What is a Broker CRD Number?
A CRD stands Central Registration Depository, which is a database that contains information on brokers and brokerage firms. Every stockbroker that is licensed to sell securities in the United States has a CRD number.
Every broker and brokerage firm is required to disclose specific information throughout the entire licensing and registration process. A CRD report may not be totally inclusive, however it can provide valuable information including details on the following:
Why is it Beneficial to Have a Broker’s CRD Number?
It is crucial as an investor to do the appropriate amount of research before placing your savings with an investment professional. Taking the time to do a little bit of additional research can potentially go a very long way toward decreasing the likelihood of investment fraud.
It is important to find out if a broker or brokerage firm is actually registered and if they have a history of complaints, financial difficulties, etc. Looking up their CRD number is one of the best methods to do this.
How to Find A Broker’s CRD Number with FINRA’s BrokerCheck:
- Navigate to FINRA’s BrokerCheck website
- Enter in the broker or brokerage firm name, followed by the location.
- The CRD number will be listed under the broker’s name or brokerage firm.
- You’re done! You can review qualifications, employment history, potential complaints and more.