spartan capital securities complaints

So you’re thinking about investing with Spartan Capital Securities and have been doing some research. Smart move. Before handing over your hard-earned cash to any brokerage firm, you’ll want to know what you’re getting into. While Spartan Capital has been around for over 20 years and built a reputation for providing personal service, that doesn’t mean they’re the right choice for you. Unfortunately, Spartan Capital has also racked up a fair number of complaints from disgruntled clients over the years.

We’ve reviewed the details of many of these Spartan Capital securities complaints and are here to give you the full scoop so you can make an informed decision. Keep reading to find out the most common issues former clients report, how Spartan Capital has responded, and what you need to know before becoming their next customer. Forewarned is forearmed, so take a few minutes now to learn the truth about Spartan Capital complaints before you sign on the dotted line. The few minutes you invest today could save you a lot of headaches tomorrow.

Understanding Spartan Capital Securities and Their Services

Spartan Capital Securities is an independent broker-dealer that provides investment services to clients. They offer trading facilities for stocks, bonds, options, futures, forex, and commodities.

Understanding Their Services

Spartan Capital aims to provide their clients with a customizable experience. They have trading platforms for both active traders and long-term investors. For active traders, they offer advanced tools for charting, analyzing the markets, and executing fast trades. If you prefer a more hands-off approach, Spartan Capital also provides managed portfolios with professional oversight.

In addition to trading facilities, Spartan Capital offers retirement planning, wealth management, and margin lending services. Their retirement planners can help you open and fund IRAs, 401(k)s, and other accounts to save for your golden years. Their wealth managers provide comprehensive financial planning to help grow and preserve your assets over the long run.

Spartan Capital also allows clients to borrow money to trade securities through a margin account. While margin trading does amplify risk, it can also amplify returns when used properly. Spartan Capital sets margin requirements and interest rates that aim to balance risk and reward.

Overall, Spartan Capital Securities endeavors to provide clients with the investment services and advice they need to meet their financial goals. Whether you’re an active day trader or a long-term investor, Spartan Capital has resources to help you buy, sell, and manage your assets. Their platforms, planners, and margin lending facilities aim to give clients flexibility and control over their investment portfolios.

Common Complaints Against Spartan Capital Securities

As with any brokerage firm, Spartan Capital Securities has received its fair share of complaints over the years. Here are some of the most common issues customers have reported:

Excessive Fees and Hidden Charges

Many clients complain of being charged undisclosed or excessive fees for account maintenance, trading commissions, and other services. Some report fees being deducted from their accounts without clear explanation or consent. It’s important to fully understand Spartan’s fee schedule before opening an account to avoid surprises.

Poor Customer Service and Responsiveness

Some customers report difficulties contacting Spartan representatives, especially for time-sensitive account matters or trade execution issues. Others say their questions and concerns were not adequately addressed in a prompt, helpful manner. For a company that services retail investors, providing quality customer support should be a high priority.

Unauthorized Trades and Account Access

Perhaps most disturbing are reports of unauthorized stock purchases, sales and transfers being made in customer accounts. Some allege lax security protocols that allowed outside access. No investor should have to worry about their account and funds being compromised due to weak security and oversight on the brokerage’s part.

Restricted Trading and Account Closures

A few clients claim their accounts were abruptly restricted or closed by Spartan without reasonable explanation, limiting their ability to trade or access their funds and investments. Any brokerage firm should have clearly defined policies on account restrictions and closures that are properly disclosed to clients beforehand. Ambiguous, unexplained actions undermine trust in the broker-client relationship.

If considering Spartan Capital Securities, do thorough due diligence on their services, fees, and account security measures to ensure your needs will be responsibly met. And of course, the ultimate choice is up to you.

Examples of Fraudulent Activity and Unethical Behavior

Spartan Capital Securities has been accused of fraudulent and unethical behavior by numerous clients. Here are some examples of the types of complaints that have been filed:

Excessive Trading

Some clients have alleged that Spartan brokers excessively traded their accounts to generate high commissions, a practice known as “churning.” Churning is unethical and violates securities laws. Brokers have a fiduciary duty to make investment recommendations that are in the best interests of the client, not to enrich themselves.

Unsuitable Investments

Spartan has been accused of recommending risky or complex investments that were unsuitable for certain clients based on their financial situations and risk tolerances. For example, recommending speculative penny stocks or options trading to retired clients living on fixed incomes. These types of unsuitable investments are unethical and can be illegal.


Some complaints allege that Spartan brokers misrepresented the risks of certain investments or made false promises about returns. For example, guaranteeing a 20% return with no risk of loss. No investment is risk-free, and guaranteed returns are a red flag. These kinds of misrepresentations and false promises are fraudulent and unethical.

Unauthorized Trading

A few clients have claimed that Spartan brokers made trades in their accounts without permission (unauthorized trading). Brokers do not have discretion to make trades in a client’s account without consent. Unauthorized trading is illegal and unethical.

