$25,000 minimum for daytrading needs to be changed

Be careful with that. If you hold the Series 7 you are considered a professional and as such, things like data and platforms are far more costly compared to those who don't have the 7. The theory is since you have the 7 you are trading for other people so they increase the barriers to entry for those folks. The markets are becoming less and less free at warp speed.

Quote from upandcomer:

+1 for this thread. Sadly, nobody that has any sort of power will give enough of a shit about this to do anything. (hope I'm wrong)

...makes me want to take the series 7 but I don't want to be kicked out of any future interviews for having it! :eek: :D
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Well, since the PDT rule is for margin accounts and not cash accounts, this isn't as restrictive as I thought it was, but then again I prefer options, and they settle the next day (to avoid free-riding)... Plus, I prefer strategies that daytrade about 1 to 3 times a day. That being said, I still oppose the PDT rule. It makes no sense.
 
Quote from the1:

Be careful with that. If you hold the Series 7 you are considered a professional and as such, things like data and platforms are far more costly compared to those who don't have the 7. The theory is since you have the 7 you are trading for other people so they increase the barriers to entry for those folks. The markets are becoming less and less free at warp speed.
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Thanks. Point well taken..
 
Quote from optionsgirl:

Well, since the PDT rule is for margin accounts and not cash accounts, this isn't as restrictive as I thought it was, but then again I prefer options, and they settle the next day (to avoid free-riding)... Plus, I prefer strategies that daytrade about 1 to 3 times a day. That being said, I still oppose the PDT rule. It makes no sense.
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The PDT rule applies to cash and margin accounts.
 
For anyone who doesn't want to trade futures, opening an account outside the US and growing it to 25k seems to be logical alternative for now.

There is no PDT rule in Canada as long as you use a Canadian headquartered broker (IB-Canada still enforces PDT). People up here are flipping US stocks and options 50 times per day in $1000 accounts and the only thing the brokers care are commissions. However, US residents are not allowed to open accounts, courtesy of SEC intervention with local regulators, I assume. That leaves UK (?) and places farther away.
 
SEC on US have authority over Canada? the 25 PDT does nothing to protect US trader but steer them to the prop firm which lead to abuse and fraud.

Canadian brokers can lobby with their regulator to allow US trader to open account and trade... like it was mean to be --equal access to everyone who want to trade.

The SEC here in the US need to stop the monopoly favoring the Big Bank or Big Player in the Market or help prop firm because of your PDT
 
I emailed a lobbyist at one of the discount brokerages . . . He said there is no chance of this being repealed. Day traders are not exactly the most sympathetic constituency, and it's not on anybody's agenda. He didn't say this, but I think the brokerages got the 4x margin rule in exchange for restricing the PDTs. 4x $25k+ is probably more than multiple day trades in a $2500 account.
 
Quote from ForexForex:

I agree - $25,000 minimum is a joke, and the 90 day suspension is insane.

I recently closed an option position that had a slight delay in confirmation. I then made a 2nd attempt to close only to end up opening another position, I then closed that position within a minute. They considered that a day trade and I got dinged for it.
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This ididot rule forces those with smaller capital to trade more risky instruments like fx & futures, which are not subject to the same rules.
 
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