When selecting a broker or investment advisor, research the person's education and professional history as well as the firm they work for. Ask:

• Have they worked with others who have circumstances similar to yours?


• Are they licensed in your state? Your state securities regulator lists individuals and firms that are registered in your state. Ask if the regulatory office has any other background information.


• Have they had any run-ins with regulators or received serious complaints from investors? Call your local state securities regulator. You can also check out the database of disciplinary actions maintained by the Securities Exchange Commission and the NASD. The database is online at www.sec.gov/investor/brokers.htm or call NASD at 1-800-289-9999.


• How are they paid? Is it an hourly rate, a flat fee, or a commission that depends on the investments you make? Do they get a bonus from their firm for selling you a particular product?


• What are the fees for setting up and servicing your account?

If you are seeking more information or have an investment advisor problem that you are unable to resolve directly, you can contact the SEC or the NASD.

Additional organizations that could also be helpful are:

• www.Bankrate.com offers a semi-annual rating of the top online brokerage firms that trade stocks and mutual funds.


• www.Validea.com offers data on Wall Street analysts and their recent stock picks.


• The Commodity Futures Trading Commission (CFTC) provides consumer alerts and advisories in the "Consumer Protection" section at www.cftc.gov. The Commission oversees the Reparations Program that resolves disputes between commodity customers and commodity professionals. Through this program, you can institute "reparations" proceedings against commodity professionals registered with the Commission who you believe have violated the anti-fraud or other provisions of the Commodity Exchange Act. To ask a question, report information or submit a complaint, contact the CFTC.


• Both the North American Securities Administrators Association and the National Futures Association can offer helpful information.