Discretionary Account

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Dictionary Says

Definition of '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

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.

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