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Recovering Investment Losses from Excessive Trading

Trading within your accounts is relatively common, and broker’s will do so in order to make you (the investor) money. However, when accounts are traded in excess, substantial losses can occur. Continue reading to learn more about what constitutes excessive trading and what you can do to recover your losses if you have endured significant investment losses.

When Does Trading Become Excessive?

Although trading in accounts is completely normal, trading in excess can often be a sign that your stockbroker is not acting in your best interests. Every time a trade is executed in your accounts, your broker makes money on the commission it generates.

Excessive trading, also known as churning, can result in significant stock losses, especially when the trades do not align with the objectives of your investment portfolio. If you notice four or more trades in your accounts within a year, your broker may be engaging in excessive trading.

Steps You Can Take If You Suffered Losses Due to Churning

The good news is that even if  you lost money due to excessive trading in your accounts, you may be able to hold your stockbroker accountable in arbitration before Financial Industry Regulatory Authority (FINRA) arbitrators.

Here, your broker will need to justify the excessive trades and if they are unable to do so, the arbitrators may order the stockbroker to compensate you for your stock losses. You can learn more about the FINRA arbitration process when you discuss your case with your investment loss lawyer.

Get in Touch with a Stock Loss Lawyer

If your stockbroker has engaged in excessive trading that resulted in considerable losses in your accounts, you may be able to get your money back with the help of an experienced stock loss lawyer at Wolper Law Firm. Fill out the convenient contact form below or call 800.931.8452 when you are ready to schedule a confidential consultation.

Attorney Matthew Wolper

Matt Wolper is a trial lawyer who focuses exclusively on securities litigation and arbitration. Mr. Wolper has handled hundreds of securities matters nationwide before the Financial Industry Regulatory Authority (FINRA), American Arbitration Association (“AAA”), JAMS, and in state and federal court. Mr. Wolper has handled and tried cases involving complex financial products and strategies ranging from traditional stocks and bonds to options, margin and other securities-based lending products, closed/open-end mutual funds, structured products, hedge funds, and penny stocks. [Attorney Bio]