IG Disagrees With Pattern Day Trading Rules

ETJ

ETJ

IG Disagrees With Pattern Day Trading Rules
Anna Lyudvig - Traders Magazine
IG North America, an online derivatives trading provider, is working with the US regulators to modify rules around pattern day trading, according to CEO JJ Kinahan. "We're working with the Industry, attempting to modify this rule, to allow people who have lesser accounts to still participate in the market setup in a full way," he told Traders Magazine. The pattern day trader rule is a regulation set by the Financial Industry Regulatory Authority (FINRA), a trading governing body in the US, 'to discourage people from trading excessively'.
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The PDT rule should be completely abolished & scrapped.
Then the same rule should be applied like in a cash account: ie. you can use the account value only once per day (due to T+1 settlement rule)... Of course in a Reg-T margin account the limit would be the usual 2x or 4x credit margin...
 
maxinger said:
What strange news.

Why IG is so special?
More...
All animals are equal, but some are more equal :)
Why are other brokers not complaining?
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They are conditioned to accept every shaet of big brother :)
Conditioned by the sicko mentality "Either you are with us, or against us"... :)
 
earth_imperator said:
The PDT rule should be completely abolished & scrapped.
Then the same rule should be applied like in a cash account: ie. you can use the account value only once per day (due to T+1 settlement rule)... Of course in a Reg-T margin account the limit would be the usual 2x or 4x credit margin...
More...

I never understood how giving 4x on a $30,000 account taught the new ones risk management. I did a great job of screwing myself up during 2x days.



I remember a moron at a church attended in 1999. He received a settlement and a seven figures inheritance($7 million at least.). Dummy blew out 80% before quitting and having his wife exit. How would the PDT rule have helped him? If he had 4x BP, he would have lost everything?
 
As long as they don't change the threshold of the PDT rule then it is being inflated away over time.

$25,000 these days is like $15,000, compared to when it was introduced.
 
When I traded DMA so Direct Market Access on stocks with IG, I noticed in Sterling Trader Pro that they do not hedge at all any trades going through IG trading platform because there was no such volume at all in Sterling when I watched the ticker and Level 2 data, so yes, they only want to take the other side of any trades.
 
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