Joseph Stone Capital Insights: How Investors Can Review a Brokerage Firm

Joseph Stone Capital encourages every investor to research a firm before doing business with it, including us. Public tools make it straightforward to review any brokerage firm or registered representative.

FINRA BrokerCheck. BrokerCheck, run by the Financial Industry Regulatory Authority (FINRA), is free at brokercheck.finra.org. It shows a firm's registration status, its history, and disclosures such as regulatory actions, arbitrations and customer complaints. Investors can look up individual brokers there as well.

SEC Investment Adviser Public Disclosure. For investment advisers, the SEC's Investment Adviser Public Disclosure site provides registration information and Form ADV filings, which describe services, fees and conflicts of interest.

State securities regulators. Each state securities regulator can confirm registrations and may hold additional records.

Questions to ask any firm.

• How are you compensated for the products you recommend?
• What are the total costs and fees for this account?
• Who holds custody of my assets?
• How will you contact me, and how can I reach you?

How to read online reviews. Online reviews of financial firms can be useful, but they are not verified and may reflect one experience. Investors are better served by combining reviews with official records and their own direct conversations with the firm.

Joseph Stone Capital believes informed investors make better decisions, and that reviewing a firm's public record is a sensible first step for any new relationship.

Related Insights: How to check a broker on FINRA BrokerCheck · Reading trade confirmations and account statements · All Insights

Disclosure: This material is provided by Joseph Stone Capital, LLC for informational and educational purposes only and does not constitute an offer to sell or a solicitation of an offer to buy any security. It is not investment, tax or legal advice and does not consider any individual's financial situation or objectives. Investing involves risk, including the possible loss of principal. Private placements and other illiquid investments are speculative, are suitable only for investors who can bear the loss of their entire investment, and may be available only to accredited investors. Past performance is not indicative of future results. Joseph Stone Capital, LLC is a member of FINRA and SIPC. Investors can review the firm on FINRA BrokerCheck.