Excessive Trading or Churning

What is excessive trading or churning?

Excessive trading, also known as overtrading or churning, is when a financial advisor or broker with control over your account executes trades simply to increase their commissions. Typically, these transactions don’t meet your investment objectives or risk tolerance.

How do you know if your broker is churning your account?

Churning can be found by looking at the turnover ratio (the percentage of investments that have been sold or replaced annually) of an investment account or the number of times the investment capital has been re-invested during a certain period. In general, a turnover rate of over six times annually is excessive. However, most standard turnover rates are below once a year, so excessive activity can occur at almost any rate above that.

What should you do if you suspect your broker has been churning your account?

If you suspect that your broker has been excessively trading in your investment account to generate commissions, speak with a trusted investment fraud attorney as soon as possible who can review your case. You may be able to recover the paid commissions and any losses associated with the broker’s investment recommendations.



Take the next steps to find out if you have a claim:

Step 1.

Talk to an Experienced Attorney Today

Call and speak to one of our attorneys* for a no-cost consultation to discuss your situation, answer your questions, and help you determine the next steps. This call usually takes about 15 minutes, but we are happy to talk to you as long as you would like!

Step 2.

Quick Review of Your Paperwork

If we think you might have a case, we will need to review a few basic documents. If we determine you have a case, then you will have the option to hire us as your attorneys to pursue it.

Step 3.

Signed Attorney/Client Agreement

If you decide to hire us to pursue your case, we will have you sign an attorney-client agreement so we can begin the process of trying to recover your losses.*

*In the vast majority of cases, our agreement is contingent – meaning you won’t owe us any money unless we recover money for you.

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