By Jozsef Huszar • Updated: October 6, 2026
Knowing how to choose a broker, bank, or financial app starts with three questions: who regulates it, what protects your money, and what does it really cost? When you choose where to hold your money, whether a brokerage, a bank, a robo-adviser, or a financial app, the decision is often made on a handful of marketing claims. The differences that matter most (who regulates the firm, what happens if it fails, what it really costs, and how it is paid for recommending products) are usually in smaller print.
This guide explains the types of platforms, who regulates each, what protections do and do not exist, how to compare costs, and the rules that review and comparison websites must follow. It also explains how a trustworthy review site should operate, which is the standard we hold ourselves to.
Information vs. Advice: Where This Article Stands
There is an important legal difference between:
- General information and comparisons of products (what we publish), and
- Personalized recommendations for a specific person’s money.
Under the Investment Advisers Act of 1940, a person who is paid to give personalized investment advice may need to register as an investment adviser. The U.S. Supreme Court recognized in Lowe v. SEC (1985) that bona fide, impersonal publications of general and regular circulation fall outside the definition. In practice, that means a comparison page should present facts, criteria, and trade-offs for a general audience, and should avoid telling a particular reader what they personally should buy or where they should move their money.
Nothing in our reviews takes your age, income, goals, or risk tolerance into account. A feature that suits one person may be wrong for another.
The Main Types of Platforms and Who Regulates Them
| Platform type | What it does | Main regulators | Failure protection | Key comparison points |
|---|---|---|---|---|
| Brokerage firm | Holds your securities and executes trades | SEC, FINRA, state regulators | SIPC (firm failure, not market loss) | Commissions, fund costs, account types, cash sweep, trading tools, customer service |
| Robo-adviser / investment adviser | Manages a portfolio for a fee | SEC or state securities regulators | SIPC applies to the custodian broker, not to losses | Advisory fee, fund costs, minimums, account types, human access |
| Bank | Deposit accounts, loans | Federal and state bank regulators (OCC, Federal Reserve, FDIC, state agencies) | FDIC (deposits, up to $250,000 per depositor, per bank, per ownership category) | APY, fees, minimums, access, branch/ATM network |
| Credit union | Member-owned deposit and loan provider | NCUA or state regulators | NCUA share insurance (similar limit) | Dividend rates, membership eligibility, fees |
| Fintech or neobank app | App-based banking service, often partnered with a bank | The partner bank’s regulators; CFPB and FTC on consumer practices | FDIC insurance applies only if funds are actually held at an insured bank and records are correct | Which bank holds the money, fees, features, how deposits are insured |
| Crypto exchange / wallet | Trading and custody of digital assets | SEC, CFTC, state regulators (depending on the asset and activity) | Not FDIC-insured; not SIPC-protected for crypto | Custody practices, fees, regulatory status, history of incidents |
| IRA / retirement account custodian | Holds retirement accounts | IRS (rules), SEC/FINRA or bank regulators (the custodian) | Depends on whether it is a bank or brokerage | Account types, fees, investment choices, transfer rules |
FDIC Insurance vs. SIPC: Safety Nets and Their Limits
| Protection | What it covers | What it does not cover |
|---|---|---|
| FDIC insurance | Deposits at insured banks if the bank fails, up to $250,000 per depositor, per bank, per ownership category | Stocks, bonds, mutual funds, annuities, crypto, or losses at non-bank apps |
| NCUA insurance | Deposits at federally insured credit unions, similar limit | Investments |
| SIPC | Customers of a failed brokerage firm, up to $500,000 including a $250,000 limit for cash | Market losses, fraud-based losses in many cases, crypto, and commodities-type assets |
| State guaranty associations | Insurance and annuity contracts if the insurer fails | Not federal; limits vary by state |
Fintech and “pass-through” insurance
Some apps hold customer money at one or more partner banks. FDIC insurance can extend to the customers (“pass-through” coverage), but only if the funds are really deposited at an insured bank and the records are accurate. The FDIC has stated that insurance does not protect you from the failure of a non-bank company in the middle, such as an app or intermediary. It has also adopted rules against misrepresenting deposit insurance status and misusing its name or logo. When a platform says “FDIC-insured,” check which bank holds the money, and how.
