Unethical stockbrokers sometimes increase their commissions by excessively trading their clients’ accounts. Also known as “overtrading”, “twisting”, and “churn and burn”, churning is against the NASD Fair Practice rules. Since a commission is usually paid each time a stockbroker executes a trade, commissions can erase any earnings your account might have and even turn them into a loss.
If your broker exercises control over the investment decisions in your account and engages in excessive trading in terms of the resources and type of account you have, you might have a case against your broker.
In order to prove that your investment account has been churned, a court will take a look at the turnover of the money in your account. If the entire assets in your account have been traded once a month, then you probably can prove that your stockbroker has churned your account and you should call us at (504) 526-2921 or e-mail us at: firstname.lastname@example.org.