Brokers and securities firms must have authorization from you to make trades on your behalf. Typically, brokerage accounts are “nondiscretionary,” which means each trade must be authorized by the customer before it is made. Investors can enter into written agreements giving their brokers or securities firms “discretionary” authority, which authorizes the broker or firm to make trades in the account as to which discretion has been granted without the investor’s prior approval of each trade . A broker or securities firm cannot exercise discretionary authority over your account without your prior written approval. Unless discretion has been properly granted by the customer, placing a trade without approval in advance from the customer is a violation of law.
The investment and securities fraud attorneys at Moulton & Arney, LLP have extensive experience representing individual investors in securities arbitration and litigation. Cindy Moulton and Lance Arney have successfully represented thousands of clients in securities and investment fraud cases, with combined claims of hundreds of millions of dollars.
If you have suffered an investment loss due to Unauthorized Trading, you may be entitled to recover all or part of your investment. To find out more about your potential claims against your broker/financial advisor, investment firm, or securities firm for Unauthorized Trading, please contact an experienced investment fraud attorney.