I Lost Money Because My Broker Invested in a Fund I Did Not Want. Is He Liable For My Loss?
A broker must abide by terms governing any investment under their control. Sometimes, brokers make honest mistakes that cause their clients to lose money. Other times, brokers might intentionally make bad investments simply because those investments pay a higher commission. In either case, clients can hold brokers and brokerages liable for violations of contractual agreements and making ill-advised investments.