If a broker doesn't execute a trade per the instructions of a client, is the broker liable for broker fraud?

Question: I told my stockbroker to sell one of my stocks but the order was not executed until one day after I told him.  As a result, I lost a substantial amount of money.  My broker claims that my instructions were not clear.  Is this an instance of broker fraud and should I enlist the help of an attorney to get some money back?

Response: A broker has the duty to follow the instructions of the customer with respect to buying or selling a stock. If you instructed your broker to buy or sell a stock and he failed to do so, or he said he would but did not, he may be liable to you for failing to follow your instructions.  

Failure of a broker to follow your instructions, and improperly pressure you to change your instructions, can be grounds for recovering your loss.

The U.S. Securities and Exchange Commission (commonly known as the SEC) is an independent agency of the United States government which holds primary responsibility for enforcing the federal securities laws and regulating the securities industry, the nation's stock and options exchanges, and other electronic securities markets. Through the SEC, you have the option to file a complaint if you think you were the victim of broker fraud.

Moving forward, please consult with a Securities Lawyer to learn the proper action to take in your case.

Answered by Jason Tong

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