In many cases, the only available means that you have to reach a securities fraud settlement is to participate in arbitration. The alternative dispute resolution process of arbitration is commonly used in securities fraud actions, largely because arbitration as the required means of resolving securities disputes is often a term of investment broker contracts. Arbitration is a neutral, third-party dispute resolution process, by which a panel of one to three impartial persons hears the evidence related to your securities fraud claim, and ultimately reaches a decision on your claim. The arbitrator(s) decide whether your securities fraud claim has merit, and, if so, how much you should recover for your losses. While investors may initially leery of a dispute resolution mechanism that is required by an investment broker's contract, statistics show that arbitration tends to work out well for many investors. Plus, an investor has an even better chance of success through arbitration if he or she hires an attorney for representation in the arbitration proceedings.