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. Firm Order

    1. A market order to buy or sell a security for a brokerage's ...
  2. Authorization Code

    A generic term that refers to a code or password that identifies ...
  3. Full-Service Broker

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

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

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

    The level of power entrusted to a broker or agent granting specific ...
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

comments powered by Disqus
Hot Definitions
  1. Repurchase Agreement - Repo

    A form of short-term borrowing for dealers in government securities.
  2. Correlation

    In the world of finance, a statistical measure of how two securities move in relation to each other. Correlations are used ...
  3. Letter Of Credit

    A letter from a bank guaranteeing that a buyer's payment to a seller will be received on time and for the correct amount. ...
  4. Due Diligence - DD

    1. An investigation or audit of a potential investment. Due diligence serves to confirm all material facts in regards to ...
  5. Certificate Of Deposit - CD

    A savings certificate entitling the bearer to receive interest. A CD bears a maturity date, a specified fixed interest rate ...
  6. Days Sales Of Inventory - DSI

    A financial measure of a company's performance that gives investors an idea of how long it takes a company to turn its inventory ...
Trading Center