Rare is the full-fledged Fool who uses a full-service broker. As do-it-yourselfers, we prefer the discount variety. (For a comparison of services of both discount and full-service brokers -- we call them "full-price" brokers -- check out our Discount Brokerage Center.) But we know that not all investors have the time and patience to manage their finances fully on their own. If you choose to use a full-priced broker, we hope that you find a trustworthy fiduciary custodian -- one who invests the way you want and has a reasonable fee structure.

Every month the National Association of Securities Dealers (NASD) -- the self-regulating organization that oversees the integrity of the investment community -- releases a list of brokers who have been punished by the organization for wrong doing. It usually reads like a combination of Halloween and The Keystone Cops.

From cheating on the Series 7 broker's licensing exam to swindling little old ladies out of their retirement money, the investment industry has its bad apples. In a recent year, 40 firms and 580 individuals were either expelled or suspended from the NASD or barred from the industry altogether. Another 5,500 disagreements wound up in arbitration.

While that's a small percentage of the nearly half million "registered representatives" who work with investors, it's enough to make a Fool cautious.

How do you make sure that you're not one of those investors taken advantage of? Choose your advisor carefully.

Brokers are essentially salesmen. Pure and simple. While there's nothing wrong with being a salesman, always remember that ultimately the reason that a broker is talking to you is to get you to place some sort of order. And some are more conscientious about what they say than others. Check out our 10 Tell-All Questions for a list of things that your broker should never say to you.

How can you find a broker that you can trust?

Start by asking around for references from your friends, relatives, your lawyer, or your accountant. Or if you have a particular interest, say in tax-free bonds from your community, some brokerage firms have a specialty in that area. Call the firm and ask to speak to the branch manager. Tell him a little about yourself and ask him to recommend one of the brokers near you.

After you have a list of between five and ten names, contact the NASD to see if there have been any complaints against anyone on your list. Not only does the NASD list complaints, but they also have access to any criminal convictions and civil judgements against anyone belonging to the organization.

Never deal with any investment professional who is not a member of the NASD or the Securities Investors Protection Corp. (SIPC). Insurance provided by SIPC assures that your account is protected for up to $500,000 in case your brokerage firm goes into bankruptcy. Please note that it does not cover losses from bad advice or market downturns.

You should probably have a shorter list by this time. Call each individual and ask to be sent information on themselves and their firms, including a list of services and the fees and commissions that are charged.

When you've found three or four firms that you like, schedule an interview with them. A visit to the broker's office can be intimidating. Most firms go out of their way to look as opulent, yet staid and trustworthy, as possible. Don't be fooled by the Williamsburg blue trim and the overstuffed leather chairs. What can they do for you is more important that what they've done for their decorators.

During the interview (you're interviewing them, remember) keep in mind the following points:

--Does he ask about your assets, your goals, and your risk tolerance?

--Does she listen well and understand your needs?

--Does he seem to know what he's talking about? And if he isn't sure, has he offered to get more information for you or has he given it the brush off?

--Does she seem trustworthy?

Your interview will probably take place in a meeting room. This is designed to impress you. If possible, find an excuse to go back to your broker's office. This can be very telling. Is he disorganized with files lying all over the place? (A misplaced order could be under there somewhere.) Does he display awards for sales or for advanced education? What books are in his office? Hopefully he's reading to keep up on trends in business and investing, not just sales techniques.

Ask to meet his assistant. Because, whether you like it or not, you are going to be dealing with her (or him) more than you will your broker. If you need a check cut or you want to know the status of a trade, it will be the assistant that will do those things for you. Does he appear knowledgeable and together? Is she patient with your questions or is she so overworked she can't give you the personal touch?

Once you're found "Mr. Right Broker," keep a vigilant eye out for indiscretions. Never give your broker the right to buy or sell for your account without your prior approval. If you ever find that he has done so, report him to his supervisor immediately.

"Churning" is buying or selling an inordinate amount in your account to rack up large commissions for your broker. This is one of the most common complaints against rogue brokers. Be concerned if he wants to sell something that you have just bought recently.

Be your own best advocate. Never buy anything that you don't understand. When your broker recommends something, ask for documentation. He should be able to send a research report or a prospectus about pretty much anything he recommends. If he can't, then HE hasn't done his homework on the investment.

Not all brokers are bad. In fact, most work hard at doing a good job for their clients. But in a multi-billion dollar business there will always be a temptation to cross the line when it's convenient. Be Foolish and don't let anyone cross the line with you.

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