Any brokers that dont enforce the 3 trade rule?

[Mr. DNA]

Is it true that if a brokerage account is funded with 25K+, and declared a pattern daytrading account, the client will remain compliant even if the account drops below 25K.

I think that it becomes a cash aggregate account. You can't trade til tomorrow with money that you have sent on a round trip that day, and you lose your margin. but no violation.


Anyone disagree? Just trying to get this part straight.


dna

 

[slapshot]

Originally posted by Mr. DNA
Is it true that if a brokerage account is funded with 25K+, and declared a pattern daytrading account, the client will remain compliant even if the account drops below 25K.

I think that it becomes a cash aggregate account. You can't trade til tomorrow with money that you have sent on a round trip that day, and you lose your margin. but no violation.


Anyone disagree? Just trying to get this part straight.


dna

This is exactly what happened to me when I dipped below 25K for a few days - could only trade as if 2 to 1 margin and buying power would not renew until next day -

actually, it was a blessing because it forced me to wait for that one awesome setup of the day - I went 8 out of 10 winners - still trading this style now, although more than 1 trade daily (4 avg.)