Three Things to Consider Before Trusting a Financial Advisor

Jul 20, 2015, 15:54 ET from USA.gov

WASHINGTON, July 20, 2015 /PRNewswire-USNewswire/ -- Do you use or have you ever considered using a financial advisor to help you make money decisions? Before you turn over your hard-earned cash, you can learn the signs of investment fraud and find out how to check the background of your financial advisor.

Here are some tips from USA.gov:

1. Be wary of common fraud phrases

Pay attention if an investment advisor or promoter uses the following vocabulary:

  • risk free
  • guaranteed earnings
  • quick profits
  • the investment is government approved
  • limited-time offers

2. Check the background of your financial professional

Looking into the background of a financial advisor is one of the most important steps an investor can take toward protecting their assets.

The Commodity Futures Trading Commission (CFTC) recently launched SmartCheck.gov to help you check the background of financial professionals. It is an easy and free tool, requiring no usernames or passwords.

3. Research and report investment fraud

You can find information on brokers or file complaints with a few sources:

If you would like financial compensation for your losses, you may want to seek legal action or go through a dispute resolution program.

To learn more about recognizing investment fraud and researching your financial advisor, watch the recording of a Google Hangout with the editor-in-chief of the Consumer Action Handbook and a CFTC representative.

To learn about more topics, visit USA.gov and GobiernoUSA.gov, the U.S. government's official websites in English and in Spanish.

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SOURCE USA.gov



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