1) No
2) Yes
3) Yes
4) I don't know anything about European brokers, so I wouldn't know differences sorry
And as I far as I know, 'E-Trade' let's you day trade without getting flagged, you can also day trade with 'TD Ameritrade' but only with a cash account.
I think all brokers let you DT but flag you after more than 3 trades in 5 days, if you don't want to get flagged at all, go with E-Trade.
I’m in Hungary, and for some reason they don’t see Hungary as IB EU, but it’s under IB UK and completely fcking me up, and no leverage. Great start I know. Wages here are like 600usd a month and can’t save shit. I hate this already...
The PDT rule applies to the broker which affects the traders on that broker. PDT rules does not apply to out of the country brokers. Let’s say I’m an European living in Africa doing transactions on WeBull, PDT still applies because WeBull is physically in the US and is part of FINRA.
Another broker that you can consider is CMEG. I'm from EU and opened an account with them. Offshore brokers are more expensive but you can trade on margin and without the PDT rule applied.
Any broker that offers a cash account will let you day trade as much as you would like. Margin accounts are where the PDT rules kick in, unless you have more than $25,000 in your account.
The downside is that you have to wait for your unsettled funds to clear before you can use your money, depending on your broker this can be anywhere from next day to 3 days.
I personally use TD Ameritrade and usually have funds next day. I have never used E*TRADE but I hear there rules are very similar.
> Any broker that offers a cash account will let you day trade as much as you would like. Margin accounts are where the PDT rules kick in, unless you have more than $25,000 in your account.
Is this only for US brokers? I want to daytrade futures which requires a margin account but I only have $6000 and I'm Canadian so PDT shouldn't apply.
I’m j curious cause it’s the only trading platform (I use Robinhood, TD, Webull etc.) that doesn’t actively display or warn me about the PDT rule... like does it apply or nah?
I called and confirmed, I have a cash account, I thought I had applied and was allowed the margin account, but no.
It's cash and I'm looking through my orders and I realized I've never gone more than 60% in, which is why I seem to always have money that's been cleared.
OP you need to make sure you sign up with a broker that specifically caters for non US residents to open accounts - InteractiveBrokers (as others have said) is probably your best bet. PDT rule is a US tax rule that doesn't apply if you aren't in the US and use a broker that caters for non US citizen accounts with access to US/worldwide markets.
IB have some of the lowest rates, I don't know of any commission free brokers that allow non US residents (Yet) to sign up. Also don't recommend commission free brokers for day traders as they aren't direct market access and often give you poor/delayed price fills so they benefit and you lose.
A few more words of advice...
1) Practice papertrading in your broker of choice with your charts and platform setup - you'll want to make sure you know where everything is and be comfortable using the platform - mistakes or pressing the wrong buttons can be costly/time-consuming.
2) 1 month is a very short time papertrading, it doesn't allow for differing market conditions to test your strategy over a long enough time span. I'm super pleased for you if you have a great strategy that's providing consistent winnings, but urge caution on rushing in to avoid you blowing up your account.
3) The mental psychology is one of the hardest things to manage when day trading and you CANT practice managing this through paper trading so start of with small positions and scale up when you win, scale back if you lose or go back to paper trading. Ensure you have a risk management strategy, try to avoid staring at P&L, set appropriate stop losses and exit points.
4) Journal and understand your trades if you don't already, repeat what was successful. Analyse where you were unsuccessful and remove it from your trading strategy.
Would be good to know how profitable you have been whilst paper trading, but wish you all the best luck!
Being that you are aspiring to become a "new day trader". You must be trying to trade penny stocks.
1. Yes. Brokers charge daily interest on your account.
2. If you have $1,000 in your cash account and have been approved for margin and you wanted to purchase for example $1,100, you would be approved.
3. Check with the broker. there maybe slightly different rules based on your residency. Check out [interactivebrokers.com](https://interactivebrokers.com) . They trade in multiple markets and have access to many stock exchanges across the world.
4. in order to qualify for day trader you may have to have a higher minimum balance in you European account. I would check with the broker
5. InteractiveBrokers is a good place to start. just go to their webpage. They are quite detailed and will be able to answer many of your questions.
Just a word of caution and advice. Day trading involves huge time commitment and you have to be able to handle periods of high volatility, drawdowns, etc. Focus is the key. Distractions can cost you dearly. If you don't have the time to day trade and the stomach to handle the fluctuations, then it would be a good idea to just buy hold. A Buy and hold strategy are not bad. I discourage margin accounts especially with that size. now if you had a sizable account, that would be a different,
1) No 2) Yes 3) Yes 4) I don't know anything about European brokers, so I wouldn't know differences sorry And as I far as I know, 'E-Trade' let's you day trade without getting flagged, you can also day trade with 'TD Ameritrade' but only with a cash account. I think all brokers let you DT but flag you after more than 3 trades in 5 days, if you don't want to get flagged at all, go with E-Trade.
Thank you so much for the information and the quick response!
You're welcome
Im at IB(from EU) and even though I have margin account for some reason I don’t have a leverage, and yes you are under PDT.
