After setting up a custodial account, the next thing you can do to protect yourself, is retain the control of your portfolio by not giving your advisor “discretion” to trade your investments, or at least limiting that discretion.
You don’t need to buy this.
The first thing you can do to avoid becoming a victim of a fraudulent, unscrupulous or incompetent financial advisor is to simply, not give him your money. If you write your advisor or his firm a check for the funds you want invested, you have given him direct access to your money.
“Advisers who get paid for the products they sell tend to harm their clients’ “
With rare exceptions trading options on securities is also not a smart option. With every option you are betting not just about the direction, but also the timing and magnitude of a security’s price movement.