Posted by on Jun 20, 2017 in Investment Fraud | 0 comments

In investing, it can be said that you technically don’t have full control of your money. You may lose money because of fluctuating investment values and investing on the wrong opportunities. That is understandable. But what is not understandable is losing money because of your broker’s fault, especially if it involves fraud and misconduct.

In fact, according to the website of Erez Law, those who have suffered from significant losses because of such things may have legal options. But of course, avoiding these brokers is the better choice, because you can save yourself from the hassles of courts and lost financial powers. Below are some of the signs you can look out for to know if your broker is going to put you in trouble.

He is not licensed

In tackling broker fraud and misconduct, the first thing you need to know is how legitimate this broker is. Maybe he doesn’t have the proper licenses to even sell securities and is actually just a scammer that wants to get a hold of your money. Do not be afraid to investigate about his legitimacy.

He has a history of misconduct

In your investigation, legitimacy is not the only important factor. Whether he is legitimate or not, you should check his history, other clients, and other associations to determine his reputation and how competent he is in what he does.

He has failed to study your status

A broker is obligated to look into your financial power, investment experience, and flexibility to risks, before even presenting an investing strategy for you. This is to make sure that your status is suitable to the kind of investment you are making.

He has failed to give you a suitable investing strategy

Even if he has studied your status as a potential investor, he can still put you in a financial loss if he recommends an investing strategy that does not fit your status and goals. This usually comes in the form of recommending investments that have higher risks than what you can financially tolerate.

He is shutting you out from relevant information

A good broker will let you know everything about your investments, but a fraudulent and malicious one will block everything that can expose his fraudulent and malicious nature and intention. Usually, these brokers speak too vaguely or technically to discourage you or make excuses whenever you demand specific documents.

 

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