Discretionary account

Discretionary account,

Definition of Discretionary account:

  1. Depending on the specific agreement between investor and broker, the broker may have a varying degree of latitude with a discretionary account. The client may set parameters regarding trading in the account.

  2. Power of attorney arrangement in which a customer gives limited or complete authority to an agent (bank, broker, or investment-portfolio manager) to buy and/or sell securities or commodities on the customers behalf without the customers prior approval or knowledge. Also called controlled account. See also managed account.

  3. A discretionary account is an investment account that allows an authorized broker to buy and sell securities without the client's consent for each trade. The client must sign a discretionary disclosure with the broker as documentation of the client's consent. A discretionary account is sometimes referred to as a managed account; many brokerage houses require client minimums (such as $250,000) to be eligible for this service, and usually pay between 1 percent and 2 percent a year of assets under management (AUM) in fees.

How to use Discretionary account in a sentence?

  1. A discretionary account is one in which clients hand over control of their trading account to brokers or advisors, who select and execute trades for them.
  2. Clients can customize such accounts by specifying restrictions or preferences for investing style or themes. In recent times, robo-advisers have also become popular instruments for discretionary accounts.
  3. Advantages of discretionary accounts include quick execution of trades and expert services. Disadvantages of discretionary accounts include higher fees and the possibility of negative performance.

Meaning of Discretionary account & Discretionary account Definition

Discretionary Account,

How To Define Discretionary Account?

  1. A discretionary account is an investment account that allows an authorized broker to buy and sell securities for any transaction without the client's consent. The client must sign the discretionary statement as documents of the client's agreement with the broker. Discretionary accounts are sometimes called managed accounts. Many brokers require a minimum of a customer (e.g., this 250,000) to be eligible for this service and typically between 1% and 2% of the annual asset under management (AUM). Pay .

    • A discretionary account is one in which the client gives control of his trading account to a broker or advisor who chooses and conducts trades for him.
    • Users can personalize this account by specifying style restrictions or preferences, or investment topics. Recently, RobodeWizard has also become a popular tool for arbitrary accounts.
    • The benefits of discretionary accounts include instant transaction processing and specialized services. Discretionary account losses include higher fees and potential negative profits.

Literal Meanings of Discretionary Account


Meanings of Discretionary:
  1. Available for use at user's discretion.

Sentences of Discretionary
  1. These laws are certainly less flexible than discretionary policies

Synonyms of Discretionary

up to the individual, at one's discretion, open to choice, voluntary, non-mandatory, non-compulsory, elective, optional


Meanings of Account:
  1. Report or description of events or experiences.

  2. A record or report of financial income and expenditure relates to a specific period or purpose.

  3. An agreement under which the organization retains funds from customers or provides goods or services to customers for credit.

  4. An agreement that gives a user personal access to a computer, website or application, usually by entering a username and password.

Sentences of Account
  1. Your visit will not be considered successful

Synonyms of Account

delineation, bank account, note, recital, rate, narrative, concern, see as, adjudge, portrayal, view as, news, think, importance, consequence, momentousness, seriousness, journal, results, moment, communiqué, interest, book, weightiness, substance, weight