posted
a trader makes 1-5 trades a day you will need a min. of 25k to trade heavy but with a trade or two a week scottrade is your best bet for less than 2k
Posts: 143 | Registered: Dec 2004
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posted
Thank you. Question about the 25k. Is that a required thing or just an amount which should be used as a minimum?
Posts: 5 | Registered: Mar 2005
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posted
That is correct, if you make 4 trades within a 5 day period, you are flagged as a "pattern Day trader" and are required to have $25k in equity.
I use Etrade and love them but Check out freetrade when you get the chance.
Regarding your question as the minimum, you can trade with $100, as long as you have that $25k in equity in your account you can make the trades you want. Once you fall below that, they start hitting you with fees, ect.
Good Luck.
-------------------- Charts are like artwork, it's the same painting to everyone but each person see's something different. Posts: 3026 | Registered: Apr 2004
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posted
Thanks for all your input! I guess I will have to build up to 25k out of 2k since this is all I have :-/ So untill then I will stick to 3 trades a week. That brings a question to mind. Does a trade equal one buy or sell or does that mean both?
posted
Hey Dave I us Ameritrade and I only started with $2000 I trade about 10 trades per week and on the part where they tell you $10.99 for up to 10,000 shares is wrong I trade 1 mil. for that same $10.99 I called to make sure and I was told yes you can do it . just thought you would like to know.
-------------------- easy come / easy go Posts: 55 | From: south texas | Registered: Mar 2005
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I have to recommend Scottrade all the way. 7 bucks a trade INCLUDING limit and stop orders. they have great streaming quotes and the GUI is great everything is right there. the 25k thing is federal requirement for Margin accounts i believe. correct me if im wrong
Posts: 26 | From: SD | Registered: Mar 2005
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$5 a trade, no problem trading pinks, no account minimum, excellent customer service. And they just updated their interface and it's even better.
Posts: 31 | From: Latrobe, PA | Registered: Feb 2005
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posted
You CAN trade more than 4-5 times a week but you CANNOT buy & sell same day for more than 4 times a week, then you're considered a day trader.
So if you think you'll be buying a stock today and selling tomorrow then you're fine. You can but 5 stocks today and sell some tomorrow, some next day, or sell them all next day - that won't make you a day trader. So no need to worry about the $25K rule.
-------------------- Money was never a big motivation for me, except as a way to keep score. The real excitement is playing the game. Posts: 605 | From: Ontario, Canada | Registered: Feb 2005
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posted
a day trade is in and out of the same stock in one day. you can do that 3 times within 5 days. the 4th time and you will get a warning that you need 25 grand in your account. remember that it is 5 trading days--not one week. thurs, fri, then mon, tues, wed.--5 days.
-------------------- jordan Posts: 5812 | From: st paul,mn | Registered: Feb 2004
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posted
It has to be 5 consecutive days, so Monday-Friday is one example.
Like I said, if he can buy today and sell tomorrow he'll be fine; or if he can manage to buy & sell (same day) less than 4 times in 5 consecutive days.
There is another option..move to Canada, no $25K minimum rule here:)
-------------------- Money was never a big motivation for me, except as a way to keep score. The real excitement is playing the game. Posts: 605 | From: Ontario, Canada | Registered: Feb 2005
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posted
Do day traders pay capitol gains since it is probably their main source of income?
Posts: 804 | From: Burbank, California | Registered: Feb 2005
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Not sure how IRS looks like all this but here in Canada you pay taxes of 50% of your PROFIT. So if I make $50,000 in a year I'll have to pay taxes of $25,000 just like everyone else who's been paying taxes the whole year.
-------------------- Money was never a big motivation for me, except as a way to keep score. The real excitement is playing the game. Posts: 605 | From: Ontario, Canada | Registered: Feb 2005
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posted
28% unless it is held for a year. But what's the fun in that?
I don't recommend Scottrade for a number of reasons, the biggest being that 1/2% charge on penny trades, not to mention customer service problems I've had.
Ameritrade is good; have not tried others (but may soon). If you've been trading for 2 years, go with Lowtrade (by Ameritrade) which is imo the best deal.
-------------------- May your trading build your character as well as your portfolio. Posts: 1763 | Registered: Jan 2005
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posted
I like Scottrade.You can open an account with just 500 dollars with no penalty if you lose money as long as you have atleast one dollar in your account.trades are just 7 dollars for all stocks including limit orders and i think L-2 quotes will be available this summer.
Posts: 1326 | From: Providence,RI,USA | Registered: May 2004
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posted
BT, Maybe you can answer this question. I just opened an etrade account and they told me over the phone two different things. When I first got the account, they told me that I couldn't do 4 day trades in a 5 day period (which I'm cool with) and then they told me in another conversation that I couldn't sell a stock before 3 days of buying it or I could be suspended. I want to be able to get out in one day or 2 instead of waiting all 3 days. I like the first thing they told me, not the 2nd. Is this true? I like them but I kinda feel restricted. Thanks for any reply!
Posts: 1 | From: san antonio | Registered: Mar 2005
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posted
Scottrade has that "feature" as well, where it apparently limits how soon you can sell. Ameritrade lets you sell but puts a equity minimum that must be maintained until the three days are up (margin account). If you have a non-margin account, maybe that's why it has the 3-day restriction.
CORRECTION: Lowtrade is not affiliated with Ameritrade. I was meaning to write Freetrade.
-------------------- May your trading build your character as well as your portfolio. Posts: 1763 | Registered: Jan 2005
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posted
I have a Canadian Ameritrade account and it seems to be very different from US Account.
a) I can sell whenever I want to, minute after I buy if that's what makes me happy.
b) Funds from that sale are available RIGHT AWAY and I have a cash account, not a margin account. I can use that money to buy/sell again as many times as I want. Those funds even show as "Availble for withdrawal" right away too and when I called to see how much money I can transfer to my bank account right away that's how much they told me.
c) There is no that $25K rule, I trade 3-4 times A DAY (3-4 roundtrips a day) and never had any problems.
