• A discretionary account is an account where clients transfer control of their trading account to brokers or advisors who select and execute trades for them.

  • Customers can customize these accounts by specifying restrictions or preferences for the investment style or theme. Recently, robotic advisors have also become popular tools for discretionary accounts.
  • Advantages of discretionary accounts include fast trade execution and expert services. Disadvantages of discretionary accounts include higher fees and the potential for negative performance.