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First Time Investor

A checklist of questions to ask and checks to make before you invest for the first time, drawn from the US Securities and Exchange Commission and FINRA.

What this tool does

A checklist of questions to ask and checks to make before you invest for the first time, drawn from the US Securities and Exchange Commission and FINRA.

How to use

  1. Work down the list and tick each item as you finish it.
  2. Ticks are saved on this device, in your browser, so they are still there when you come back.

What this checklist covers

The list has 6 groups and 27 items.

  • The five questions the SEC says to ask before you invest (5 items): Is the seller licensed? Look them up with the free search on Investor.gov; Is the investment registered? Check the SEC EDGAR database; How do the risks compare with the possible rewards? The SEC says every investment carries some degree of risk; Do you understand the investment? Read its prospectus or disclosure statement; Know where to turn for help: the SEC, FINRA or your state securities regulator
  • Check the person and the firm (5 items): Look the person up on FINRA BrokerCheck to see if they are properly registered; Ask what kind of professional they are: broker, investment adviser, financial planner or insurance agent; Read the firm's relationship summary (Form CRS) for its services, fees, conflicts of interest and disciplinary history; Look up any letters after their name in the FINRA professional designations database; Ask how they are paid: by commission, by the amount of assets they manage, or another way
  • Fee questions from Investor.gov (5 items): What are the total fees to buy and sell this investment?; What are the ongoing fees to keep my account?; How much does this investment have to rise in value before I break even?; Are there ways to reduce or avoid some of the fees?; How do these fees compare with other products that could meet the same goal?
  • Your goal, your time and your risk (3 items): Write down what the money is for and how many months, years or decades you plan to invest; Think about your risk tolerance, which the SEC describes as your ability and willingness to lose some or all of your original investment; Treat online risk questionnaires with care: the SEC notes their results may lean toward the sponsor's own products
  • Spot pressure and fraud (FINRA and SEC warnings) (6 items): Treat the words "guaranteed" and "risk-free" as a warning sign; Be wary of any pitch that offers high returns with little or no risk; Slow down when you are told time is running out. FINRA says real investments will still be there tomorrow; Do not respond to investment pitches you did not ask for; Talk the decision over with someone you trust before you invest; Practise a way to say no and end the conversation
  • After you invest (3 items): Read every account statement promptly; Object promptly and in writing if a statement shows something you did not authorise; Report suspected fraud to the SEC, FINRA or your state securities regulator

Tip: Nothing here tells you what to buy. It is a list of checks to make before you hand money to anyone.

Limitations

  • This page is general information and not financial, legal or tax advice. It does not recommend any product, amount, provider or strategy.
  • The checks and the tools named come from United States regulators, the SEC and FINRA. Rules, registers, accounts and taxes differ in other countries, and this list does not cover them.
  • A registered seller and a registered investment can still lose your money. These checks lower the chance of fraud. They do not make an investment safe or suitable for you.
  • Ticks, added items and removed items are saved only in this browser on this device.

FAQs

Q: Is this financial advice?
A: No. It is general information. It lists questions to ask and checks to make, and it does not recommend any investment, amount, account, provider or strategy. Consider speaking with a qualified adviser about your own situation.
Q: Where do the questions come from?
A: From pages of the US Securities and Exchange Commission (SEC) on Investor.gov and of FINRA, which regulates registered brokers in the United States alongside the SEC, read on 9 October 2026. The first group is the SEC's "Five Questions to Ask Before You Invest". The fee questions are from the SEC page "Understanding Fees". The pressure tactics are from FINRA's "Avoid Fraud" page.
Q: Does it work outside the United States?
A: The questions are useful anywhere, but the tools named here are American: Investor.gov, EDGAR, BrokerCheck and Form CRS cover firms and people regulated in the United States. In another country, find the equivalent register kept by your own securities regulator.
Q: Does it tell me what to invest in?
A: No. It names no products and gives no returns or split between types of investment. It starts as the same 27 checks for everyone and does not ask about your goals or budget.
Q: Can I add or remove items?
A: Yes. Each section has a box to add your own item, and every item has an X button to remove it. Reset to Default brings back the original list for that section and removes your added items.
Q: Are my ticks saved?
A: Yes, in your browser on this device. They are not sent anywhere and do not follow you to another device or browser.

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