Often times when financial products such as stocks, bonds, mutual funds, exchange traded funds (ETF), annuities, and real estate investment trusts (REITS) are traded, an investor is charged a commission or fee by the broker who initiated the trade on behalf of the investor. These commissions and fees vary greatly depending upon the type of account the investor holds and the frequency of trades made by the investor. In some cases, brokers are paid significant commissions for trading a particular type of financial product held by their clients. Unfortunately, this can lead some financial advisors to trade a particular financial product more than is necessary to achieve the financial goals of the client. This situation is referred to as churning and is a violation of the broker’s professional duty owed to the client.
If you need help settling a dispute with your stock broker, financial advisor or brokerage firm please contact one of our FINRA attorneys at 855.327.7529.