Is it legal for my broker to overtrade on my account to generate more commissions?
The National Association of Securities Dealers prohibits excessive trading in a customer’s account, also known as churning. There are no specific standards to measure what is excessive, it must be judged in relation to the objectives and financial situation of the customer involved. For churning to occur, your broker must exercise control over the investment decisions in your account, either through a formal written discretionary agreement or otherwise.