Excessive Fees or Churning

Some brokers will excessively trade in an account to produce commissions. This is called churning. If you find that your broker is making a lot of trades and reducing your overall profits or substantially increasing your losses he or she may be churning your account.

If it is costing your account 22% of your yearly net equity in margin fees and commissions, you need a 22.01% return just to start and make a profit.

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