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Originally Posted by OMG!WTF!
Sorry if I'm bugging for information. It's just really hard to get this info from these websites. Maybe I'm just dense. What's the difference between trading stocks for people and managing money for people? I know the theory of both but not the regulations and requirements for them.
I've also noticed the difference in regulation over the years. My first broker in the 90's was all over the place, private placements, risky stocks, loans, mortgages, debentures. My last experience a few years ago was much different...pick portfolio 1, 2 or 3 based on your risk tolerance. People I know with advisors who do pick stocks are very cautious to do so and would much rather add to a prescribed portfolio. I don't know if this is typical or if it's just my experience.
Thanks very much for the info.
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No, it's totally fine with me, although hopefully people don't mind the thread derail that this is becoming!
So the difference is that if you manage money on a discretionary basis then you have authority to make trades for people on their behalf. So for example, you decide that today is the day that your clients should move from ABC holding to DEF. You just make your trade and it's done (with proper documentation and things like that).
If you aren't licensed for that though, you can make recommendations, but the final say isn't yours as an advisor/manager. You are seeking your clients permission to make trades and have to get their permission and authorisation to do trades and transactions.