How To Check If A Forex Broker Is Licensed

Many financial scams involve unlicensed individuals selling unregistered investments—ranging from stocks, bonds, and oil or gas deals to fictitious instruments, such as prime bank investments. That'southward why it is particularly important to "Ask and Cheque" almost investments and investment professionals before yous invest. Regardless of your trust or ties, or prior dealings with the professional person, practice your homework.

Check Out the Seller

If a salesperson is trying to sell you lot an investment, cheque them out by following these steps.

Step one: Ask "Are you licensed to sell me this investment?"

Legitimate investment professionals—including registered fiscal professionals (also known as registered representatives), investment advisers and insurance agents—must be licensed with the Financial Manufacture Regulatory Authority (FINRA), the Securities and Exchange Commission (SEC) or your state securities or insurance regulator before they can sell you lot anything. If they say they aren't licensed, say proficient good day—and don't buy.

Step ii: Cheque.

If they say they are licensed, check them out as follows:

If They Say They Are a ...	Wait Here	Helpful Hints
Registered Financial Professional person	Visit FINRA BrokerCheck or call FINRA at (800) 289-9999. Also contact your state securities regulator. Bank check SEC Action Lookup tool for formal deportment that the SEC has brought confronting individuals.	If you find the individual on BrokerCheck, click the "More Details" push below their proper name to view their summary study. The summary study provides information on the individual's employment history, qualifications, disclosure events and more than. You tin also download a detailed report on the individual. To translate what yous find, encounter FINRA BrokerCheck Tips below. Utilize both FINRA BrokerCheck and contact your state. There's helpful data in both places.
Investment Adviser	Visit FINRA BrokerCheck or call FINRA at (800) 289-9999. Or, visit the SEC's Investment Adviser Public Disclosure (IAPD) website. Also, contact your state securities regulator. Check SEC Activeness Lookup tool for formal actions that the SEC has brought against individuals.	If y'all notice the individual on BrokerCheck, click the "More Details" button beneath their name to view their summary written report. The summary written report provides information on the individual's employment history, qualifications, disclosure events and more. You can likewise download a detailed study on the individual. To interpret what you observe, see FINRA BrokerCheck Tips below. If you find the firm on IAPD, click on its proper name to view its Form ADV (the investment adviser registration form). For disciplinary information about the business firm, scroll to the bottom of the page, and click "Item 11—Disclosure." If you observe the individual on IAPD, click their name and click this push in the upper right side of the screen: This volition give you information on the private'southward employment history, qualifications, disclosure events and more than.
Insurance Agent	Contact your state's insurance commission—to find yours, visit the National Clan of Insurance Commissioners or telephone call (866) 470-6242.	Requirements and information available vary past state. Exist aware that "captive" agents can sell only the policies and products their company offers. Contained insurance agents typically represent multiple companies.

FINRA BrokerCheck Tips

Here are some helpful tips when checking out a salesperson using FINRA BrokerCheck:

How to search BrokerCheck: You may search for a person by name, CRD/SEC Number, employing firm or zip lawmaking.

If your Search returns too many results: Yous can narrow the search results you go by adding ane or more of the search criteria noted above.

If you don't observe the person in FINRA BrokerCheck (your search comes back as "No Search Results"), it tin mean:

The person's name is misspelled. Y'all tin can refine your search by entering only role of the person's name.
The individual is not included in BrokerCheck or the Securities and Exchange Commission's Investment Adviser Public Disclosure database because he or she:
- is not currently registered with FINRA or a state securities regulator, or has non been so registered within the terminal 10 years; or
- has not been registered with FINRA or a state securities regulator within the terminal 10 years and either:
  - is not the subject of a final regulatory activity;
  - has non been convicted of or pled guilty or no contest to sure crimes;
  - has non been subject to a ceremonious injunction involving investment-related activity or been constitute in a civil courtroom to have been involved in a violation of investment-related statutes or regulations; or
  - has not been named as a respondent or accused in an arbitration or civil litigation in which he or she was alleged to have committed a sales practice violation, and which resulted in an award or civil judgment against the individual.
The investment adviser firm is not within scope for the Securities and Exchange Commission's Investment Adviser Public Disclosure database because the firm is non currently registered with the SEC and/or a land securities regulator or been so registered within the terminal 10 years.

