When it comes to investing, brokers are paid in different ways. It is a common occurrence, though, for investors to be unaware of the broker’s fees and how they are expected to pay. Oftentimes, this can lead to securities fraud cases in which the broker recommends an investment based on commission, even if the investment is not right for the investor.
Watch As Attorney Courtney Werning Explains Broker Fees
It is important for investors to read the fine print or ask questions in order to fully understand how their broker’s fees are structured. Whether the broker is paid by salary by the brokerage firm employing them, hourly by the investor, or by commission, these are things that investors should know in order to choose the right fee structure for their portfolio. When trading, it is important to know what you will be paying to the broker and how it can affect the recommendations being provided to you. It is not uncommon for commission-based brokers to focus on their own profits rather than those of the investor.
By understanding how brokers are paid and recognizing any discrepancies in your account, you can avoid significant losses due to broker actions. You may also notice that the fees are placed in the fine print or you are not informed of these numbers. This can constitute as fraud and you may be able to take legal action to recover any losses that were a result of bad investments.
Our securities attorneys at Meyer Wilson work with clients in order to determine if securities fraud has occurred. During your free consultation, we discuss the specifics of your case, your contract with your broker, and any fees that may have been hidden or wrongfully acquired by the broker. This allows us to work towards recovering monetary losses for you. Call us today to find out more.