Broker for a small account

M

Miguel Rodriguez

Hi guys,

I am based in Hong Kong and looking to open a small account to trade the US market. I have used DAS platform in the past. What are your recommendations ?

As it will be a small account, a broker that offers some kind of leverage without impossible commissions would be great.

Looking at funding around 3000USD.

Thanks!
 
Leverage and 3000USD ?

Hmmm.....

Sure you'll find pleanty of brokers willing to take the money off you, but you're unlikely to see much of it back.

Lots of people have walked the path you're thinking of walking. 99% of people don't make it to the end.

Excess leverage kills, and the killers are the people who use it, not the brokers they try to blame.

Leave the money in the bank whilst you save up some more. Spend the time doing paper trading on the live markets.
 
Thanks for the reply. Ive been paper trading (DAS platform) for a year with solid results. But I believe without any leverage and 3000usd it will be hard to overcome the fees.

Any additional thoughts? I appreciate honest opinions
 
Well, in the end, its your money.

I'm sure you've heard the old saying "never trade/invest more than you can afford to loose".

So if you can genuinely afford to loose 100% of that 3000USD, then sure, be my guest, use 400:1 leverage.

All I'm saying is that most people tend to follow the old rule of thumb of not risking any more than 1–2% of your working capital on any one trade. In practical terms this generally equates to using cash leverage, or low single-digits at most (e.g. 2:1).

You're talking a lot about "overcoming fees". Perhaps the problem is that the trading style you have adopted is not well suited to low-balance accounts ? Personally, if I were in your shoes, I would not be taking on increased risk just because I need to "overcome fees". I can easily see that ending up with you being in a vicious cycle that's not going to end in a pretty fashion.

I wish you all the best in your trading, but I've said my 2c now ... maybe someone else will come along here and offer you a different opinion more along the more aggressive trading style that you're looking for.

Good luck.
 
Smaller accounts have to take risks. -- or you're not going to get anywhere. -- Even larger accounts as well have to take risks...the name of the game is Money afterall.

But don't necessarily confuse or equate Risk with luck or difficulty. -- Really study and practice and hone your so-called trading talent o_O:confused: ...and then that risk element will be somewhat greatly mitigated.

Basically any online broker will let you open an account with 3K. -- just make sure they are a fairly reputable one, but not too reputable...where you end up paying high retail prices.
 
You've been paper trading. I'd suggest you start doing some real trades with real money - skip the leverage to start and take things from there. You'll be subject to US day trading rules anyway until you have over 25K in your account. If you really want leverage, then try single stock futures but I'd still start with real trades with no leverage as you'll find paper and reality are two different animals.
 
Are u subjected to PDT rule even if you are not a US citizen? (It might be a stupid question)

Anyways, the 'plan' is not to trade on margin unless it is an A+ setup in which case I need to use margin. With such an small account, if I never use margin will be very hard to grow it. I am 100% aware that I can also blow it, and thats fine.

So when it comes to brokers, I see Suretrader and Trade Zero that offer good margin. Any others suggestions?
 
Miguel Rodriguez said:
Are u subjected to PDT rule even if you are not a US citizen? (It might be a stupid question)

Anyways, the 'plan' is not to trade on margin unless it is an A+ setup in which case I need to use margin. With such an small account, if I never use margin will be very hard to grow it. I am 100% aware that I can also blow it, and thats fine.

So when it comes to brokers, I see Suretrader and Trade Zero that offer good margin. Any others suggestions?
More...
I would recommend Interactive Brokers... their commissions are rock bottom and you will be able to get some leverage there.
 
Rob A said:
I would recommend Interactive Brokers... their commissions are rock bottom and you will be able to get some leverage there.
More...

Erm, he's not going to get anywhere near Interactive Brokers with 3000USD !
 
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