CRD stands for Central Registration Depository, which is a database that holds information about brokers and brokerage firms. Every stockbroker (“registered representative”) licensed to sell securities in this country has what is a called a CRD number. Although the CRD report is not all inclusive—and can sometimes be incomplete—it does include certain information about:
- Professional background
- Disciplinary actions
Each broker and brokerage firm is required to disclose certain information during the licensing and registration process and is assigned a CRD number.
Why Do I Need a Broker's CRD Number?
We repeatedly recommend that individual investors do their research before handing over your life savings to an investment professional. Just a little extra time invested in research can go a long way toward reducing the chance that you will become a victim of investment fraud.
Not sure where to start? Keep in mind that a big part of that research is checking up on your broker or brokerage firm so that you know you are dealing with someone who is is properly registered and does not have a history of disciplinary actions or complaints. One of the best ways to do this is by obtaining your broker’s CRD number.
You can use a broker’s CRD number to:
- Confirm whether a broker is registered in your state
- Learn what licenses they possess
- Find out if there are customer complaints against that representative or his or her brokerage firm
- Find qualifications
- Review employment information
How Do I Find Information with FINRA’s BrokerCheck?
- Step 1: Go to FINRA’s BrokerCheck site.
- Step 2: Click “Start Search.”
- Step 3: Agree to the Terms & Conditions, and click “Continue.”
- Step 4: Type in your broker’s CRD number or the name of your broker or brokerage firm, and click “Start Search.” You will probably be asked to enter some numbers or letters to verify that you are a human—this simply helps FINRA prevent unauthorized access.
- Step 5: Locate your broker or firm in the search results, and click on his or her name.
- Step 6: You’re done! You should now be able to view your broker’s name, CRD number, employment history, qualifications, disciplinary disclosures, etc.
Have more questions? Think you might have an investment claim? Contact us! We offer free and private consultations. Reach our investment fraud attorneys at (888) 390-6491.