Why do brokerage firms only communicate verbally (no email or fax replies)?

sometimes they do, but a phone call is a lot quicker and simpler than typing out a letter, printing it out, having it cleared by the compliance department, and faxing it over to their customers.

if they did everything through fax (or even email), it would take forever, and if you had a simple question, they'd have to go back and clear everything through compliance again. by the time you got your answer, the information wouldn't be worth anything to you.

it's not really because they're hiding anything (almost all calls are recorded on their end) - it's so they can get you the information you need in a timely manner, and respond to any questions that you might have.

Plausible deniability.

Same reason doctors give verbal orders to nurses; or Army officers refuse to give written orders - so they can: admit nothing, demand proof, deny everything, blame someone else - when things go wrong.

So there is no evidence of their advice.

simple answer..

DENIAL FACTOR