-------------------- Money was never a big motivation for me, except as a way to keep score. The real excitement is playing the game. Posts: 605 | From: Ontario, Canada | Registered: Feb 2005
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quote:Originally posted by Motheroftwo: BT, Maybe you can answer this question. I just opened an etrade account and they told me over the phone two different things. When I first got the account, they told me that I couldn't do 4 day trades in a 5 day period (which I'm cool with) and then they told me in another conversation that I couldn't sell a stock before 3 days of buying it or I could be suspended. I want to be able to get out in one day or 2 instead of waiting all 3 days. I like the first thing they told me, not the 2nd. Is this true? I like them but I kinda feel restricted. Thanks for any reply!
What you are referring to are settlement dates. They only pertain to cash accounts. A margin account eliminates the settlement periods. All cash accounts have the 3 day settlement period..its an SEC regulation. But most places you can open a margin account for $2000 equity minimum.
-------------------- It is impossible to make anything foolproof because fools are so ingenious. Posts: 3311 | From: St. Louis | Registered: Feb 2005
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Are there any brokers that would allow you to buy sell the next day? I dont think I like the idea of waiting 3 days. This is for a cash account of course....
Posts: 5 | Registered: Mar 2005
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Thorn - Scottrade lets you buy a stock and sell the next minute if you want as long as you have the funds in your accountas many times as you want
Posts: 1326 | From: Providence,RI,USA | Registered: May 2004
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quote:Originally posted by Dave_6: Are there any brokers that would allow you to buy sell the next day? I dont think I like the idea of waiting 3 days. This is for a cash account of course....
You can buy stock ABC Monday......Sell ABC Tuesday morning...Then buy XYZ Tuesday Afternoon (Most brokerages allow the second purchase using unsettled funds....you most likely would get a pop-up warning that you are buying with unsettled funds). But then you must hold XYZ for 3 business days per SEC regulations. If sell XYZ before the 3 days...you will be tagged with FreeRiding...some brokerages may allow it a couple times before restricting your account to trading with settled funds only for 90 days.
-------------------- It is impossible to make anything foolproof because fools are so ingenious. Posts: 3311 | From: St. Louis | Registered: Feb 2005
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quote:Originally posted by ya ya: Thorn - Scottrade lets you buy a stock and sell the next minute if you want as long as you have the funds in your accountas many times as you want
Ok. Thanks for correcting me. That was third-hand info and it may have been a cash account.
-------------------- May your trading build your character as well as your portfolio. Posts: 1763 | Registered: Jan 2005
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posted
Hi. Best thing to do is PM me. Sometimes I miss these posts. I PM'd you but I'll post my response here:
Yes it's true if you have a cash account. In other words once you sell a stock, you have to wait 3 days until the funds clear. Sucks. So open a "margin" account, no extra fees just need at least $2000 in the account.
Etrade has the best customer service out there. Just call them up and explain to them what you want to do or try to avoid. Don't worry they wont lie to you. They're not car salesmen.
With margin, you can buy/sell the stock today and be ready to buy another immediately. Just be careful because when you buy/sell 4 times within a 5 day period, you will be flagged a "pattern day trader". Which you need to have $25k as equity.
quote:Originally posted by Motheroftwo: BT, Maybe you can answer this question. I just opened an etrade account and they told me over the phone two different things. When I first got the account, they told me that I couldn't do 4 day trades in a 5 day period (which I'm cool with) and then they told me in another conversation that I couldn't sell a stock before 3 days of buying it or I could be suspended. I want to be able to get out in one day or 2 instead of waiting all 3 days. I like the first thing they told me, not the 2nd. Is this true? I like them but I kinda feel restricted. Thanks for any reply!
-------------------- Charts are like artwork, it's the same painting to everyone but each person see's something different. Posts: 3026 | Registered: Apr 2004
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posted
I use Etrade as well and have no problem's .............put the cash in and make as many trade's as ya want...........it's the only way to FLY!!
-------------------- "IT'S NOT LUCK IT'S DAYTRADIN'"
"HERE'S MY 2 CENT'S, SEE IF YA CAN TURN IT INTO A BUCK" Posts: 5641 | From: Florida | Registered: Sep 2004
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problem with scottrade is they charge too much for penny stock.
I bought 120000 of INSN and paid a fee of $9.62 for buying and $9.80 for selling.
Almost $20 Fees. If u want to trade penny stock dont go with scottrade. Choicetrade is good one for penny stock. In scottrade one problemo is if u bought stock and sold @ same day and bought another one u cannot sell that stock for 3 days which I think is not good for penny stock. So i think go with choicetrade and if u need any help let me know.
Posts: 160 | Registered: Feb 2005
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pagal.....i pay $9.99 for buy and $9.99 for sell........$20.00 total every time i make a trade .............most here pay that ......ameritrade costs......$10.99 each way
-------------------- "IT'S NOT LUCK IT'S DAYTRADIN'"
"HERE'S MY 2 CENT'S, SEE IF YA CAN TURN IT INTO A BUCK" Posts: 5641 | From: Florida | Registered: Sep 2004
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posted
Settlement fees apply to all brokerages. Its an SEC regulation...not a preference of the brokerage. If its a cash account..you have to have the money to cover to prevent settlement issues. Easiest way to eliminate settlement issues is to use a margin account
-------------------- It is impossible to make anything foolproof because fools are so ingenious. Posts: 3311 | From: St. Louis | Registered: Feb 2005
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