Brokerage cash
Uninvested cash in a brokerage account may be handled differently from investments: it may be swept into bank deposit programs (with rates and insurance rules that vary), held in money market funds (not FDIC-insured), or kept as a brokerage credit balance. Ask the platform what happens to idle cash and what rate it earns.
Brokerage Account Fees and Costs: How to Compare
Brokerage and investment costs
| Cost | What to look for |
|---|---|
| Trading commissions | Many US brokers now charge $0 for online stock and ETF trades, but options contracts, broker-assisted trades, and some mutual funds may carry fees |
| Expense ratios | The annual fund cost, deducted from the fund’s returns; often the biggest cost for long-term investors |
| Advisory fees | Robo-advisers and advisers often charge a percentage of assets per year, on top of fund costs |
| Account fees | Transfer-out (ACAT) fees, inactivity fees, paper statement fees, IRA fees |
| Margin interest | The interest rate on borrowed money, which can be high |
| Spreads and order routing | “Commission-free” does not mean cost-free. Some brokers receive payment for order flow (PFOF) from market makers for routing orders; the practice is legal in the US, subject to disclosure and best-execution duties, and brokers publish order-routing reports under SEC Rules 605 and 606 |
| Cash sweep rates | What interest you earn on idle cash |
Bank and savings costs
| Cost | What to look for |
|---|---|
| APY | The standardized yield, which banks must disclose under the Truth in Savings Act (Regulation DD) |
| Rate conditions | Minimum balances, tiers, introductory periods, direct deposit requirements |
| Monthly and overdraft fees | Maintenance fees, overdraft and NSF fees, ATM fees |
| Variable vs. fixed | Savings rates can change at any time; CD rates are fixed for the term but have early withdrawal penalties |
Illustration: why a small percentage matters (hypothetical)
Assume $25,000 invested for 20 years with a 6% gross annual return, no contributions, and different annual costs (fund and advisory fees combined):
| Annual cost | Net return | Value after 20 years | Difference vs. lowest cost |
|---|---|---|---|
| 0.03% | 5.97% | free-stock-screener-and-financial-insights $79,700 | n/a |
| 0.50% | 5.50% | free-stock-screener-and-financial-insights $72,900 | free-stock-screener-and-financial-insights $6,800 less |
| 1.00% | 5.00% | free-stock-screener-and-financial-insights $66,300 | free-stock-screener-and-financial-insights $13,400 less |
The 1% cost level reduces the final value by roughly 17% compared with the lowest-cost case. Actual returns vary and are not guaranteed, but the cost difference is certain.
A similar logic applies to deposits: on $20,000, an APY of 4.5% earns free-stock-screener-and-financial-insights $900 over a year (before tax), while an APY of 0.5% earns free-stock-screener-and-financial-insights $100. Rates are hypothetical and change frequently.
How to Choose a Broker: What to Check Before Opening an Account
- Registration and licensing.
- Brokers and their representatives: FINRA BrokerCheck (brokercheck.finra.org)
- Investment advisers: Investor.gov adviser search (IAPD) and the adviser’s Form ADV
- Banks: FDIC BankFind; credit unions: NCUA Research a Credit Union
- Crypto and money transmitters: your state regulator’s licensing database, and the NMLS Consumer Access site
- Disclosure documents. Brokers and advisers must provide Form CRS (a short relationship summary) to retail customers, explaining services, fees, conflicts of interest, and disciplinary history. Advisers also file Form ADV Part 2 brochures.
- How the firm makes money. Commissions, PFOF, cash sweep spreads, fund revenue sharing, advisory fees, and lending are all sources. A “free” service is paid for in some way.
- Who holds your assets. The custodian is often different from the app you use.
- Disciplinary and complaint history. BrokerCheck, the CFPB complaint database, and state regulators publish information.
- Account types and rules. Does it support IRAs, joint accounts, trusts, or minors’ accounts? What are the transfer-out rules and costs?
- Security. Two-factor authentication, account takeover protections, and how the firm handles fraud claims.
- Service and support. Hours, channels, and escalation paths.
