Suffering investment losses is a common occurrence considering the unpredictability and constant variations in the investment market. When you suffer losses resulting from the wrongdoing of your investment advisor or stockbroker, you have the right to file a claim and seek compensation for the losses. You can do this by reaching out to an investment loss lawyer to discuss the legal options that you can explore to claim recovery of suffered losses.

After realizing that you have a claim, you need to move with speed because most jurisdictions have statutes that restrict the period in which you can solemnly affirm claims for losses before it becomes stale or is considered expired. Even though there are exceptions and extended eligibility periods for claims, you need to avoid any delay before taking action.

There are many ways in which your investment or financial advisor may have taken advantage of you. They revolve around undertaking their responsibilities with negligence and acts of misconduct. In this regard, you must consult with your investment loss lawyer to learn more about your available options after suffering an investment loss.

You can sue for investment losses when your stockbroker engages in different forms of misconduct and negligence.

Unauthorized Trading

Your stockbroker cannot make trades on your account without your consent. Based on how you relate, this could imply that you have the right to decide about trades, or you may give your broker limited freedom to trade on your behalf.

Irrespective of the relationship between you and your broker, you have the right to be informed on how your funds are being invested. Therefore, your stockbroker needs to give recommendations and make trades that are consistent with your investment strategy.

Failing to Execute Trades

Given that stockbrokers are paid commissions, they have a motivational influence to place opening orders. However, at times, they fail to do their jobs diligently, or mistakes happen, and orders get lost.

In most cases, stockbrokers refuse to place closing orders to earn more commission. If you requested for the execution of trade and your broker fails to carry out the process, you can sue to recover the investment market losses.


Your investor must propose trades that are only consistent with your investment goals and level of risk compliance when making recommendations for you to invest. Trades are considered unsuitable when they expose you to an unreasonable chance of loss and are against your financial needs.

When brokers recommend unsuitable trades, you can hire an investment loss lawyer to sue for stock market losses.

Breach of Fiduciary Duty

Given that not all stockbrokers have the legal responsibility to put your interests before their own, it is important to make the distinction. For brokers who are subject to fiduciary duty, you can sue them for investment losses when they breach fiduciaries.

In this regard, it is important for you to be watchful of unregistered stockbrokers and investment advisors who may not have your best interests in mind.

Other than the different forms of malpractice and negligence, you can sue for investment losses when your stockbroker engages in unregistered trading, over concentrates investments, abuses margin accounts, and takes part in excessive trading.

Wrap Up

Experienced investment attorneys play an important role in determining when to pursue your claims. They also advise you on the extent of cooperation with regulators.

The claim for recovery of investment losses needs to be done as quickly and efficiently as possible against a stockbroker or an investment advisor. In as much as some regulators are more consumer-oriented than others, you need to consult your attorney about the personal financial recovery of investment losses.