Excessive Trading Law Firm

Are You An Investor Who Was The Victim Of Churning By Your Broker?

Our Excessive Trading Law Firm Wants To Talk To You

If you suffered losses that you suspect were due too many trades by your financial advisor, contact Shepherd Smith Edwards and Kantas (investorlawyers.com) today. We represent victims of churning, which is an illegal practice and a cause of unnecessary investor losses each year.

What Is Churning?

Churning is what happens when a financial advisor excessively trades in a customer’s accounts and often for the purpose of earning commissions and fees every time. The payments to the broker can erode an account’s value and hurt an investor’s returns. There may even be resulting tax liabilities. Churning may be grounds for an investment loss recovery case in which the Claimant can pursue damages from the liable party.

Some signs of possible churning include:

The frequent buying and selling of shares or assets doesn’t do much in the way of fulfilling the investor’s financial objectives or goals.
Unnecessary and excessive annuities or mutual fund switching with no clear purpose.
The commissions, fees, and any margin interest charged to you is high considering the overall value of your account and any returns you are making.
Your account statements appear to show an unusually high level of activity.
There appears to be in-and-out trading, which involves the rapid selling of a security that is then bought back soon after for no strategic reason.
Your broker is unable to offer clear explanations for why they are making trades in your account.
Your brokerage account seems to be underperforming in relation to market benchmarks.

Unauthorized trading, which is trades made by a financial advisor without getting proper client authorization, can also be a kind of churning when done excessively.

It should be noted that churning can be a risky and deliberate investing strategy, but this should only be done by experienced traders, including high-frequency traders and certain sophisticated investors. Excessive trading is generally unsuitable for individual investors.

There is also another practice known as reverse churning, which is when brokers do the least amount of trading in flat-fee accounts, even while they continue to earn fees for those accounts. This, too, may be grounds for an investor lawsuit if making more trades would have been in your best interests.

How Can Our Excessive Trading Law Firm Help?

Excessive trading can be hard to detect, which is why you want to work with our seasoned churning attorneys. The Shepherd Smith Edwards and Kantas Excessive Trading Law Firm has helped many investors to recoup losses caused by unnecessary and excessive trades in brokerage accounts.

But first, you need to contact us today to request your free case evaluation so we can assess the cause of your losses and whether you should sue your financial advisor. If we do find that you have grounds for a case, we would file your churning lawsuit in FINRA arbitration.

Our churning loss law firm has the skills, experience, and knowledge required to maximize each of our clients’ chances for a full financial recovery. In a churning case, you may be entitled to get back any excess commissions and costs you paid, as well as any actual investment losses as a result of the excessive trading. You also may be able to receive the market gain that you should have accrued if only your account had been properly invested.

Call our Excessive Trading Law Firm today at (800) 259-9010 or fill out this online form.