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At the law firm of Colling Gilbert Wright & Carter in Orlando, Florida, we have long experience in helping people who have been financially hurt by their broker’s unauthorized trading.
To begin building a case against a broker who took part in unauthorized trading that harmed you financially, please call (855) 880-4741 for a free case review.
What Is Unauthorized Trading?
When you hire a broker to handle your investments, you set things up by giving the broker information as to your tax needs and your investment goals. All brokers are required to ask you for this sort of information if you don’t volunteer it, because it forms the basis for their decisions in acting for you.
When you establish this relationship with your broker, you can give him or her written permission to use discretion in trading for you. If you choose not to do this, the broker must get your permission for each separate trade before making it. An experienced stockbroker misconduct attorney can help you file claims if you have experienced unauthorized trading.
Usually, permission is given orally. But there are times when a broker is tempted to make a trade based on his or her own expectation that money will be made from it, and that some of that money will take the form of the broker’s commission. If it does turn out to be a profitable trade, presumably you as the customer won’t object, and the broker will have increased his income.
But if you find that your broker is making such trades without your knowledge or permission, you should immediately complain and ask for it to stop. There’s no guarantee that it will be profitable, and if you should lose money from it, you can hold your broker liable for that. Trading with your money should be done according to your needs, preferences and risk assessment, not your broker’s.
If you find that your broker has been trading without your permission, and if you lose money as a result of that, you have the right to file a lawsuit. To explore your right to compensation, please call Colling Gilbert Wright & Carter at (855) 880-4741 or contact our Orlando law office online for a free consultation.