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Stockbroker Fraud Lawyer Jake Zamansky Provides Tips for Investors to Protect Themselves from Fraud

If you invest with a stockbroker, fraud is, unfortunately, a very real concern. Each year, numerous investors fall victim to fraud—suffering losses that they cannot recover through market forces. In this scenario, informed decision-making is key, and hiring a stockbroker fraud lawyer to pursue FINRA arbitration is usually the first step toward recovery.

Of course, it is best to avoid the need for arbitration if at all possible. While some instances of stockbroker fraud are undetectable, there are steps that investors can take to reduce their risk of suffering fraudulent investment losses.

5 Tips for Reducing Your Risk of Loss Due to Stockbroker Fraud

What can you do to protect yourself as an investor? Here are five tips for preventing stockbroker fraud:

1. Choose a Stockbroker Based on Referrals

One of the best ways to reduce your risk of falling victim to stockbroker fraud is by relying on referrals. If a stockbroker comes highly recommended from people you trust, this is generally a good sign. With that said, sometimes people have poor judgment, and a stockbroker who used to be upstanding may have fallen on hard financial times. As a result, while choosing a stockbroker based on referrals can help, you should not rely on referrals exclusively. 

2. Do Your Research

There are several ways that you can research a stockbroker before you choose to move forward. One way is to review the brokerage firm’s website. If the broker works for a large firm, you can review the broker’s bio to get an idea of his or her background and experience. If the broker works for a small firm, does the firm’s website seem legitimate? Is it well-written and up-to-date? You can also look up the broker on FINRA BrokerCheck to see if he or she has any disciplinary history.

3. Only Invest in Securities and Structured Products You Understand

Once you choose a stockbroker, you should be sure to only invest in securities and structured products that you understand. Complex investments present additional risks, and if you don’t understand the product in which you are investing, you will have a much more difficult time determining whether you have cause to be concerned.

4. Monitor the Transactions in Your Portfolio

Any time you invest with a stockbroker, it is important to monitor the transactions in your portfolio. Your broker should only be executing trades in line with your approvals, and your broker’s fees and commissions should be in line with those that were disclosed.

5. Seek Help Promptly if You Have Questions or Concerns

Finally, if you have concerns about fraud for any reason, you should seek help promptly. If your broker has engaged in fraud, hiring a stockbroker fraud lawyer promptly will be essential for preventing additional losses and maximizing your chances of recovery.

Request a Free Consultation with a Stockbroker Fraud Lawyer at Zamansky LLC

Our lawyers represent defrauded investors nationwide. If you need to speak with a stockbroker fraud lawyer, please call 212-742-1414 or contact us online to arrange a free and confidential consultation.

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“Jake Zamasky and his colleagues represented me in a FINRA arbitration case against a large multinational bank and succeeded in obtaining an award for the full amount of my investment losses. I would highly recommend the Zamansky firm for their experience in securities litigation, their level of detailed research and case preparation, and their ability to effectively fight for what’s right.”

Richard R.

“Throughout my entire case, Jake Zamansky was incredibly responsive and spent time walking me through each step of the process. He is professional and worked with my challenging schedule, even meeting with me nights and on weekends. He knew exactly which turn to take when it came to my case and yet was respectful of any decisions I wanted to make resulting in a positive outcome.”

Donald A.

“Jake Zamansky and his firm represented me in a FINRA arbitration case to recover investment losses. Jake and his team were very professional and worked very hard preparing for trial and then reaching a substantial settlement of our case. I would highly recommend them.”

William E.

“Jake Zamansky represented me in a FINRA arbitration case which allowed me to recover a substantial portion of investment losses. He is truly an expert in this space and I would highly recommend him to those investors who may have been been a victim of investment fraud.”

Chris K.

“Jake and his team did a great job communicating with me throughout the process of my lawsuit. I would recommend him to anyone looking to sue UBS for unethical practices.”

Mike A.
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