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424-835-5733 | 310-525-3516

You may have lost money in your investment portfolio,
due to mismanagement and not even know it.

How can I protect myself from stockbroker fraud

If you plan to invest your money into the stock market, you need to make sure you are aware of all of the risks you face. Besides the volatility of the markets, you also have to protect yourself from fraud. You rely on stockbrokers and financial advisors to help you to navigate through the markets in hopes of making the best returns. As natural as it may be for you to trust these individuals, you should be aware that some stockbrokers do not have your best interests in mind.

Do your homework

Do not choose a stockbroker or financial advisor blindly. You should take some time to research your options so you end up choosing a professional who you can trust with your money. Check their personal and professional references, the reputation of the company they represent and their professional portfolio.

Thoroughly read through all agreements

Before a stockbroker agrees to work with you, they have you sign various documents for your protection. You should carefully read through all paperwork before you sign anything or you risk signing away your rights. Once you sign, these documents become legally binding.

Know what you are getting into

Although the majority of brokerage firms in the country are regulated by several federal agencies, you should make it your business to learn what you are getting into. Do not assume that your money is automatically protected if your stockbroker steals from you. According to, financial protections are only in place to protect you from brokerage firm failures.

Maintain access to your accounts

Do not neglect your accounts and take your broker’s word for what is going on with them. Maintain access to your accounts so you can check your funds and many of your broker’s actions.

It is not always possible to predict the credibility and honesty of a stockbroker. However, taking some precautions before you start working with one can keep you from becoming a victim of investment fraud.

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