discretionary account

n.
A stock or commodity account in which an agent is free to trade without prior consultation with the customer.

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Account managed by a bank acting as an Attorney in Fact or Fiduciary usually through its Trust Department. The bank has the right to buy or sell assets, usually securities, without prior consent.

An account that allows a broker to buy and sell securities without the client's consent.  The client must sign a discretionary disclosure with the broker as documentation of the clients consent.

This is sometimes referred to as a "managed account".

Investopedia Says:
Sometimes broad guidelines are set by the client regarding trading in the account. For example, a client might only permit investments in blue chip stocks.

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For a list of words related to discretionary account, see:

• Securities - discretionary account: account that empowers broker to make transactions on own discretion, without consulting client

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