any customer complaints filed against the financial professional and how they were resolved.
  • Additional Information: This section provides information about any additional information that the financial professional has disclosed, such as bankruptcy filings, criminal charges, or liens.

Tips on How to Interpret BrokerCheck Reports

The report might be a bit confusing to those who are not familiar with the financial industry. Here are some tips on how to interpret BrokerCheck reports:

  • Look for red flags: Pay close attention to any closed disciplinary actions or customer complaints. If a financial professional has a history of customer disputes or disciplinary actions, it’s a red flag and may indicate that they’re not a good fit for you. Keep in mind that if a dispute is not resolved, it was not proven to be true, and it is only an unproven, unsworn allegation by an unidentified customer.
  • Check for accuracy: Verify the accuracy of the information on the report. If you find any errors, contact FINRA to have them corrected.
  • Read the report carefully: Read the report carefully and pay attention to any details that may impact your decision to work with a particular financial professional.

How to Protect Yourself from Investment Fraud

Investment fraud is a real concern for investors. Here are some ways to protect yourself from investment fraud:

  • Research financial professionals: Use BrokerCheck to research financial professionals you’re considering working with. Look for any red flags, such as disciplinary actions or customer complaints.
  • Be skeptical: Be skeptical of any investment opportunity that seems too good to be true. If it sounds too good to be true, it probably is.
  • Ask questions about the investment opportunity and the financial professional offering it. It may be a red flag if they’re hesitant to answer your questions or provide details.
  • Be cautious with your money: Don’t give out your personal information or invest your money without doing your research first.

How to File a Complaint with FINRA

If you have a complaint about a financial professional, you can file a complaint with FINRA. Here’s how to file a complaint:

  • Visit the FINRA website at
  • Click on the “File a Complaint” link.
  • Fill out the complaint form and provide as much detail as possible.
  • Submit the form.

Final Thoughts

BrokerCheck by FINRA is a valuable tool that can help investors make informed investment decisions. By using BrokerCheck to research financial professionals, compare different financial professionals, and protect yourself from investment fraud, you can feel confident that your investments are in good hands. Remember to always do your due diligence and research before making any investment decisions, and use BrokerCheck reports as one factor in your decision-making process. With the right tools and knowledge, you can make smart investment decisions that will help you achieve your financial goals.