A recent Ontario court decision highlights an important point for do-it-yourself investors: when you trade on a DIY platform, you’re fully responsible for the outcome—even if you misunderstand how the platform works.
In a recent enforcement case, an investor sued her discount broker after losing money on a biotech stock. The loss occurred because the stock’s value dropped between the time her order was filled and when the funds were debited from her account. The investor claimed she didn’t “acquire” the shares until money left her account, but the court disagreed. The court ruled that it was her responsibility to understand how the platform operated and that her broker was not liable for her losses or for providing advice about the transaction.
DIY investing continues to grow, but it’s not for everyone. Our survey of DIY investors suggests that many DIY investors either feel overwhelmed or lack confidence. If you’re unsure how your platform works, take time to learn—or consider seeking help.