Quick answer
Search the person and their firm on Investor.gov, which routes you to the SEC's Investment Adviser Public Disclosure (IAPD) database or FINRA's free BrokerCheck. Confirm they are registered, read any disclosures, and reach the firm only through contact details you found yourself [1] [2].
Key points
- In the US, much investment fraud is committed by people who are not licensed or registered.
- Investor.gov's search tool covers investment advisers (via IAPD) and brokers (via FINRA BrokerCheck), free of charge.
- A BrokerCheck report shows registrations, about 10 years of employment history, exams passed and disclosures such as customer disputes.
- If you cannot find someone, that may mean they are not registered — ask the firm and your state securities regulator.
- Imposters copy real professionals' names, so contact the firm using details from its Form CRS or official website, not the message you received.
#Why should you check a broker before handing over money?
A broker buys and sells investments for you; an investment adviser is paid to give advice about investments. Both must normally be registered with a regulator. Investor.gov, the investor education site of the U.S. Securities and Exchange Commission (SEC), puts the risk bluntly: "Unlicensed, unregistered persons commit much of the investment fraud in the United States" [1].
The SEC calls registration "the most important question" to consider before hiring an investment professional — is the person registered with the SEC or with a state securities regulator [3]? A friendly manner, a polished website or impressive initials after a name do not answer that question. Investor.gov even warns: "If a broker or adviser has initials after their name, don't assume that makes that individual more qualified than another" [3].
#Which free databases should you use?
You only need to remember one starting point. Investor.gov has a free search box: type a name and it sends you to the SEC's Investment Adviser Public Disclosure (IAPD) website, or, if necessary, to BrokerCheck, the site FINRA runs for broker-dealers [1]. FINRA, the Financial Industry Regulatory Authority, is the self-regulatory organization that oversees US brokerage firms.
BrokerCheck itself is "a free tool from FINRA" for researching investment professionals, brokerage firms and investment adviser firms [2]. The IAPD site covers investment adviser firms regulated by the SEC and/or state securities regulators [4]. Some professionals work in both roles, so the same name can appear in both databases.
| Tool | Run by | Use it for | Cost |
|---|---|---|---|
| Investor.gov search box | SEC | Single starting point; routes you to IAPD or BrokerCheck | Free |
| IAPD (adviserinfo.sec.gov) | SEC | Investment adviser firms and their representatives | Free |
| BrokerCheck (brokercheck.finra.org) | FINRA | Brokers and brokerage firms; also shows adviser data | Free |
| SEC Action Lookup – Individuals (SALI) | SEC | People named in SEC actions, useful when the main search finds nothing | Free |
#How do you run the check, step by step?
Investor.gov's own bulletin walks through the search in four moves: choose "individual" or "firm", type the name, review the list of matches, then click a name to see registration status and disciplinary history [5]. The steps below add the checks that matter most for a beginner.
A five-minute background check
Search the person and the firm separately
On Investor.gov, choose "individual" and type the person's name, then repeat with "firm" for the company. Match the employer and location shown to what you were told.
Confirm current registration
Look for an active registration, not just a past one. A person who left the industry years ago may still appear, but they should not be selling to you today.
Read the disclosures section
If the result says "Disclosures Reported", open it. It may list customer disputes, regulatory actions, terminations or financial matters.
Scan the employment history
Note how many firms the person has worked for and whether any of them was expelled from the industry.
Contact the firm independently
Look up the firm's phone number on its Form CRS or official website and call to confirm the person works there. Do not use a number or link from the message that contacted you.
#What does a BrokerCheck report show?
FINRA says a report on an individual includes a summary, a registration history covering current and past firms and roughly the last 10 years of employment, a qualifications section listing current registrations or licences, and a disclosure section covering "customer disputes, disciplinary events and certain criminal and financial matters" [2]. Information about people stays in BrokerCheck for 10 years after their registration ends [2].
Worked example
Reading a hypothetical employment history
You check a broker in 2026. The report lists four firms in the last 10 years: 2016–2018, 2018–2019, 2019–2021 and 2021–2026.
- History window shown (2026 − 10)
- 2016 to 2026
- Years at each firm
- 2, 1, 2, 5
- Total years covered (2 + 1 + 2 + 5)
- 10
- Average time per firm (10 ÷ 4)
- 2.5 years
- If they left the industry in 2026, listed until (2026 + 10)
- 2036
Moving firms is not wrong in itself. What matters is why: check whether any move lines up with a disclosure, a termination, or a firm that was later expelled.
Hypothetical figures for illustration, calculated with Python.
#Which findings are red flags?
