The standard of proof required to prove a broker fraud claim can be quite high, depending on the circumstances. An investor must show that the broker intentionally made a misrepresentation or omission of a material fact regarding a securities transaction or investment. In essence, you must prove that your broker gave you incorrect advice that you relied on, which caused losses to your investments. Additionally, in some types of fraud claims, investors must show that they justifiably relied on the broker's advice, either through direct or indirect evidence. If the fraud is based on the theory that the broker omitted a material fact, however, investors need not prove reliance in order to succeed on their fraud claims. Because showing reliance in the case of omission would be virtually impossible, courts have consistently held that so long as the omitted facts reasonably could have affected the investor's investment decisions, then no proof of reliance is required.