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January 29, 2025
Broker Misconduct: What It Is and How to Fight Back
When you hire a broker, you expect them to act in your best interest. Unfortunately, some brokers engage in unethical practices that put investors at risk. Understanding broker misconduct is essential for protecting your investments.
Common Forms of Broker Misconduct
- Unauthorized trading happens when a broker makes transactions without client consent.
- Excessive trading (churning) generates commissions for the broker but hurts the investor.
- Failure to disclose risks can lead investors into unsuitable investments.
- Margin abuse occurs when brokers encourage high-risk margin trading without fully explaining the risks.
- Breach of fiduciary duty happens when brokers prioritize their own interests over clients’.
- If you suspect broker misconduct, acting quickly can help prevent further losses.
How to File a Claim for Broker Misconduct
Victims of broker misconduct can file complaints with FINRA or pursue legal claims with an experienced broker misconduct attorney to recover damages.
Take Action Today
If you’ve suffered losses due to broker negligence or fraud, we can help. Schedule a consultation today to explore your legal options.