FINRA 3260 distinguishes trading discretion from limited price-and-time authority
Choosing when to execute a specified order is different from choosing the security and quantity. The rule also places a time boundary on its exception.
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The short version
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What the primary record establishes
FINRA Rule 3260 generally requires prior written customer authorization to named individuals and written firm acceptance before discretionary power is exercised. It also requires prompt written approval of discretionary orders and frequent account reviews. FINRA Rule 3260 — Discretionary Accounts ↗
What the distinction changes
The operational question is what the customer actually decided. If the security or quantity remains for the representative to choose, calling the instruction “timing only” does not establish that the narrow exception fits.
What to check before drawing a conclusion
WFN would retain the instruction, its timestamp, scope, duration and acceptance record. A consent checkbox with no identifiable mandate is weak evidence of what authority was granted.
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Original WFN vector illustrationWFN · 23 October 2026
Editorial noteSource-based explanation with original WFN analysis. Historical records retain their dates; numerical examples are illustrative. The original vector illustration is conceptual and is not documentary evidence.
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What is on the record?
Primary-source explainer
Primary-source explainer
Primary record / reference periodCurrent FINRA Rule 3260 text checked 23 October 2026; U.S. member-firm scope
The linked source supports the documented record; WFN interpretation and illustrative examples are separate.
Choosing when to execute a specified order is different from choosing the security and quantity. The rule also places a time boundary on its exception.
01 · VERIFIED RECORD
What the primary record establishes
FINRA Rule 3260 generally requires prior written customer authorization to named individuals and written firm acceptance before discretionary power is exercised. It also requires prompt written approval of discretionary orders and frequent account reviews. FINRA Rule 3260 — Discretionary Accounts ↗
Its price-and-time exception concerns a customer order for a definite quantity of a specified security. Normally that authority ends with the business day unless the customer signs and dates a contrary written instruction. The rule specifies an institutional not-held GTC exception and requires an order-ticket record. FINRA Rule 3260 — Discretionary Accounts ↗
02 · WFN EDITORIAL ANALYSIS
What the distinction changes
The operational question is what the customer actually decided. If the security or quantity remains for the representative to choose, calling the instruction “timing only” does not establish that the narrow exception fits.
For example, an instruction to execute a stated quantity of a named security leaves a different decision set from a general request to invest a cash balance. This comparison is illustrative, not a determination about a particular account.
03 · REVIEW POINTS
What to check before drawing a conclusion
WFN would retain the instruction, its timestamp, scope, duration and acceptance record. A consent checkbox with no identifiable mandate is weak evidence of what authority was granted.
The article concerns the cited FINRA member rule. It does not describe a universal rule for every forex broker or jurisdiction. A review must consider the account type, applicable exceptions and other obligations before reaching a compliance conclusion.
