A funding portal is registered with the SEC and FINRA to host Reg CF offerings only. It cannot give investment advice, handle investor money or host Reg D deals. A broker-dealer can do more, including Reg D and Reg A+, but is regulated more heavily. Platforms that are neither may help with discovery but may not be paid on transactions.
- Funding portals: Reg CF only, no advice or recommendations, no holding of funds, objective curation allowed.
- Broker-dealers: Reg CF, Reg D, Reg A+, can recommend subject to their conduct rules.
- About 70 funding portals were registered with FINRA as of September 2026.
- Unregistered platforms cannot take transaction-based compensation.
- Check any platform on FINRA BrokerCheck or the FINRA funding portal list.
What can each one do?
| Funding portal | Broker-dealer | Unregistered platform | |
|---|---|---|---|
| Host Reg CF offerings | Yes | Yes | No |
| Host Reg D or Reg A+ | No | Yes | No |
| Recommend investments | No | Yes, under conduct rules | No |
| Hold investor money | No (escrow agent) | Possible, with custody rules | No |
| Success fee on raise | Yes, on Reg CF | Yes | No |
| Select listings | By objective criteria | Broader discretion | — |
Why does this matter to a founder?
- Scope: if you want a Reg D round with a lead and a crowd round together, a portal can host only the crowd part.
- Fees: only registered intermediaries may charge a percentage of your raise. Someone unregistered asking for a success fee on introductions is a red flag. See who can introduce you to investors.
- Curation: a portal may limit listings by objective criteria but cannot pick "best deals" for investors.
Which questions should you ask a platform?
- Are you a registered funding portal or broker-dealer? What is your CRD or SEC number?
- Which exemptions can you host?
- Who holds investor funds?
- What are all the fees: listing, success, equity, escrow, payment processing?
- How do you handle investors after the round: updates, pooling, annual reports?
For costs see what a Reg CF raise really costs; for the regime, Regulation Crowdfunding, ten years in.
Why can't a portal recommend the best deals?
Because recommendations are investment advice, and the funding portal registration was designed as a lighter regime precisely by excluding advice. A portal may limit which offerings it accepts and may highlight offerings based on objective criteria (for example, sector or how much has been raised), as long as it applies those criteria to all issuers and does not imply that a particular investment is advisable. Broker-dealers may recommend, but then take on suitability and conduct obligations.
What does this mean for discovery features?
| Feature | On a funding portal |
|---|---|
| Filter offerings by sector, stage, location | Generally fine (objective criteria) |
| "Staff picks" or "best deals this week" | Problematic (implies advisability) |
| Personalised "you should invest in X" | Problematic (recommendation) |
| Sorting by amount raised or days left | Generally fine if applied equally |
What about platforms that are not registered at all?
Discovery networks, communities and media can connect founders and investors without being intermediaries, provided they do not offer securities, handle investments or take compensation tied to transactions. OBridge, for example, is a discovery network: founders post their build, investors can mark a company Investable as a private, no-amount signal, and any actual raise runs through properly registered channels.
How is Europe different?
In the EU, crowdfunding platforms are authorised under ECSPR rather than as funding portals or broker-dealers, with their own investor protections and a passport across member states. See our ECSPR guide.
Frequently asked questions
What is a funding portal?
An intermediary registered with the SEC and a member of FINRA that may host Regulation Crowdfunding offerings, with restrictions such as no investment advice and no handling of investor funds.
Can a funding portal host a Reg D offering?
No. Reg D and Reg A+ offerings that use an intermediary require a broker-dealer.
Can a platform charge me a percentage of my raise without being registered?
Generally no. Transaction-based compensation is a hallmark of broker activity and requires registration.
How do I check if a platform is registered?
Search FINRA BrokerCheck for broker-dealers and FINRA's list of funding portal members.
Let investors find what you're building.
OBridge is an early-access discovery network for founders and investors. Post your build, share your progress, and let verified investors mark you Investable — a private, no-amount signal of interest, not an offer or a commitment.
Join the waitlist →Sources and further reading. FINRA, Funding portals; FINRA BrokerCheck; 17 CFR §227.402 (portal safe harbor); Crowdfund Insider, funding portals hover around 70.
Educational material, not legal, tax or investment advice. Rules and figures change; confirm with qualified counsel or a tax adviser in your jurisdiction before acting. Last updated October 6, 2026.