Meaning & use
non-discretionary accounts
Last updated
Meaning
nounpluralbusinessfinance
investment accounts in which the owner must approve every trade before the broker can act
Grammar: Always used in the plural when talking about this type of account. The singular is non-discretionary account.
Patterns
- open non-discretionary accounts
- hold non-discretionary accounts
- non-discretionary accounts for clients
Many cautious investors prefer non-discretionary accounts so they can review each trade before it happens.
The firm manages both discretionary and non-discretionary accounts for its wealthy clients.
In a non-discretionary account, the broker must call you for approval before buying or selling anything.
Word forms
| singular | non-discretionary account |
|---|
Common combinations
- open a non-discretionary account
- She decided to open a non-discretionary account to keep control over her investments.
- manage non-discretionary accounts
- The advisor manages non-discretionary accounts for clients who want a say in every trade.
- non-discretionary account holder
- A non-discretionary account holder must approve each transaction.
- discretionary vs non-discretionary accounts
- The main difference between discretionary and non-discretionary accounts is who makes the trading decisions.
Synonyms and how they differ
- advised accounts
- Advised accounts also require client approval, but the term emphasizes the advisor's role in recommending trades.
- client-directed accounts
- Client-directed accounts highlight that the client, not the broker, makes the final decisions.
Opposites
Word family
- discretion noun
- The freedom to make decisions without asking others.
- discretionary adjective
- Able to be decided by a person's own judgment.
Commonly confused: non-discretionary accounts or discretionary accounts?
non-discretionary accounts vs discretionary accounts
Discretionary accounts let the broker trade without asking the client each time; non-discretionary accounts require the client's approval for every trade.
Practice
In a ______ account, the broker must get your permission before making any trade.
Choose one answer.
Non-discretionary accounts require the client's approval for each trade. Discretionary accounts give the broker freedom to trade without asking. Automatic and managed do not carry the specific legal meaning of client approval.
Make it your own
Write a sentence using “non-discretionary accounts”, then check it and compare it with the examples above.