Lack of Diversification

Spartan has been accused of recommending portfolios that were not properly diversified to reduce risk, instead concentrating in a few speculative stocks. Lack of diversification and overconcentration in risky investments is unethical and can violate a broker’s fiduciary duty. A properly diversified portfolio should consist of a mix of investment types, industries, and risk levels to suit the client’s needs.

These types of fraudulent and unethical behaviors are unacceptable for any brokerage firm and violate securities laws and regulations designed to protect investors. If you have experienced similar issues with Spartan Capital Securities, you may want to consider reporting them to the proper regulatory authorities.

How to File a Complaint Against Spartan Capital Securities

If you have complaints against Spartan Capital Securities, here are the steps to file an official complaint:

File a Complaint with FINRA

FINRA, the Financial Industry Regulatory Authority, regulates brokerages and brokers. You can file a complaint against Spartan Capital Securities with FINRA if you believe they engaged in inappropriate behavior.

To file a complaint with FINRA, go to their website and click “File a Complaint.” You’ll have to provide details about your experience with Spartan Capital Securities, including the names of any brokers involved and specifics about what policies or laws you believe were violated. FINRA will investigate and take action against Spartan Capital Securities if they find evidence of wrongdoing.

Contact Your State Securities Regulator

Each state has an agency that oversees securities brokers and firms in that state. Contact your state securities regulator to report improper behavior by Spartan Capital Securities or any of their brokers. They may conduct their own investigation or work jointly with FINRA. Provide the same details about your experience and any violations of regulations or laws.

Report Fraud to the SEC

If you believe Spartan Capital Securities engaged in outright fraud or other serious illegal activities, report them to the U.S. Securities and Exchange Commission. You can submit a complaint on the SEC’s website or by mailing in or faxing a form. The SEC prosecutes cases of broker fraud and illegal brokerage practices.

Consult with a Securities Lawyer

For complex cases of broker misconduct, you may need to hire an attorney who specializes in securities law. They can review your complaint, determine if laws were actually broken, and potentially represent you should you choose to pursue legal action against Spartan Capital Securities. They may be able to obtain compensation for financial losses due to inappropriate broker behavior.

By following these steps, you have the power to report unethical practices, hold Spartan Capital Securities accountable for their actions, and potentially warn others or recover damages. Don’t hesitate to speak up if you believe you were wronged.

Seeking Legal Action and Compensation Against Spartan Capital Securities

If you’ve suffered significant financial losses due to Spartan Capital Securities’ misconduct, you may be entitled to compensation. Many former clients are seeking legal action against the firm to recover damages.

Consult with a securities lawyer

The first step is to consult with an experienced securities lawyer regarding your legal options. They can review your account statements and the specific details of your situation to determine if you have grounds for a case. Common claims against Spartan Capital include:

  • Breach of fiduciary duty: They failed to act in your best interests.
  • Negligence: They failed to exercise reasonable care and skill in the management of your account.
  • Failure to supervise: They failed to properly oversee brokers and prevent violations.
  • Unauthorized trading: Brokers made trades without your consent to generate commissions.

A lawyer can advise you on the merits of your potential claims and whether arbitration or litigation is the best path forward. They work on contingency, meaning you typically pay nothing upfront and they take a percentage of any settlement or award.

File a complaint

In addition to pursuing legal action, you should file official complaints about Spartan Capital Securities with regulatory bodies like FINRA and the SEC. Although it likely won’t directly recover your losses, it can help establish a record of the firm’s wrongdoing and prevent future harm to other investors. You can file complaints on FINRA and the SEC’s websites for free.

Consider joining a class action

If multiple former clients have similar claims against Spartan Capital, a class action lawsuit may be an option. Class actions allow people with the same or similar grievances to band together to take legal action as a group. This can increase pressure on the firm and maximize potential compensation for everyone involved. A securities lawyer can determine if there are grounds for a class action in your specific situation.

While the legal process can be lengthy and complex, it’s often the only way to truly recover damages from broker misconduct and negligence. With the help of an experienced lawyer, you can hold Spartan Capital Securities accountable for their actions and potentially recoup a portion of the money you lost. Don’t delay—there are statutes of limitations on most securities claims, so time may be of the essence.


So there you have it, the truth about Spartan Capital Securities and the many complaints against them. As with any brokerage firm, do your own research before signing on the dotted line or sending over your hard-earned cash. Check independent reviews, see what others are saying on sites like Investor Complaint Registry or BrokerCheck. Talk to people currently or formerly using their services. Get references if possible. And remember, if something sounds too good to be true, it probably is. Protect yourself and your money. Don’t get sucked into big promises of fast and unrealistic returns. Stay skeptical and be an informed investor. At the end of the day, the only one truly looking out for you is you. So go into any brokerage relationship with your eyes wide open. If you do decide Spartan Capital Securities is right for you, proceed with extreme caution. But you may want to keep looking for an investment firm with a cleaner track record and fewer red flags. Your financial future depends on the choices you make today. Choose wisely!

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