Discretionary Account
An account that allows a broker to buy and sell securities without the client's consent. The client must sign a discretionary disclosure with the broker as documentation of the clients consent.
This is sometimes referred to as a "managed account". Investopedia Says:
Sometimes broad guidelines are set by the client regarding trading in the account. For example, a client might only permit investments in blue chip stocks. Related Terms:
Autotrading
Blue Chip
Broker
ETF Wrap
Limited Power of Attorney - LPOA
Managed Account |