Full Trading Authorization

AAA

DEFINITION of 'Full Trading Authorization'

A level of trading authorization that grants an agent or broker the power to place orders, withdraw funds or make inquiries concerning a client's account. Written documentation must be completed by the client before an agent or broker can be given power of attorney over the client's account.

INVESTOPEDIA EXPLAINS 'Full Trading Authorization'

Full trading authorization allows brokers to buy or sell securities on behalf of their clients, look into account activity or overall balances and extract funds for dispersement. This level of authorization is often used by investors who may not have sufficient knowledge to engage in trading.

Investors who do not want to allow a broker to transfer funds from their accounts may consider limited trading authorization. This limits the broker's approved actions to purchasing and selling securities or account inquiries, and restricts them from accessing funds.

RELATED TERMS
  1. Full-Service Broker

    A broker that provides a large variety of services to its clients, ...
  2. Managed Account

    An investment account that is owned by an individual investor ...
  3. Limited Power Of Attorney - LPOA

    An authorization form used in the professional money management ...
  4. Trading Authorization

    The level of power entrusted to a broker or agent granting specific ...
  5. Limited Trading Authorization

    A level of trading authorization that gives an agent or broker the ...
  6. Firm Order

    1. A market order to buy or sell a security for a brokerage's ...
Related Articles
  1. Shopping For A Financial Advisor
    Options & Futures

    Shopping For A Financial Advisor

  2. 4 Dishonest Broker Tactics And How To ...
    Personal Finance

    4 Dishonest Broker Tactics And How To ...

  3. Dispelling 5 Myths About Financial Planners
    Budgeting

    Dispelling 5 Myths About Financial Planners

  4. Choosing A Compatible Broker
    Retirement

    Choosing A Compatible Broker

Hot Definitions
  1. Conduit Issuer

    An organization, usually a government agency, that issues municipal securities to raise capital for revenue-generating projects ...
  2. Financing Entity

    The party in a financing arrangement that provides money, property, or another asset to an intermediate entity or financed ...
  3. Hyperinflation

    Extremely rapid or out of control inflation. There is no precise numerical definition to hyperinflation. Hyperinflation is ...
  4. Gross Rate Of Return

    The total rate of return on an investment before the deduction of any fees or expenses. The gross rate of return is quoted ...
  5. Debit Spread

    Two options with different market prices that an investor trades on the same underlying security. The higher priced option ...
  6. Leading Indicator

    A measurable economic factor that changes before the economy starts to follow a particular pattern or trend. Leading indicators ...
Trading Center