Why Arbitration? 

Following the Supreme Courts holding in Shearson/American Express, Inc. v. McMahon, 482 U.S. 220, 226 (1987), pre-dispute contracts to arbitrate securities claims are strictly enforceable. Any such claims against brokerage firms or their agents, including claims for punitive damages available under state law, are subject to arbitration in accordance with the Code of Arbitration Procedure.

Since nearly all broker/client contracts contain arbitration provisions, FINRA Arbitration is often defrauded investors only recourse against broker misconduct.