Close this search box.

Table of Contents

With Discretion


“With Discretion” is a financial term often used in brokering where it allows brokers to buy or sell securities at their discretion, to best achieve the client’s investment objectives. In essence, the client gives the broker flexibility and authority to operate the account. The broker can make investment decisions without requiring the client’s approval for each transaction.


The phonetics for the keyword ‘With Discretion’ is: /wɪð dɪˈskrɛʃən/

Key Takeaways

I’m sorry, I don’t have any context about “With Discretion.” Could you please provide more details so I can provide a better answer? For example, is “With Discretion” a book, a film, a business concept, or something else?


The business/finance term, “With Discretion” is important as it typically refers to the ability and authority granted to an individual or entity, often a financial advisor or portfolio manager, to make decisions on behalf of another individual or entity. Usually pertaining to investment choices, the term implies a certain level of trust and expertise is placed in the person making such decisions. “With Discretion” allows for quick, timely decisions in a rapidly changing market environment, potentially leading to more efficient investment management and better outcomes. It requires the relevant parties to act wisely, prudently, and in the best interest of the party they represent, hence, they must take into account the risk tolerance, financial goals, and overall investment strategy of the party involved.


In the realm of finance and business, ‘With Discretion’ is a term that carries unique importance, mainly in portfolio management and trading practices. It typically gives specific authority to a brokerage or investment manager to make buy or sell decisions on behalf of the client without seeking approval for each transaction. The purpose here is to allow the investment professional to respond more swiftly to market changes to either benefit from opportunities or protect the portfolio from potential risks.’With Discretion’ is thus used to enhance the efficiency and effectiveness of financial management. In practice, it helps in making real-time investment decisions in volatile markets where time can significantly impact gain or loss. It’s beneficial for clients who may not have the expert understanding or the time to monitor the market continuously, and can trust a professional manager to make informed decisions on their behalf. It is important to remember that all decisions should align with the client’s investment goals and risk tolerance mentioned in the agreement.


1. Portfolio Management: In finance, a portfolio manager typically has ‘discretion’ over investment decisions. This means they are authorized to make investment decisions on behalf of their clients, including buying or selling assets, without needing to consult the client beforehand. This authority can be particularly helpful when market conditions change rapidly and timely decisions are necessary.2. Executive Compensation: Within a company, the Board of Directors could have ‘discretion’ to decide on the CEO’s compensation package. They could decide on various components such as salary, bonuses, stock options, and other benefits, within legal and regulatory guidelines, and company policies. This discretion gives them the flexibility to reward or incentivize the CEO based on company performance or other strategic goals.3. Business Loans: In some cases, loan officers at a bank or financial institution have the ‘discretion’ to approve or reject loan applications without escalation to an approval committee or higher management. This could occur within a predefined limit or bounds set by the bank’s risk parameters. The discretion allows these officers to make faster decisions to aid customer service or to manage the bank’s risk exposure more effectively.

Frequently Asked Questions(FAQ)

What does the term With Discretion mean in finance and business?

With Discretion usually refers to a status granted to a broker or an advisor by their client to make buying or selling decisions without referring back to the client for approval. These decisions are typically made based on the broker’s understanding of the client’s risk tolerance, investment objectives, and other factors.

When would a client choose a With Discretion account?

Clients who do not have the time to manage their accounts, lack understanding of the market, or simply prefer a professional’s help might opt for a With Discretion account.

Is there any risk associated when a client gives With Discretion power to an advisor?

Yes, there is risk involved since the client is entrusting decision-making power to another individual. These risks include the possibility of the broker making poor investment decisions or not aligning with the client’s investment goals.

Is there any legal regulation concerning With Discretion accounts?

Yes, numerous regulations are usually in place to guard clients’ interests. In many jurisdictions, a broker operating on a discretionary basis has a fiduciary duty to the client, meaning they must prioritize the client’s interest above their own.

Can a client limit the power given to an advisor in a With Discretion account?

Yes, clients can typically outline specific parameters, setting a limit to the advisor’s decision-making power, such as specifying the type of securities that can be traded or setting a specific dollar amount for trades.

Can a With Discretion designation be revoked?

Yes, clients can typically remove a With Discretion status, reverting the decision-making power back to themselves, at any time. This usually involves a formal process with the broker or financial institution.

How does a With Discretion account differ from a non-discretionary account?

A With Discretion account allows an advisor to make trades without the client’s express approval each time, while in a non-discretionary account, clients must give approval for each trade or decision made.

Related Finance Terms

Sources for More Information

About Our Editorial Process

At Due, we are dedicated to providing simple money and retirement advice that can make a big impact in your life. Our team closely follows market shifts and deeply understands how to build REAL wealth. All of our articles undergo thorough editing and review by financial experts, ensuring you get reliable and credible money advice.

We partner with leading publications, such as Nasdaq, The Globe and Mail, Entrepreneur, and more, to provide insights on retirement, current markets, and more.

We also host a financial glossary of over 7000 money/investing terms to help you learn more about how to take control of your finances.

View our editorial process

About Our Journalists

Our journalists are not just trusted, certified financial advisers. They are experienced and leading influencers in the financial realm, trusted by millions to provide advice about money. We handpick the best of the best, so you get advice from real experts. Our goal is to educate and inform, NOT to be a ‘stock-picker’ or ‘market-caller.’ 

Why listen to what we have to say?

While Due does not know how to predict the market in the short-term, our team of experts DOES know how you can make smart financial decisions to plan for retirement in the long-term.

View our expert review board

About Due

Due makes it easier to retire on your terms. We give you a realistic view on exactly where you’re at financially so when you retire you know how much money you’ll get each month. Get started today.

Due Fact-Checking Standards and Processes

To ensure we’re putting out the highest content standards, we sought out the help of certified financial experts and accredited individuals to verify our advice. We also rely on them for the most up to date information and data to make sure our in-depth research has the facts right, for today… Not yesterday. Our financial expert review board allows our readers to not only trust the information they are reading but to act on it as well. Most of our authors are CFP (Certified Financial Planners) or CRPC (Chartered Retirement Planning Counselor) certified and all have college degrees. Learn more about annuities, retirement advice and take the correct steps towards financial freedom and knowing exactly where you stand today. Learn everything about our top-notch financial expert reviews below… Learn More