A recent Alabama Securities Commission enforcement action found that Raymond James charged excessive and unreasonable commissions on thousands of transactions, potentially harming retail investors.

The Alabama Securities Commission recently issued an order involving Raymond James concerning excessive commissions charged to investors nationwide.

Source: Alabama Securities Commission Consent Order CO-2025-0017, approved August 13, 2025. Raymond James consented to the order without admitting or denying the facts and violations described in it.

These types of practices often fall under broker misconduct and may involve unsuitable investment recommendations depending on the investor’s profile.

According to the order, regulators found that Raymond James charged unreasonable commissions on more than 270,000 transactions, totaling over $8.25 million in excessive charges.

If you were a Raymond James client, you may have paid far more in fees than you realized.

🚨 WHAT THE ORDER FOUND

The ASC investigation uncovered serious issues, including:

Excessive commissions on low-value stock trades
Charges exceeding 5% of the principal investment in many transactions
In some cases, commissions exceeded 90% of the value of the trade
A default $75 minimum commission applied even to very small transactions

The result: investors—especially those making smaller trades—were disproportionately impacted.

HOW INVESTORS WERE AFFECTED.

Many investors are unaware that even small, repeated commissions can significantly erode investment returns over time. In some cases, these charges are inconsistent with the investor’s best interests and may be considered unsuitable investment recommendations.

According to the order:

Over 270,000 transactions nationwide involved excessive commissions
In Alabama alone, more than 7,200 transactions involved unreasonable charges
Alabama investors were charged over $200,000 in excessive commissions

These were not isolated incidents—they were systemic.

THE REAL PROBLEM: SYSTEMIC FAILURES

The order didn’t just identify excessive fees—it identified firm-wide failures:

1. Default Commission System

Raymond James systems automatically applied a minimum $75 commission, even when:

The trade value was extremely small
Lower-cost alternatives were available

2. Lack of Supervision

The firm:

Failed to monitor low-value trades properly
Did not use effective exception reports
Missed transactions where commissions exceeded reasonable levels

3. Prior Regulatory History

This was not the first time.

Regulators noted Raymond James had previously paid over $1.7 million in restitution for similar conduct—but failed to fix the issue.

WHAT THE ORDER REQUIRES

As part of the settlement, Raymond James agreed to:

Pay at least $8.25 million in restitution plus interest to affected investors
Pay millions in fines and penalties across multiple states
Pay $235,064.52 specifically to Alabama investors
Implement compliance changes to prevent excessive commissions

WHAT THIS MEANS FOR INVESTORS

A regulatory order is important—but it does not fully compensate investors.

Even when restitution is paid:

It may not cover all losses
It may not include consequential damages
It does not address broader portfolio harm

YOU MAY HAVE A CLAIM IF

You may have a claim against Raymond James if:

You paid high or unexpected trading commissions
You made frequent small trades that generated fees
Your account showed repeated $75 commissions
You were unaware of how fees were calculated
Your portfolio underperformed due to excessive costs

HOW RECOVERY WORKS

Most claims against firms like Raymond James are handled through FINRA arbitration.

This process allows investors to recover losses caused by:

Excessive commissions
Unsuitable trading activity
Failure to supervise
If you invested with Raymond James and were charged excessive commissions, you may have a claim. Many cases involving broker misconduct and unsuitable investment recommendations are resolved through FINRA arbitration, where investors can seek recovery of their losses.

Free Case Evaluation – No Fee Unless You Recover

If you were a Raymond James client and believe you were charged excessive commissions, we can review your account and determine whether you have a claim.

Call: (205) 644-3744 Submit a consultation request online