How to Know Your Broker is Legit

In today’s world, there are many brokers who are not legit and many investors find themselves in their hands and end up losing a lot of money. Sometimes it is very difficult to know who is a legit broker and who is not. As an investor, it is good to check out the broker and their films before doing business with them. Below I have provided you with some steps to prove the legitimacy of a broker.

Research
When you're doing your research, first search the web with the broker and firm name you are dealing with. This might help you to get media reports of alleged wrongdoing or disciplinary action, background information among other details will help you determine the legitimacy of your broker. 

Beware of cold contacts
Beware of any broker who contacts you unsolicitedly from a company with which you have never done business before. Those contacts could be in the form of phone calls, emails or letters. If you see this just know that, the Broker is not legit.

Have a Conversation
You need to be comfortable with the person who will be providing you with advice about investments. If you want to be comfortable with your broker have a good conversation with him or her. Ask a lot of questions about what the company offers and experience with clients who have similar needs to your own.

Check your Statements 
You need to be checking your statements carefully, whether you're receiving them online or in print, regularly. This can help you to detect wrongdoing or even mistakes early on. Ask questions if your investment returns aren't what you expected or if there are any changes. If you can't get a straight answer, ask to speak to someone higher up.

- Edited by Emomeri Maryanne