Some investors choose to allow their broker to trade financial products such as stocks, bonds, mutual funds, exchange traded funds (ETF), annuities, and real estate investment trusts (REITS) without their consent. This type of investment account is considered a discretionary account in that the broker uses his or her discretion to decide what types of investments to purchase. In non-discretionary accounts, the opposite is true: brokers are only allowed to purchase the financial products their clients consent to purchasing. Sometimes, however, brokers purchase investments that their client has not authorized. Unauthorized trading can lead to significant losses if the problem is not corrected as soon as it is noticed by the investor.
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.