Good source on this:
https://money.usnews.com/investing/articles/2017-03-27/why-your-financial-service-agreement-includes-arbitrationI doubt you will find a brokerage account that has another option since arbitration is FINRA's preferred method for dispute settlement. FINRA stands for Financial Industry Regulatory Authority. If you have a dispute they are the ones you are going to contact, and they are who the investment firms report to.
My solution: pick a company you trust, but still keep your eyes open.
While I don't agree with arbitration across industries, I understand why the investment industry, including the regulator, prefers arbitration. Can you imagine trying to explain an investment scenario to people who don't understand investments? It's normal to have investments go down in value, but would the average person understand that? Once they understood that part, would they be able to separate an unsuitable trade VS a suitable one? I don't think the average person would be able to make an informed decision after listening to two lawyers each try to distort the situation in their own favor. To properly try an investment case you would need experts/professors teaching the jury everything they need to know, but then you would still have the lawyers cross examining the professors in an attempt to distort everything that was said along the way. The arbiter already understands investments, that's the point. Having them try the case saves a lot of time and money for both sides.
Examples, assume both have an advisor.
1. An aggressive investor with a long time horizon lost 40% in index funds during a down market.
2. An elderly retired investor who prefers conservative investments and lives on a fixed income also lost 40% in leveraged index funds.
People in this sub forum understand what I said, and they recognize that the person in situation 1 has no case and the person in situation 2 has been given bad advice. However, the average person probably doesn't understand half the definitions used and wouldn't even understand the words used to explain those definitions. To understand leveraged index fund you first need to know stock, mutual fund, active VS index funds, and leverage.
An arbiter can see the difference between those cases much clearer than some randomly picked peers who didn't finish high school. If I had a dispute, I would rather go to the arbiter.