What Does My Broker Need to Know About Me?

I know avoiding securities fraud has a lot to do with finding out more about my broker, but what does my broker or financial advisor actually need to know about me?

This is an excellent question. We often put so much emphasis on the responsibilities of your stockbroker or investment advisor that we forget to remind investors that they, too, have a responsibility. In order to fulfill his or her duties and help you make the right decisions, your broker needs some honest information about you, too. Communicating clearly with your broker about your needs helps you avoid securities fraud because you are opening a dialogue and making your financial boundaries clear.

Make sure that you take a little time to talk to your broker or advisor about your:

  • Investing experience
  • Risk tolerance
  • General financial situation
  • Financial and investment goals

Be honest, and keep your broker or advisor in the loop if something changes. If you don’t feel like you can discuss these things with your broker or advisor, then you should probably consider finding someone you are more comfortable with. Try meeting with several professionals in person, and talk about their investment strategies and experience with situations similar to yours.

If believe you have suffered investment losses because a broker did not act in your interests or lured you into an investment scam, speak with an experienced securities fraud lawyer today. Our securities fraud attorneys would be happy to meet with you in a completely free, no-pressure legal consultation to talk about your options.