Discretionary definition

In trading, ‘discretionary’ means that an investor is allowing their broker or fund manager to invest on their behalf without the investor having to authorise individual trades.

Discretionary definition

In trading, ‘discretionary’ means that an investor is allowing their broker or fund manager to invest on their behalf without the investor having to authorise individual trades.

A discretionary broker, for instance, has complete authority to use investor’s capital to trade the markets, without requiring their input. They differ from advisory brokers, who will advise you on which trades to make without actually placing the trades for you, and execution-only brokers, who offer no advice.

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