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Churning

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Churning

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Churning Drill

We're not talking about butter, although we love butter (in moderation, of course).

Churning, in the financial sense, is when a broker makes more trades than necessary just so they can make some extra dough in forms such as increased commissions.

Yes, it's just as shady as it sounds. And yes, it's illegal.

By "over-trading" a client's account, these unscrupulous brokers collect more commission than they should.

What generally happens in these less than chill churning cases is that the broker...

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