Describe how online brokerage accounts differ from managed brokerage accounts.

Answer

A managed or discretionary account is just like any other brokerage account, with one important difference. They empower professional investment advisors to manage accounts and execute trades without first consulting the client.

Brokers, also called brokers, are companies that match buyers and sellers of investment vehicles such as stocks and bonds. A brokerage account is often where investors hold their assets. Which type you choose depends on your needs and preferences. A brokerage account is a financial account of an investor who has a licensed broker to buy and sell securities.

Different companies target different investors, depending on their experience, desire for support, and wealth.

Traditional, self-directed online programs are popular with a variety of investors, especially those who prefer to explore and interact with interfaces rather than people.

Human advisors are a better option for those who prefer to interact more directly with financial professionals. Robo-advisors automate investments and use technology to manage portfolios.