← Growth: Investing (educational)
Lesson 5 of 5 · 6 min read
How to evaluate a broker yourself: criteria, not recommendations
ASF authorisation, the Investor Compensation Fund and cost transparency: the objective criteria you check before trusting anyone with your money.
EduFin does not and will never recommend a particular broker or investment platform, both on principle (neutrality) and for legal reasons (personal investment advice requires ASF authorisation, which an educational platform does not hold and does not aim to hold).
Objective criteria to check
- Authorisation: is the broker authorised by ASF (the Financial Supervisory Authority) in Romania, or by an equivalent authority in another EU state, with the right to operate in Romania (the European passport)? Check directly on the ASF website, not only on the broker's claim.
- The Investor Compensation Fund: is the broker a member of a compensation fund that partly protects you if the firm goes bankrupt (not against losses from market swings, which remain your risk)?
- Cost transparency: are fees, TERs and any hidden costs shown clearly and easy to find, without you having to ask explicitly or dig through small print?
- Track record and reputation you can verify: how long has it operated, and what do independent sources say (not just paid reviews or testimonials on its own site)?
Warning signs
“Guaranteed” returns above the market average, pressure to invest quickly, no verifiable authorisation, communication only through informal channels (WhatsApp, Telegram): these are all serious warning signs. See the Scam shield page for a full list.
In short
- Check ASF authorisation directly on the authority's website, not on the broker's claim.
- The Investor Compensation Fund gives partial protection, only in a bankruptcy, not against market losses.
- High “guaranteed” returns are almost always a warning sign, not an opportunity.
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