Discretionary Account
What Does Discretionary Account Mean?
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 explains Discretionary Account
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.
