Who regulates stock brokers/firms?
On the federal level it is the Securities and Exchange Commission. In each state there is someone, usually known as the State Securities Commissioner who has oversight. In addition, the National Association of Securities Dealers is the self-regulatory group for the securities industry. It maintains a database called BrokerCheck that can be very useful to consumers. For example, you can check out an individual or a brokerage firm. For individuals you can find out employment history, all approved registrations, criminal events such as felonies, written consumer complaints and pending civil or regulatory proceedings. Having said all that, it should also be noted, that this information really doesn’t tell you whether the individual provides good advice that will help you make money. It just tells you his history. On the flip side, just because a broker has a clean record, it doesn’t mean he is on the up and up. The best way to find a broker is through a personal referral. For brokerage fir
