If you have suffered a financial loss as a result of unauthorized trading by your broker, the legal team at Halling & Cayo, S.C. may be able to help you recover your losses. In most cases, a broker is responsible for obtaining your approval prior to each transaction and does not have the authority to make trades or investments otherwise. If you notice a trade or investment that you did not approve on your statement, you may be eligible for compensation.
There's a common question about whether or not the broker has to call you and approve each transaction in your account. And if you have your kind of normal stock broker relationship, where they recommend investments and then they get a commission if you buy it or sell it, then the answer is yes. They don't have what's called discretion over your account. They have to run each and every trade by you.
We find that often this doesn't happen, and I think the answers as to why might be because the broker just thinks he knows what's best, doesn't want to bother you, any of those number of things. But the reality is this is what's called unauthorized trading, and a broker is not allowed to do it.
Now, if you have an advisory account, where they charge you a percentage fee, you might have given them that authority. But I'm talking about your regular stock broker situation. If you find out that you've got losses in your account and you look back at those trades and you see your statements and you see that he never called you about those trades, he never asked you about those things, you don't know what all these investments are, it's likely that you have a claim, and you might be able to recover some of those losses.