What is Broker Check: Definition and How It Works

What Is BrokerCheck: Definition and How It Works

By Scott Levine – Updated Dec 30, 2024 at 12:40 PM

Key Points

BrokerCheck offers detailed profiles of financial advisors and firms, including registration and disciplinary history.
It is a free resource by FINRA that ensures privacy for users checking financial professionals.
The tool aids in risk mitigation by informing investment decisions through comprehensive reports.

Providing insights into the backgrounds and experiences of financial advisors, brokers, and firms, BrokerCheck is a free tool that the Financial Industry Regulatory Authority (FINRA) provides to the public.

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Two people consulting with an advisor inside an office. — Image source: Getty Images.

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For brokerage firms, a BrokerCheck report provides brief overviews of the firms and their backgrounds. The report also provides insight into where and when the firms were established, as well as the identities of investors who possess controlling shares or have direct influence in the firm's operations. Information regarding any mergers, acquisitions, or name changes that have affected the firm is included. FINRA also notes that BrokerCheck reports offer a section that lists a firm's active licenses and registrations, the types of businesses it conducts, and other details pertaining to its operations. Lastly, there is information about any arbitration awards, disciplinary actions, and financial matters connected to the firm's record.

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About the Author

Scott Levine is a contributing Motley Fool stock market analyst covering energy, industrials, technology, and materials. He is also a high school English teacher and a small business owner. He holds a bachelor’s degree in English and creative writing from Binghamton University, a master’s degree in secondary education from Adelphi University, and an advanced certificate in school building leadership from CUNY Queens College. A crossword puzzle enthusiast, he has solved more than 3,100 New York Times puzzles with a 97% solve rate.

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