NewEdge Securities

Kurta Law is investigating recommendations by NewEdge Securities brokers.

NewEdge Securities (CRD#: 10674) is the broker-dealer for NewEdge Capital Group. NewEdge Capital Group also offers advisory services through NewEdge Advisors.

The firm has also done business under the following names:

• Mid Atlantic Capital Corporation
• Mid Atlantic Securities Corporation
• Mid Atlantic Capital Securities

About New Edge Securities

The firm discloses in its Form CRS that in addition to securities, it “provides access to research, financial tools, and planning services.”

NewEdge Securities may recommend variable annuities and private placements in addition to stocks and bonds. Investors should know that these investments can be high-risk. The firm also utilizes margin in certain accounts, a high-risk investing strategy that involves borrowing money from the firm to buy more securities.

NewEdge Securities’ headquarters are in Pittsburgh, Pennsylvania.

Fees and Conflicts of Interest

NewEdge Securities brokers make money in a way that may create a conflict of interest. The firm is required to disclose these conflicts of interest in the firm’s Customer Relationship Summary (Form CRS).

Brokers can apply discounts to the standard fees. Ask your broker about applicable discounts.

• Certain investments, like mutual funds, feature fees called “sales loads.” These may provide ongoing payments to the firm.
• Private placements feature placement agent fees.
• Your broker is also paid per-transaction commissions, which means they have an incentive to encourage you to trade more often and in larger amounts.

Brokers with Disciplinary Actions

NewEdge Securities discloses in its Form CRS that it works with representatives who have allegations of misconduct on their records. The Form CRS recommends that investors ask their advisor or broker, “Do you have any disciplinary history? For what type of conduct?”

Regulatory Actions

There are 11 regulatory actions on the firm’s BrokerCheck record. The following are the two most recent alleged violations that prompted regulatory fines.

Fine and Restitution Following Bond Transaction Allegations

On March 7, 2024, NewEdge Securities entered into an Acceptance, Waiver, and Consent agreement (AWC) with FINRA to settle the allegations that it charged unfair prices for corporate and municipal bond transactions. According to the AWC, the firm’s failure to provide accurate prices caused customers to lose $44,927.83.

The firm was ordered to repay customers $44,927.83 and FINRA fined the firm $90,000.

$100,000 FINRA Fine

On April 6, 2017, MidAtlantic Capital Corporation (a previous name of NewEdge Securities), entered into an AWC in which it consented to the findings that it failed to supervise two of its representatives who participated in private hedge fund transactions. FINRA Rule 3280 requires firms to oversee the private transactions of its representatives to ensure compliance with securities regulations.

As part of the terms of the AWC, the firm consented to a $100,000 fine.

Kurta Law Can Help

Investors who lost money working with a NewEdge Securities broker or advisor should reach out to an investment fraud lawyer for help. Our attorneys offer free case evaluations and do not charge a fee unless we win your case. Call (877) 600-0098 or email info@kurtalawfirm.com.