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Learn About the Costs Involved in Pursuing a Fraud Claim Against Your Broker in FINRA Arbitration

If you have a fraud claim against your broker, recovering your losses will most likely involve going to arbitration. The Financial Industry Regulatory Authority (FINRA) provides an arbitration forum for investors to resolve disputes with their brokers, and registered brokers have a legal obligation to participate in the arbitration process.

While going to FINRA arbitration is generally less costly and more efficient than filing a securities fraud lawsuit in court, there are still costs involved. But, these fees pale in comparison to the damages defrauded investors stand to gain in most cases. Here is an overview of some of FINRA’s main fees as well as some of the other potential costs involved in pursuing FINRA arbitration:

FINRA Arbitration Filing Fees

Investors must pay a filing fee at the time of filing. Under FINRA Rule 12900, the current filing fees are:

  • Claim Value of $10,000.01 to $25,000: $425
  • Claim Value of $25,000.01 to $50,000: $600
  • Claim Value of $50,000.01 to $100,000: $975
  • Claim Value of $100,000.01 to $500,000: $1,425
  • Claim Value of $500,000.01 to $1,000,000: $1,740
  • Claim Value of $1,000,000.01 to $5,000,000: $2,025
  • Claim Value of Over $5,000,000: $2,300
  • Non-Monetary/Not Specified: $1,600

FINRA Arbitration Hearing Session Fees

In addition to the filing fee, the other main cost that investors must pay to FINRA is the hearing session fee. This is the cost for each individual hearing session during an investor’s claim—if the claim does not settle before the first hearing date arrives. Similar to the filing fees for FINRA arbitration, the hearing session fees also vary based on the amount in dispute. FINRA also charges more for cases that involve a panel of arbitrators as opposed to a single arbitrator.

For claims starting at $10,000.01 in value or more, the cost per hearing session with a single arbitrator is $450 under FINRA Rule 12902. The cost for a panel of arbitrators is as follows:

  • Claim Value of $10,000.01 to $25,000: No option for an arbitration panel
  • Claim Value of $25,000.01 to $50,000: $600
  • Claim Value of $50,000.01 to $100,000: $750
  • Claim Value of $100,000.01 to $500,000: $1,125
  • Claim Value of $500,000.01 to $1,000,000: $1,325
  • Claim Value of $1,000,000.01 to $5,000,000: $1,435
  • Claim Value of Over $5,000,000: $1,575
  • Non-Monetary/Not Specified: $1,150

Other Costs of Pursuing FINRA Arbitration

Along with FINRA’s filing and hearing session fees, pursuing FINRA arbitration necessarily entails other costs as well. These include expert witness fees and legal fees, among others. In some cases, investors will need to pay these fees out of their awards if their claims are successful. But, FINRA’s Rules have provisions for including these costs in investors’ awards in certain circumstances as well.  

Discuss Your FINRA Arbitration Claim with an Attorney at Zamansky LLC

If you need to know more about the FINRA arbitration process, we invite you to schedule a free, no-obligation initial consultation at Zamansky LLC. To discuss your fraudulent investment losses with an experienced attorney in confidence, please call 212-742-1414 or tell us how we can reach you online today. 

 

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“Jake Zamasky and his colleagues represented me in a FINRA arbitration case against a large multinational bank and succeeded in obtaining an award for the full amount of my investment losses. I would highly recommend the Zamansky firm for their experience in securities litigation, their level of detailed research and case preparation, and their ability to effectively fight for what’s right.”

Richard R.

“Throughout my entire case, Jake Zamansky was incredibly responsive and spent time walking me through each step of the process. He is professional and worked with my challenging schedule, even meeting with me nights and on weekends. He knew exactly which turn to take when it came to my case and yet was respectful of any decisions I wanted to make resulting in a positive outcome.”

Donald A.

“Jake Zamansky and his firm represented me in a FINRA arbitration case to recover investment losses. Jake and his team were very professional and worked very hard preparing for trial and then reaching a substantial settlement of our case. I would highly recommend them.”

William E.

“Jake Zamansky represented me in a FINRA arbitration case which allowed me to recover a substantial portion of investment losses. He is truly an expert in this space and I would highly recommend him to those investors who may have been been a victim of investment fraud.”

Chris K.

“Jake and his team did a great job communicating with me throughout the process of my lawsuit. I would recommend him to anyone looking to sue UBS for unethical practices.”

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