Here is a terrible story of a man who’s account went from $217,000 to $0 in the matter of years. What’s even worse is that his previous broker (who went on maternity leave) had him predominantly in more conservative investments (Government of Canada bonds and the like), but the replacement broker racked up 74 stock trades in one year (and it looked like mostly high-tech stock positions).
The two-part video also highlights the fact that while the IDA (Investment Dealers Association) can fine brokers, they cannot ‘compel’ payment if the broker just decides to leave the industry. Meanwhile the investor almost never sees a single penny of that fine as restitution – according to the spokesperson from the IDA, he knew of only ONE case that an investor received restitution.
The two-parts are each about 10 minutes long and you can start watching by clicking here.