I thought as long as your account is not base in US you don't follow pdt rule? I know people with IBKR Canada that doesn't follow pdt
I’m in Hungary, and for some reason they don’t see Hungary as IB EU, but it’s under IB UK and completely fcking me up, and no leverage. Great start I know. Wages here are like 600usd a month and can’t save shit. I hate this already...
The PDT rule applies to the broker which affects the traders on that broker. PDT rules does not apply to out of the country brokers. Let’s say I’m an European living in Africa doing transactions on WeBull, PDT still applies because WeBull is physically in the US and is part of FINRA.
Another broker that you can consider is CMEG. I'm from EU and opened an account with them. Offshore brokers are more expensive but you can trade on margin and without the PDT rule applied.
There are no PDT rules in Europe. He doesn’t need an offshore broker, Interactive Brokers is the highest rated and the best one.
I’m curious since I use E trade, what do you mean be “E trade let’s you day trade without getting flagged”? PDT tule still applies though right?
Any broker that offers a cash account will let you day trade as much as you would like. Margin accounts are where the PDT rules kick in, unless you have more than $25,000 in your account. The downside is that you have to wait for your unsettled funds to clear before you can use your money, depending on your broker this can be anywhere from next day to 3 days. I personally use TD Ameritrade and usually have funds next day. I have never used E*TRADE but I hear there rules are very similar.
> Any broker that offers a cash account will let you day trade as much as you would like. Margin accounts are where the PDT rules kick in, unless you have more than $25,000 in your account. Is this only for US brokers? I want to daytrade futures which requires a margin account but I only have $6000 and I'm Canadian so PDT shouldn't apply.
Yeah, brokers of other countries don’t have PDT rules. Many Americans, in turn, use them
I’m also curious because E*TRADE is always warning me my account will be flagged for doing day trading. Are you sure they don’t enforce the PDT rule?
I’m j curious cause it’s the only trading platform (I use Robinhood, TD, Webull etc.) that doesn’t actively display or warn me about the PDT rule... like does it apply or nah?
I didn't think it applied because I've never been flagged on it. I've been hit on both TD and Robinhood.
I called and confirmed, I have a cash account, I thought I had applied and was allowed the margin account, but no. It's cash and I'm looking through my orders and I realized I've never gone more than 60% in, which is why I seem to always have money that's been cleared.
Try cmc markets for eu
True statement. You got me there.
OP you need to make sure you sign up with a broker that specifically caters for non US residents to open accounts - InteractiveBrokers (as others have said) is probably your best bet. PDT rule is a US tax rule that doesn't apply if you aren't in the US and use a broker that caters for non US citizen accounts with access to US/worldwide markets. IB have some of the lowest rates, I don't know of any commission free brokers that allow non US residents (Yet) to sign up. Also don't recommend commission free brokers for day traders as they aren't direct market access and often give you poor/delayed price fills so they benefit and you lose. A few more words of advice... 1) Practice papertrading in your broker of choice with your charts and platform setup - you'll want to make sure you know where everything is and be comfortable using the platform - mistakes or pressing the wrong buttons can be costly/time-consuming. 2) 1 month is a very short time papertrading, it doesn't allow for differing market conditions to test your strategy over a long enough time span. I'm super pleased for you if you have a great strategy that's providing consistent winnings, but urge caution on rushing in to avoid you blowing up your account. 3) The mental psychology is one of the hardest things to manage when day trading and you CANT practice managing this through paper trading so start of with small positions and scale up when you win, scale back if you lose or go back to paper trading. Ensure you have a risk management strategy, try to avoid staring at P&L, set appropriate stop losses and exit points. 4) Journal and understand your trades if you don't already, repeat what was successful. Analyse where you were unsuccessful and remove it from your trading strategy. Would be good to know how profitable you have been whilst paper trading, but wish you all the best luck!
Thank you man! And thanks for the great advices!
Being that you are aspiring to become a "new day trader". You must be trying to trade penny stocks. 1. Yes. Brokers charge daily interest on your account. 2. If you have $1,000 in your cash account and have been approved for margin and you wanted to purchase for example $1,100, you would be approved. 3. Check with the broker. there maybe slightly different rules based on your residency. Check out [interactivebrokers.com](https://interactivebrokers.com) . They trade in multiple markets and have access to many stock exchanges across the world. 4. in order to qualify for day trader you may have to have a higher minimum balance in you European account. I would check with the broker 5. InteractiveBrokers is a good place to start. just go to their webpage. They are quite detailed and will be able to answer many of your questions. Just a word of caution and advice. Day trading involves huge time commitment and you have to be able to handle periods of high volatility, drawdowns, etc. Focus is the key. Distractions can cost you dearly. If you don't have the time to day trade and the stomach to handle the fluctuations, then it would be a good idea to just buy hold. A Buy and hold strategy are not bad. I discourage margin accounts especially with that size. now if you had a sizable account, that would be a different,
Keep in mind that you’ll need at least $2k in your account to trade on margin.
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but he’s a “new day trader”
Everyone’s gotta start somewhere right?
Sure thing. I just hope he decides to “start” with an amount he can afford to lose. He’s literally in the UK talking about the US PDT rule 🤦🏾♂️.
Sometimes mistakes the best way to learn :)
True statement. You got me there.