US Investor Rights

Last updated: July 2026

Regulator: SEC / FINRA 🇺🇸

US investors are protected by a robust regulatory framework including the Securities and Exchange Commission (SEC), FINRA, and the Securities Investor Protection Corporation (SIPC). Understanding your rights can help you recover losses and hold bad actors accountable.

SEC Registration

Investment advisers and broker-dealers must be registered with the SEC or state regulators. Verify any firm or individual before you invest, not after.

SIPC Protection

SIPC protects customers of SIPC-member broker-dealers if the firm fails, up to $500,000 per customer including a $250,000 cash sub-limit — but it doesn’t cover investment losses from fraud at a firm that remains solvent. See our full Compensation Schemes guide for the complete picture, including how it compares to FDIC deposit insurance.

FINRA Arbitration

FINRA provides a dispute resolution forum for investors with complaints against broker-dealers. Arbitration is often faster and less expensive than court litigation.

  • File claims at finra.org/arbitration
  • Covers disputes with FINRA-member firms
  • Simplified, paper-only arbitration for claims of $50,000 or less, with a single arbitrator
  • Claims between $50,001–$100,000 get a hearing with one arbitrator; claims over $100,000 get a three-arbitrator panel
  • Attorneys can represent you throughout

SEC Whistleblower Program

The SEC’s whistleblower program awards 10–30% of sanctions collected in successful enforcement actions to individuals who provide original information about securities violations.

  • Awards apply to sanctions over $1 million
  • Confidential reporting available
  • Anti-retaliation protections apply
  • Submit tips at sec.gov/whistleblower

Reporting Fraud

Report investment fraud to the SEC at sec.gov/tcr, to FINRA at finra.org/investors/have-problem, and to the FBI’s Internet Crime Complaint Center at ic3.gov.

Frequently Asked Questions

How do I check if a broker or adviser is legitimate before investing? Search the firm and individual by name on FINRA BrokerCheck and SEC EDGAR (for broker-dealers) or adviserinfo.sec.gov (for investment advisers). Check registration status directly on these sites rather than trusting claims the firm makes about itself.

Is FINRA arbitration better than going to court? For most disputes with a FINRA-member firm, arbitration is mandatory rather than optional — most brokerage account agreements require it. It’s generally faster and cheaper than litigation, and claims of $50,000 or less use a simplified, often paper-only process.

Do I need a lawyer for FINRA arbitration? Not necessarily for simplified arbitration on smaller claims, but an attorney can represent you at any claim size, and is generally worth it for larger or more complex disputes given what’s at stake.

What if the firm that defrauded me was never SEC or FINRA registered? SIPC and FINRA arbitration only cover registered, member firms. Report unregistered firms to the SEC and IC3 regardless — reports still help build enforcement cases even when individual recovery through these channels isn’t available. See our Fake Broker / Unlicensed Platform guide for how to verify a platform first.

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