Many investors rely on securities brokers aka stockbrokers for investment advice and recommendations. Brokers are required to recommend only investments that are consistent with your risk tolerance and investment objectives. Brokers also are not permitted to make trades in your account without your approval. And you have the right to accept or reject your broker’s trade recommendations.
Some brokerage firms allow you to give your broker a blanket authorization to buy and sell securities in your account without asking for and obtaining your approval for each individual trade. Even then, however, all such trades must be consistent with your risk tolerance and investment objectives.
Notwithstanding the requirement that brokers obtain approval for trades, some brokers violate clients’ trust by making trades without the clients’ authorization. This is called unauthorized trading. If you notice that trades were made in your account without your authorization it is important that you immediately address the issue with your broker and demand a reversal of the unauthorized trades.
Are you a victim of unauthorized trading?
Unauthorized trading can result from a miscommunication, a clerical error, or outright fraud. Regardless of the reason, if your broker did not have permission to make trades on your behalf and you suffered a loss, you may have a claim against your broker or the brokerage firm that was responsible for supervising the broker.
Contact us today to speak with an experienced stockbroker fraud attorney for a free consultation to discuss your rights and options.