The SEC lists the background items that should make you slow down: disciplinary actions by a government regulator or a self-regulatory organization such as FINRA, "A history of customer complaints", lawsuits or arbitration claims brought by customers, and employment with firms that have been expelled from the securities industry [6]. It also advises caution about investing through anyone who has been convicted of a crime [6].
A disclosure is not automatic proof of wrongdoing — some disputes are settled or denied — but it is a reason to read the details and ask questions. Investor.gov notes that "Disclosures Reported" means the person has a disciplinary history, and "It may be helpful to understand what the history is" [5].
#What if you cannot find the person at all?
According to Investor.gov, "If you can't find the individual or firm you are looking for, it may mean that they are not a registered financial professional" [5]. Try spelling variations and the firm name, then ask the firm directly about the person's registration, or contact your state securities regulator [5]. If someone offering you an investment cannot be found anywhere, treat that as a serious warning sign — see common investment scams.
#How do imposters fake a clean record?
A clean report only helps if it belongs to the person you are actually dealing with. FINRA warns that scammers take the name and public details of a real registered professional to build a fraudulent website, and may even create "a fake version of a public FINRA BrokerCheck report" [7]. Its advice is to research professionals "by going directly to the sources" and to call the firm "using a phone number on their Form CRS or their public website" rather than one given in the solicitation [7]. Form CRS is a short relationship summary every registered firm gives clients — more on it in what a fiduciary is.
Safer vs riskier ways to verify
Safer
- Type brokercheck.finra.org or investor.gov yourself
- Call the number on the firm's Form CRS or official site
- Compare the report you pulled with any documents you were sent
Riskier
- Click a BrokerCheck link sent in a message
- Call the number in the email or chat that contacted you
- Accept a PDF "report" as proof of registration
Common beginner mistakes
Checking the firm but not the person
A well-known firm can still employ someone with a troubled record, and imposters often borrow real firm names. Search both.
Trusting a link someone sent you
Fake websites and fake BrokerCheck reports exist. Type the database address yourself every time.
Stopping at "registered"
Registration is the minimum. Read the disclosure section and employment history before deciding anything.
Treating titles as proof
Initials and job titles such as "wealth manager" are not registrations. Only the regulator's database confirms registration.
What's the bottom line?
Checking a broker or adviser is free and takes minutes: start at Investor.gov, read the IAPD or BrokerCheck report, look closely at disclosures and employment history, and confirm the person through the firm's own published contact details. It will not tell you whether an investment will do well, but it can stop you from handing money to someone who should not be holding it. Next, learn what SIPC protection does if a registered brokerage firm fails.
Frequently asked questions
Is BrokerCheck free to use?
Yes. FINRA provides BrokerCheck to the public at no charge, and the Investor.gov search tool is free as well.
Does a clean BrokerCheck report mean the investment is safe?
No. A clean record tells you about the person's history, not about the investment they are offering. Every investment can lose value, so you still need to understand what you are buying, what it costs and how it fits your plans.
What is the difference between BrokerCheck and IAPD?
BrokerCheck is run by FINRA and focuses on brokers and brokerage firms, while IAPD is the SEC's database for investment adviser firms and their representatives. Investor.gov's search box sends you to whichever one fits the person you search for.
What should I do if someone I invested with is not registered?
Stop sending money and keep every record of your communication. Ask the firm about the person's registration and contact your state securities regulator, which is where Investor.gov points people who cannot find a professional in its search.
Sources
Grade A = primary source (regulator, government agency, official rulebook or the index provider's own documents). Numbers in brackets in the text point here.
- U.S. SEC — Investor.gov. Check Out Your Investment Professional (2026). Accessed 2026-10-03.A
- FINRA. About BrokerCheck (2026). Accessed 2026-10-03.A
- U.S. SEC — Investor.gov. Working with an Investment Professional (2026). Accessed 2026-10-03.A
- U.S. SEC. Investment Adviser Public Disclosure (2026). Accessed 2026-10-03.A
- U.S. SEC — Investor.gov. How to Use the Investment Professional Search Tool on Investor.gov (2026). Accessed 2026-10-03.A
- U.S. SEC — Investor.gov. Investor Alert: Check the Background of Anyone Selling You an Investment (2026). Accessed 2026-10-03.A
- FINRA. Be Alert to Signs of Imposter Investment Scams (2026). Accessed 2026-10-03.A
This page is general education, not personal financial, tax or legal advice. Figures in worked examples are hypothetical and calculated before taxes and fees unless stated. Rules and limits change; check the linked primary sources for the current version. How we check every page.
