Investors and consumers alike can be vulnerable to broker misconduct and financial fraud. Practicing financial self–defense is essential to protect yourself from potential pitfalls. But you can take proactive steps to guard against unscrupulous sales activities or deceptive practices.
Weltz Law breaks down the five tips you should know to protect your investments.
1. Get informed — Research Before Investing
Proper due diligence into securities and investments is a critical financial self-defense strategy. That’s why everyone can benefit from taking the time to do their research before investing in any product or service.
Among other steps, this means:
- Noting any associated risks involved in the product or service under consideration;
- Comparing different brokers and accounts;
- Looking into the track record of a company and its management team;
- Understanding various types of fees and expenses;
- Researching trading platforms; and,
- Verifying credentials.
All of this investment homework can help you make informed decisions with your savings and investments.
2. Always Ask Questions — Don’t Be Afraid to Demand Answers or Clarification
Asking questions is a crucial financial self-defense tip when investing and working with brokers. Always be direct, informed, and assertive when approaching potential broker misconduct; never be afraid to insist that they provide clear answers or further explanations on the matter. This can help avoid misunderstandings and may even unearth vital information that secures your finances in the long run.
Furthermore, by voicing your concerns and making your expectations known from the start, you can minimize the risk of future broker misconduct and ensure financial security. Asking questions keeps you informed and builds trust between yourself and the broker.
3. Keep Records — Save All Communications With Your Broker, Including Emails and Phone Calls
An effective financial self-defense strategy for protecting yourself from broker misconduct starts with record keeping. You should save all your communications with your broker, including emails, phone calls, and any other correspondence.
In the event of investigations or disputes, it is essential to have documented references to actions taken, decisions made, and discussions between you and the other party. Keeping records is a protective measure that safeguards you if needed.
4. Report Misconduct — File a Complaint with FINRA
Protecting yourself from broker misconduct is essential for maintaining financial well-being. A crucial part of financial self-defense is filing a complaint with the Financial Industry Regulatory Authority (FINRA) if you suspect any misconduct from your broker.
Complaints to FINRA can help you get restitution and justice if any fraudulent activity has occurred. Moreover, FINRA may take steps to prevent similar misconduct in the future.
5. Find an Advocate - How a Securities Arbitration and Litigation Lawyer Can Help
Finding an advocate can be a powerful tool if you feel your rights as an investor are being violated. Consulting with an experienced lawyer or financial advisor can help protect you from broker misconduct and provide invaluable financial self-defense that may otherwise feel out of reach. An experienced professional can help evaluate your situation, determine the best options, and guide you through dealing with broker misconduct.
Advocating for Investors’ Rights
Taking action to protect your investments from broker misconduct is paramount. Individuals can engage in financial self-defense and safeguard their investments with a few simple steps, such as getting informed, always asking questions, keeping records, finding an advocate, and reporting misconduct.
When working with Weltz Law, you’ll have expertise and experience on your side in matters of investor rights and fraudulent broker conduct. We have successfully litigated claims exceeding $50 million for our clients and want to help with your claim. Ensure you’re getting the best possible support for your claim — reach out to Weltz Law online or by phone today. (877) 905-7671