- Terms and conditions. Read the account agreement, especially arbitration clauses, fee schedules, and rate-change rights.
- Promotions. Sign-up bonuses usually have conditions (minimum deposits, holding periods, trading volume). Bonuses are generally taxable income and may be reported on Form 1099.
The Rules for Reviewers and Comparison Sites
Anyone who publishes reviews of financial products, and earns money when readers sign up, operates under several legal frameworks.
FTC Act, Section 5
Prohibits unfair or deceptive acts or practices. A review that omits material information, overstates benefits, or implies independence when it is paid can be deceptive. State consumer protection laws add further requirements.
FTC Endorsement Guides (16 CFR Part 255)
These explain how the FTC applies the law to endorsements, reviews, and testimonials. Key points:
- Disclose material connections. If you earn a commission, receive free products, or have a business relationship with the company you review, readers need to know.
- Make the disclosure clear and conspicuous. It should be placed near the claim or link it relates to, in plain language, in a size and format readers will notice, and visible without clicking or scrolling on the device used. Disclosures tucked into a footer, hidden behind a link, or written in vague terms (“sponsored,” “partner links”) may be insufficient.
- Reflect honest opinions and real experience. An endorser must have actually used the product if the review implies it, and cannot make claims the advertiser could not substantiate.
- Everyone in the chain is responsible. Advertisers, publishers, and affiliates can each face liability for misleading endorsements.
Example wording (illustrative):
| Weak | Stronger |
|---|---|
| “This post may contain affiliate links.” (at the bottom of the page) | “We may earn a commission if you open an account through links on this page. This does not change our ratings, and we explain how we make money in our Affiliate Disclosure.” (placed at the top and near each link) |
| “Sponsored” | “Advertiser disclosure: [Company] pays us when you sign up through this link.” |
The FTC Rule on the Use of Consumer Reviews and Testimonials (16 CFR Part 465)
In effect since late 2024, the rule prohibits fake or false reviews and testimonials, buying or selling reviews, certain insider reviews without disclosure, review suppression through threats or intimidation, and misrepresentations free-stock-screener-and-financial-insights review websites. Civil penalties can apply per violation, adjusted annually. For a comparison site, this means: never fabricate user testimonials, never present paid or incentivized reviews as independent, and be honest free-stock-screener-and-financial-insights where ratings come from.
Substantiation and “best” claims
Claims such as “best,” “safest,” “lowest fees,” or “highest rate” need a reasonable basis at the time they are made, and should be dated and qualified (for example, “highest APY among the accounts we reviewed as of [date]”). Rates and fees can change daily, so every comparison should carry an “as of” date, and be updated or removed when out of date.
Comparative advertising and trademarks
- Truthful comparisons are generally lawful, but false or misleading statements of fact free-stock-screener-and-financial-insights a competitor can create liability under the Lanham Act and state law.
- Defamation or trade libel claims can arise from false statements of fact. Opinions based on disclosed facts are better protected than statements of fact. Keep evidence, link to the primary sources, and correct mistakes promptly.
- Using company names to identify them is generally acceptable (“nominative fair use”), but avoid implying endorsement. Use logos and screenshots only with permission or a clear legal basis, since they are copyrighted or trademarked.
Securities-specific rules
- Section 17(b) of the Securities Act makes it unlawful to publicize a security for payment from the issuer, underwriter, or dealer without disclosing the payment and its amount. It matters for any content that promotes specific securities in exchange for compensation.
- Anti-fraud provisions (Section 10(b) and Rule 10b-5 of the Exchange Act) apply to materially false or misleading statements in connection with securities.
- Registered firms are subject to additional communication rules (for example, FINRA Rule 2210 for broker-dealers and the SEC Marketing Rule for advisers). These bind the firms and, in some cases, the third parties they pay to promote them.
- Reg BI (Regulation Best Interest) governs broker-dealer recommendations to retail customers. It applies to the firm, not to an independent publisher, but it shows the standard regulators apply to conflicts of interest.
Privacy and email
If a site collects personal data (for newsletters, tools, or lead forms), state privacy laws and the site’s privacy policy apply, and commercial email must follow the CAN-SPAM Act. Referral links often use cookies or tracking, which should be described in the privacy policy.
