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Brokers must have expressed and detailed permission of the client for all trades, unless the broker and the broker's firm have been granted written authority for discretionary trading, in advance, by the client. A signed written contract is signed by the customer granting permission for the firm to make trades for the customer without first obtaining the customer's approval. Without this contract, a brokerage is required to obtain the customer's permission on each transaction. Customers should be aware that some unscrupulous brokers place orders for promotion of their own "house stocks" with or without the prior authorization of clients. Investors should be aware that if they have granted discretion to their broker that the broker must make suitable investments and not churn the account with excessive trading. Immediately Notification If you have been victimized by unauthorized trades, it is imperative that you contact an attorney as soon as possible. The reason is that courts may view an investor not contacting an attorney or the stock broker's supervisor as tacit approval once they have seen the order confirmation. You cannot wait and "watch the market" to see what the outcome of the unauthorized trade is before making a complaint. If your broker has made unauthorized trades without your approval, you should consider seeking legal help as soon as possible. Contact us. |
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