How to verify a financial advisor is legitimate
A step-by-step way to confirm a financial advisor is actually registered, licensed, and in good standing — using free, public records.
Verifying a financial advisor takes a few minutes and doesn't require taking their word for anything — the core facts are all public record.
1. Get their CRD number
Every registered advisor and firm has a CRD (Central Registration Depository) number. A legitimate advisor will give you theirs without hesitation. If they can't or won't, that's a red flag on its own.
2. Look them up on the SEC or state record
Search the firm or individual on the SEC's Investment Adviser Public Disclosure (IAPD) site, or search a firm here to see its registration status, fiduciary status, and disclosure history in plain English.
3. Check for disclosures
Disclosures cover everything from minor administrative issues to regulatory actions and customer disputes. A disclosure isn't automatically disqualifying, but you should understand what happened, when, and how it was resolved before deciding it doesn't matter to you.
4. Confirm any credentials separately
Titles like CFP, CFA, or ChFC are earned credentials, not just marketing. You can verify a CFP directly with the CFP Board's verification tool, and a CFA with the CFA Institute.
5. Confirm they're registered where you live
Advisors below certain asset thresholds register at the state level rather than with the SEC, and registration doesn't always cover every state. Confirm the firm is registered to do business in your state.
Frequently asked questions
How do I check if a financial advisor is registered?+
Search their name, firm name, or CRD number on the SEC's Investment Adviser Public Disclosure (IAPD) site, or on a firm profile here. Registered investment advisers must disclose their registration status, fee model, and any disciplinary history publicly.
Is there a free tool to check a financial advisor?+
Yes. The SEC's IAPD site is the official, free source. This site organizes that same public SEC Form ADV data into plain-English profiles so you don't have to read the raw filing yourself.
What is a CRD number?+
A CRD (Central Registration Depository) number is a unique ID assigned to every registered investment adviser firm and representative. It's the fastest way to pull up someone's full regulatory record.
Put this into practice
Every firm profile on AdvisorGrade shows real, sourced fiduciary status, fees, and disclosure history from SEC filings — so you can check everything above in a couple of clicks.