Discretionary Account
Categories: Trading, Ethics/Morals, Trusts and Estates
An account where the manager of that account can do whatever she wants with it.
Well, within reason.
The manager can't just withdraw everything and go "find themselves" in the Amazon. What it does mean, though, is that they get to call the shots. An amazing once-in-a-lifetime opportunity crops up, but your broker can't get in touch with you? Too bad, so sad—unless you have a discretionary account. In that case, the broker can buy that amazing opportunity for you without your say-so.