If you are yet not able to notice the person yous're searching for, delight phone call the FINRA BrokerCheck Hotline at (800) 289-9999 and speak with a representative.

Check Out the Investment: Is It Registered with the SEC?

Take these steps to check whether a recommended investment is registered with the Securities and Substitution Commission (SEC):

Step 1: Inquire the person offering the investment, "Is this investment registered with the SEC?"

If the answer is no, inquire why the investment is not registered. Not all securities offerings must be registered with the SEC—such every bit those issued past municipal, state and federal governments. The SEC also provides exemptions for sure intrastate offerings and small public and private offerings nether a dominion known as Regulation D. For more data, read the SEC's Microcap Stock: A Guide for Investors.

Step ii: If yes, then use the chart below to aid you check that this is in fact the instance.

Where to Check	What You Get	Helpful Hints
SEC—EDGAR Visitor Search Telephone call the SEC'due south Office of Investor Instruction and Advancement price-free at (800) SEC-0330 if you lot have trouble using EDGAR or accept questions about a company or investment.	Free public access to corporate data, including registration statements, prospectuses, almanac reports with audited fiscal statements on Form 10-K and quarterly reports on Form 10-Q. Information about contempo corporate events reported on Grade eight-G. Confirmation of whether a company is using an exemption nether Regulation D.	Read the SEC's tips for researching investments using EDGAR and other tools. Be alert to changes in the company'southward proper name and trading symbol, reported through SEC Class 8-Yard. Bank check if the company is filing current reports past looking for a x-K report inside the past year.
Your Country Securities Regulator	Information about the investment beyond registration status, such as whether a promotion appears in violation of land securities constabulary.	Ask if your country regulator is enlightened of whatever issues associated with the company or the type of investment. You lot can as well contact the N American Securities Administrators Association at (202) 737-0900.

Where to Check

What You Get

Helpful Hints

SEC—EDGAR Visitor Search

Telephone call the SEC'due south Office of Investor Instruction and Advancement price-free at (800) SEC-0330 if you lot have trouble using EDGAR or accept questions about a company or investment.

Free public access to corporate data, including registration statements, prospectuses, almanac reports with audited fiscal statements on Form 10-K and quarterly reports on Form 10-Q.
Information about contempo corporate events reported on Grade eight-G.
Confirmation of whether a company is using an exemption nether Regulation D.

Read the SEC's tips for researching investments using EDGAR and other tools.
Be alert to changes in the company'southward proper name and trading symbol, reported through SEC Class 8-Yard.
Bank check if the company is filing current reports past looking for a x-K report inside the past year.

Your Country Securities Regulator

Information about the investment beyond registration status, such as whether a promotion appears in violation of land securities constabulary.

Ask if your country regulator is enlightened of whatever issues associated with the company or the type of investment.
You lot can as well contact the N American Securities Administrators Association at (202) 737-0900.

Proceed in listen that registration with the SEC does not guarantee that an investment volition exist a expert one or immune to fraud. Also, lack of registration does non mean the investment lacks legitimacy. The critical departure is the extreme level of gamble you presume when you invest in a company about which little or no data is publicly available. SEC registration carries a number of advantages for investors, including disclosure of financial and other data that tin can help investors assess whether to invest in a company's securities.

To check out the registration of the following types of investments, follow these steps:

Mutual Funds

Visit the SEC'south EDGAR Mutual Fund Search. If y'all discover the mutual fund in that location, and so it is registered with the SEC.

Variable Annuities

Variable Insurance Products

Visit the SEC's EDGAR Variable Insurance Production Search. If you discover your variable annuity or other insurance product, and so information technology is registered with the SEC.

Exchange-Traded Funds (ETFs)

Substitution-Traded Notes (ETNs)

Closed-end Funds

Visit FINRA Market Information. Click on the link that says Visitor Data in the far left cavalcade to search for your investment. If you lot find the ETF, ETN or airtight-end fund on Marketplace Data, it is registered with the SEC.