8 lines of questioning for your broker

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Sunday, November 15, 2009

1 Are you registered with our state securities regulator? Have you ever been disciplined by the SEC, a state regulator, or other organization (such as the Financial Industry Regulatory Authority or one of the stock exchanges)?
2 How long has your firm been in business? How many arbitration awards have been filed against your firm?
3 What training and experience do you have? How long have you been in the business? What other firms have you been registered with? What is the status of those firms today?
4 Have you personally been involved in any arbitration cases? What happened?
5 What is your investment philosophy?
6 Describe your typical client. Can you provide me with some names and telephone numbers of your long-term clients?
7 How do you get paid? By commission? Amount of assets you manage? Another method?
8 Do I have any choices on how to pay you? Should I pay you by the transaction? Or a flat fee regardless of how many transactions I have?

SOURCE: SEC's investor education Web site, Investor.gov

1	Are you registered with our state securities regulator? Have you ever been disciplined by the SEC, a state regulator, or other organization (such as the Financial Industry Regulatory Authority or one of the stock exchanges)?
2	How long has your firm been in business? How many arbitration awards have been filed against your firm?
3	What training and experience do you have? How long have you been in the business? What other firms have you been registered with? What is the status of those firms today?
4	Have you personally been involved in any arbitration cases? What happened?
5	What is your investment philosophy?
6	Describe your typical client. Can you provide me with some names and telephone numbers of your long-term clients?
7	How do you get paid? By commission? Amount of assets you manage? Another method?
8	Do I have any choices on how to pay you? Should I pay you by the transaction? Or a flat fee regardless of how many transactions I have?