A broker who improperly recommends buying securities on margin is selfish and/or incompetent. When an investor borrows money from a brokerage firm and uses existing stocks as collateral, a margin account is created. The firm presents the customer with a margin agreement to sign. Using margin to buy stocks or using your current stocks to take out a loan from the brokerage firm is very risky. If the stock securing the loan loses value and your account reaches a low enough level of equity, the brokerage firm will sell your positions at the least advantageous time, or you could be asked to send in additional funds that you might not have. Margin agreements generally say that a broker does not have to give you any set amount of time to send in additional funds, so you could lose all of the money you invested and owe the firm the full amount of your loan, plus interest.

Brokers often recommend using margin so they can make more commissions without requiring you to send in more money. This strategy is high risk and is not suitable for most investors. Eventually there will be an unexpected market correction that causes massive losses. The broker will blame the losses on the market, not his recommendation to use margin that was inappropriate in the first place.


If your financial advisor recommended opening a margin account and you lost money as a result, you may have a strong claim to recover your losses. Heiner Law Offices can analyze your situation and determine if you are a victim of excessive use of margin.

If you are, once you hire us we will aggressively represent your interests and work to hold the firm responsible for your losses. We have represented many people that have lost money because of improper use of margin. We know what to do and how to prosecute these types of cases. We will not rest until we’ve done all we can do to get your money back. It is important that you hire a law firm with the ability to handle these cases that have the kind of knowledge, experience and skill that Heiner Law Offices has.


Contact our office today to discuss your case. We offer a free initial consultation. You can reach us by phone at 801-366-5200 or via email. We try to take every case on a contingency basis which means we don’t collect a legal fee unless we successfully make a financial recovery for you.