nd.gov - The Official Portal for North Dakota State Government
North Dakota: Legendary. Follow the trail of legends

Karen Tyler

Commissioner
ND Securities Department
600 East Boulevard Avenue
State Capitol, 5th Floor
Bismarck, ND 58505-0510
Phone: (701)-328-2910
Toll Free: (800)-297-5124
Fax: (701)-328-2946
Grafton Office
701 W 6th Street, #312
Grafton, ND 58237
Phone: 701-352-4592

Broker-Dealers and Agents

Handshake between to business people

Broker-Dealer

A broker-dealer is a person engaged in the business of effecting transactions in securities issued by another person or by such person for the account of others or for the person’s own account.  Investment advice given by broker-dealers is usually incidental to the completion of purchase and sale transactions in securities. Compensation is normally in the form of commission but some firms now charge one fee for all services, based on the value of the assets in the account. All broker-dealers, regardless of their location, must be registered to conduct business in North Dakota unless they qualify for an exemption from registration.  There is no de minimis rule exemption for broker-dealers.

Securities Agent

A securities agent is an individual, other than a broker-dealer, who represents a broker-dealer or an issuer or is self-employed in effecting or attempting to effect purchases or sales of securities.  All securities agents, regardless of their location, must be registered to conduct business with North Dakota investors unless they qualify for an exemption from registration. There is no de minimis exemption for securities agents. Also, there is no "unsolicited rule" that allows an agent to accept unsolicited orders from North Dakota customers without being registered in the state.

North Dakota requires the following for an initial registration filing:

  1. An original Form BD must be filed through the Central Registration Depository (CRD) System.
  2. The registration fee for broker-dealers is $200.00 The filing fee will be deducted from the broker-dealer’s CRD Account.
  3. The applicant must be approved by FINRA before registration can be approved in North Dakota.
  4. North Dakota requires that an Affidavit of Broker-Dealer Activity be completed and sent to our office for verification of activity. A copy of the Affidavit may be obtained by clicking on the highlighted link.  Until an application for registration has been approved, no transactions or solicitations may be made by the applicant in North Dakota.
  5.   A Form U-4 must be submitted for each agent through the CRD. The filing fee for Agents is $60.00 and will be deducted from the broker-dealer’s CRD account. Agents are required to have passed the Series 63 Uniform Securities Agent State Law exam or the Series 66 Uniform Combined State Law Examination, and Series 7 General Securities Representative exam or other securities business or product exam as required by the Commissioner.
  6. The renewal date for registration is December 31. All renewal fees will be paid through the CRD System. The renewal fee for firms is $200 and for agents is $60.

NORTH DAKOTA DOES NOT REQUIRE THE SUBMISSION OF ANNUAL AUDITED FINANCIAL STATEMENTS.