Broker Applications

What is the deal with broker applications asking for bank references, your employers, and even how much taxes you've paid? Are they required to do this for regulatory purposes? Isn't this getting a bit crazy?

seems about normal type stuff. similar for here in the uk, so i guess it's very much the same in the us and for regulatory purposes.

you don't mention the broker, so i'd guess you've done due diligence, that it's a well known bona fide broker, and not some shady offshore outfit you'll be giving personal info!

As long as you're dealing with a reputable US broker I would think their financial questions are either to fulfill regulatory requirements or to document that they did at least a minimum amount of due diligence to determine that you were 'qualified' to assume the risk of trading your own account. I have no inside knowledge, but I'm guessing even the most honest broker is threatened with law suits dozens of time each day by customers who have blown up their accounts.