Social media and messaging channels
The FTC’s disclosure expectations apply wherever recommendations appear, including social posts, videos, and messaging channels. A disclosure on the website does not cover a post on another platform. Each recommendation needs its own clear disclosure, placed so people see it before they act.
How a Trustworthy Review Is Built
A reader should be able to see:
| Element | Why it matters |
|---|---|
| Advertiser disclosure at the top of the page and near links | Meets FTC expectations and builds trust |
| Methodology page (“How we review”) | Shows criteria, weights, data sources, and update schedule |
| Editorial independence statement | Explains that compensation does not influence ratings |
| “As of” dates on rates, fees, and features | Information goes stale quickly |
| Primary sources (the provider’s fee schedule, regulatory filings) | Lets readers verify |
| Pros and cons, including for companies that pay us | Avoids one-sided reviews |
| Regulatory status and protections | The most important facts, often missing |
| Corrections policy and contact method | Allows errors to be fixed |
| No guarantee of results and no personal advice | Accurate positioning |
Illustration: a transparent scoring approach (hypothetical)
| Category | Example weight | What is measured |
|---|---|---|
| Costs and fees | 30% | Commissions, expense ratios, account fees, rate vs. market |
| Safety and regulation | 25% | Registration, insurance structure, disciplinary history |
| Features and products | 20% | Account types, investment choices, tools |
| Ease of use and support | 15% | Account opening, interface, service channels |
| Transparency | 10% | Clarity of disclosures and pricing |
Weights reflect a general audience and are not suited to every reader. A reviewer should explain them, and show the underlying data, so readers can reweight according to their own priorities.
What Individuals Should Watch
- Be cautious free-stock-screener-and-financial-insights rankings that do not explain how they were made or who pays for them.
- Look for the disclosure. If you cannot find out how the site earns money, consider that a warning sign.
- Compare primary sources. Fee schedules, account agreements, and regulatory filings are the final authority.
- Check the date. An out-of-date rate or fee is a common source of disappointment.
- Watch for sign-up bonuses with strings attached, and consider whether the account is right for you without the bonus.
- Be skeptical of promised returns, “risk-free” claims, or urgency tactics. The SEC and FTC regularly warn free-stock-screener-and-financial-insights investment fraud and impersonation scams.
- Verify the company yourself before sending money or personal information.
- Understand that “free” has a cost, usually through order routing, cash spreads, or upsells.
- Report problems to the CFPB (banking and consumer finance), the SEC or FINRA (securities), your state regulator, or the FTC (scams and deception).
Making the Most of Comparisons Within the Rules
- Start with your needs, not the product: what you want the account to do, and what you can’t accept (high fees, limited access, no insurance).
- Check registration and protections first, then compare costs and features.
- Read the fee schedule yourself, looking for the costs that apply to how you would use the account.
- Compare like with like: APY to APY, expense ratio to expense ratio, all-in advisory cost to all-in cost.
- Consider the total picture: cash, investing, and retirement accounts may belong at different institutions.
- Keep within insurance limits, spreading cash across institutions or ownership categories if you hold large balances.
- Test with a small transfer before moving everything, where practical.
- Revisit periodically, since rates, fees, and features change.
- Use more than one source, including regulators’ consumer tools.
- Consider independent professional guidance for complex decisions. Verify advisers at Investor.gov or FINRA BrokerCheck, and ask how they are paid.
Where to Verify
- BrokerCheck (FINRA.org) and Investor.gov (SEC): broker and adviser registration, disciplinary history, Form CRS and Form ADV
- FDIC.gov (BankFind, deposit insurance) and NCUA.gov (credit union research and insurance)
- SIPC.org: what brokerage protection covers
- ConsumerFinance.gov (CFPB): consumer complaints and financial product guidance
- FTC.gov: Endorsement Guides, the consumer reviews rule, and reporting deceptive practices
- NMLS Consumer Access (nmlsconsumeraccess.org) and your state financial regulator: licensing of money transmitters, lenders, and some crypto firms
- SEC.gov: order execution and routing reports (Rules 605 and 606), investor alerts