When To Sue Your Brokers for Stock Market Losses
It is no longer a secret that investing in the stock market is one of the most surefire ways to make a lot of money. Being an individual investor though, there is no denying that there also are certain risks involved in trading. One of the most common risks is when you see yourself as a victim of negligence, fraud, or error by your own stock brokers.
In the world of stock market trading, it is a fully-accepted fact that when the improper or deliberate actions of a broker leads to stock market losses for the investor, which in this case is you, it means you are entitled to getting financial compensation. But the obvious problem here is that it’s difficult to prove that your broker’s actions led to the losses. But the good news is you don’t have to be on your own in this fight. What you can do is hire a stock market lawyer, who in turn will be conducting a comprehensive investigation in order to determine if your losses are indeed connected or directly linked to a misconduct by your stock broker.
But then again, you also have to know that you can’t just easily sue your broker. But it also doesn’t mean you won’t hire a good securities lawyer unless you’ve decided to sue. The thing is not all stock brokers are under fiduciary duty. The meaning of this is that you might be working with a broker who isn’t legally required to put your best interests first before their own. So, if you can, don’t ever work with an unregistered broker because you might be put in this very compromising situation.
Anyway, if your broker fails to execute trades on your behalf, that’s a sign that you could be in for a legal battle. Because stock brokers literally can’t make money based on commission if they don’t place opening orders, it means that they likely won’t fail in this job. However, there might be instances in which orders get lost due to negligence or silly mistakes and when it happens, they fail to execute trades. What you have to be taking a closer look at is those brokers who intentionally refuse to place closing orders, knowing that there’s a chance they can make more money by waiting it out. Hence, in case you requested a trade but the broker didn’t execute it, you have the prerogative to go to a stock market lawyer’s office and get some advice on how you can recover your losses.
Another reason to consider suing your stock broker is when he makes an unauthorized trade, a move that’s completely the opposite of the first scenario. In other words, if the broker makes trades using your account without your consent, then it is enough ground to ask for compensation for your losses in the stock market.