Investment losses hurt. But losses caused by broker misconduct, unsuitable recommendations, or outright fraud demand accountability. The difference between market losses and recoverable losses often lies in whether your financial advisor followed industry rules, disclosed material risks, and acted in your best interest. Many investors attribute their losses to market conditions without realizing their broker violated FINRA regulations or breached fiduciary duties.
Texas hosts major financial centers in Houston and Dallas, with thousands of registered representatives serving investors across the state. When disputes arise between investors and their brokers or brokerage firms, most cases proceed through FINRA arbitration rather than court litigation. The arbitration process moves faster than traditional lawsuits but requires attorneys who understand securities regulations, FINRA procedures, and the nuances of investment products that caused your losses.
What Securities Attorneys Handle
FINRA Arbitration Claims
Most brokerage account agreements contain mandatory arbitration clauses requiring disputes to proceed through FINRA rather than courts. Securities attorneys file and prosecute arbitration claims alleging churning, unauthorized trading, misrepresentation, omission of material facts, unsuitability, breach of fiduciary duty, and failure to supervise. They analyze account statements, calculate damages, and present cases to arbitration panels in Houston, Dallas, and other FINRA hearing locations.
Investment Fraud Recovery
When financial advisors steal funds, recommend Ponzi schemes, or sell unregistered securities, investors need aggressive legal representation to recover losses. Securities attorneys investigate the misconduct, identify responsible parties including supervising broker-dealers, and pursue claims through arbitration, regulatory complaints, and when appropriate, court litigation. They work with forensic accountants to trace funds and quantify damages.
Regulatory Compliance and Defense
Securities attorneys represent both investors and industry professionals. For financial advisors and firms, they handle FINRA investigations, regulatory examinations, U4 and U5 disputes, and licensing matters. They advise on compliance with SEC regulations, state securities laws, and FINRA rules governing suitability, best interest standards, and customer communications.
How to Choose a Securities Attorney
FINRA arbitration experience. Securities disputes follow unique procedures different from court litigation. Choose attorneys who regularly handle FINRA cases and understand arbitrator selection, discovery limitations, and hearing strategies specific to this forum.
Industry background. Many effective securities attorneys previously worked as registered representatives, compliance officers, or in other industry roles. This background provides insight into brokerage operations and standard practices that inform case evaluation.
Contingency availability. Most investor-side securities attorneys work on contingency, meaning they only collect fees if they recover money for you. This arrangement aligns attorney and client interests and provides access to representation without upfront costs.
Case evaluation process. Reputable firms offer free consultations to review account documents and assess potential claims. Be wary of firms that guarantee outcomes or pressure immediate decisions.
Texas Securities Attorneys
Shepherd Smith Edwards & Kantas, LLP
Location: Houston, Texas (national practice)
Website: https://www.investorlawyers.com
Phone: (800) 259-9010
For over 30 years, this Houston-based firm has focused exclusively on representing investors in FINRA arbitration and securities litigation. The attorneys and staff combine more than 100 years of securities industry experience, with many having previously served as FINRA-licensed financial advisors or compliance officers at major brokerage firms. The firm has filed over 2,000 FINRA arbitrations and represents clients nationwide.
Practice Focus: FINRA arbitration, churning and excessive trading, unsuitable investment recommendations, broker theft and conversion, failure to supervise claims, Ponzi scheme recovery, private placement losses
Bakhtiari & Harrison
Location: Dallas, Texas (national practice)
Website: https://bhseclaw.com
Phone: (800) 382-7969
This Dallas-based securities law firm represents investors in FINRA arbitration and litigation involving financial advisor misconduct. The attorneys handle claims against broker-dealers and registered representatives for fraud, misrepresentation, breach of fiduciary duty, and unsuitable recommendations. They represent clients throughout Texas and nationally in disputes involving stocks, bonds, options, mutual funds, REITs, and alternative investments.
Practice Focus: Investment fraud claims, FINRA arbitration, securities litigation, broker misconduct, unsuitable investment recommendations, failure to supervise, unauthorized trading
Greco & Greco, P.C.
Location: McLean, Virginia (represents Texas investors nationally)
Website: https://www.grecogrecolaw.com
Phone: (877) 821-5550
With 85 years of combined experience, this father-son firm represents investors nationwide, including Texas residents, in disputes with financial advisors and broker-dealers. The attorneys handle FINRA arbitration claims with hearings conducted in Houston and Dallas. The firm evaluates cases under both FINRA suitability rules and the newer Regulation Best Interest standard that governs broker recommendations.
Practice Focus: FINRA arbitration, Regulation Best Interest violations, suitability claims, Ponzi scheme recovery, negligence, fraud and misrepresentation, breach of fiduciary duty, professional malpractice
Costs and Fees
Most securities attorneys representing investors work on contingency, typically collecting 25% to 40% of any recovery. This means investors pay nothing upfront and owe no fees unless the attorney recovers money. FINRA arbitration filing fees range from $50 to $2,300 depending on claim amount, with additional hearing session fees. Some firms advance these costs and recover them from any award. Initial consultations are typically free and include review of account documents and case evaluation.
Frequently Asked Questions
How long do I have to file a FINRA arbitration claim?
FINRA’s eligibility rule requires claims to be filed within six years of the events giving rise to the dispute. However, state statutes of limitations may impose shorter periods depending on the type of claim. Consult a securities attorney promptly if you suspect broker misconduct.
What types of conduct can I recover losses for?
Recoverable misconduct includes unauthorized trading, churning (excessive trading for commissions), unsuitable investment recommendations, misrepresentation or omission of material facts, failure to diversify, breach of fiduciary duty, negligence, and failure to supervise by the brokerage firm. Market losses alone, without broker misconduct, generally are not recoverable.
Can I sue my broker in court instead of arbitration?
Most brokerage account agreements contain mandatory arbitration clauses requiring disputes to proceed through FINRA arbitration. Courts generally enforce these clauses. FINRA arbitration offers some advantages including faster resolution, simplified discovery, and arbitrators with securities industry knowledge.
This directory provides general information about securities and investment fraud attorneys in Texas. It does not constitute legal advice or create an attorney-client relationship. Securities claims involve specific deadlines and complex regulations. Consult directly with a qualified securities attorney about your specific situation.
Last Updated: January 2026
Disclaimer: This directory is provided for informational purposes only and does not constitute legal advice, endorsement, or recommendation of any attorney or law firm. Information about attorneys and law firms was compiled from publicly available sources and may not be current or accurate. We make no representations or warranties about the qualifications, experience, or quality of any attorney listed. Fee estimates are approximations only and actual costs may vary significantly. Always verify attorney credentials with the State Bar of Texas, confirm current contact information, and conduct your own due diligence before hiring legal counsel. No attorney-client relationship is created by use of this directory.