The NASD maintains a file on serious disciplinary violations committed by stockbrokers. To avoid exploitation, ask for a written agreement spelling out proposed fees and conduct. When dealing with a broker, never allow him or her to make unauthorized trades on your account. Keep meticulous written records documenting dates, times, the substance of conversations, and the actual deals authorized. Review and save all documents you sign when opening a brokerage account.
Investors have legal rights when they open an account.
These include the right to be kept informed regarding all trades that are made and to receive copies of all executed trades with complete documentation confirming these transactions. They have the right not to be given fraudulent information and not to be misrepresented. Brokers are obligated to follow investors' instructions exactly and completely. Complain directly to the broker in writing sent certified mail, return receipt requested. If you get no satisfaction, complain to the manager of the brokerage house in writing sent certified mail, return receipt requested.