Frequently Asked Questions

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Q: What is an arbitration clause?
A: Most securities brokerages will have you sign a standard “new account” form with an arbitration clause that requires you to file a complaint through arbitration proceedings instead of filing an action in court.

Q: What is arbitration?
A: Arbitration is like a trial but there is no judge or jury but instead you get a panel of arbitrators who decide the case. The panel hears the arguments and evidence and then renders a binding decision. The arbitrators generally include at least one professional familiar with securities law and two laypersons. The panel may include accountants, attorneys, sales representatives, bankers, educators, retired judges and other professionals. Arbitration is faster and cheaper than civil court. It takes about one year to get a hearing.

Q: Who conducts the arbitration proceedings?
A: The three main forums for resolving securities arbitration disputes are the The American Arbitration Association, The New York Stock Exchange and The National Association of Securities Dealers, Inc.

Q: Where is the arbitration proceeding held?
A: Arbitrations take place in every state around the country.

Q: How much to file a request for arbitration?
A: The filing, administrative and hearing fees vary from state to state depending upon the amount of your claim. greater your filing and administrative fees will be.

Q: What other costs are involved?
A: Our initial consultation is free. We charge for expenses incurred in preparing for mediation and/or arbitration including expert witnesses who have to be retained to testify at the hearing. your behalf. Our fees are on a contingency basis; if you don’t win, you pay no legal fees. If you win, we are paid a percentage of the award. Content pending...