FINRA Securities Arbitration Damages Calculator 2026
FINRA arbitration is the standard forum for broker misconduct claims. Damages typically include net out-of-pocket loss + well-managed portfolio comparison (S&P 500 or peer benchmark return foregone). This tool computes both measures.
FINRA Arbitration Basics
FINRA Dispute Resolution is the mandatory forum for most broker-dealer customer claims under FINRA Rule 12200. Three-arbitrator panels (one industry, two public) decide. Filing fees scale with claim size: $1K-$1,800 to file $500K+ claim. Discovery is limited but witness depositions allowed in larger cases.
Damages Measures
FINRA arbitrators use one of three damages methodologies: (1) Out-of-pocket — net loss after withdrawals. (2) Well-managed portfolio — what a properly-managed account would have returned (typically S&P 500 or peer-fund benchmark). (3) Disgorgement — broker forfeits commissions earned through misconduct. Arbitrators typically pick the higher of OOP or well-managed when fraud is proven.
Common Misconduct Claims
Top FINRA claim categories: (1) Unsuitability — investments not matching client objectives/risk tolerance. (2) Misrepresentation — false claims about investment characteristics. (3) Churning — excessive trading to generate commissions. (4) Failure to supervise — firm liable for broker misconduct. (5) Breach of fiduciary duty — for fee-based advisors. Statute of limitations: 6 years from event (FINRA Rule 12206).
Source: FINRA Dispute Resolution Statistics 2025, FINRA Rules 12200/12206/12805. Last updated: May 2026.