Pattern Day Traders Criteria and Restrictions on IB

andrey_tech · Jul 13, 2005

Pattern Day Traders are required to hold a minimum of $25,000 USD in equity (or USD equivalent), and therefore those customers without this minimum equity and who have completed three day trades within five business days will not be allowed to enter another trade.

* Is it only for U.S stocks or also for European and Canadian stocks ?

* All this restrictions are the same on all U.S states and all brokerage firms located in U.S.A ?

JangoFolly · Jul 13, 2005

I don't know about non-US equities, but there are no such restrictions on futures and options on futures (although I'm not sure about single stock futures).

andrey_tech · Jul 13, 2005

Is there any IB user here, account less than 25 K ?

andrey_tech · Jul 14, 2005

It looks this restriction cover all the markets including non U.S. Am I wrong ?

nyc-hotshot · Jul 14, 2005

Its an NASD/SEC rule (NASD rule 2520), the restriction is the same for all US brokers.

There are foreign brokers who will allow you to pattern day trade under $25,000 like http://www.alldaytraders.com (Alliance). I know some people who use them and they do pattern day trading with less than $25,000. Their commissions are definitely on the higher side, probably because they are the only firm I know of out there that lets you do this.

PhillyTrader · Jul 14, 2005

...Does not apply to Futures nor Stock Futures

andrey_tech · Jul 14, 2005

I mean by using a U.S broker with less than 25 K account can we day trade without restrictions on Canadian or European stocks ?

andrey_tech · Jul 14, 2005

Is that too hard question and/or no one asked before ? Or is that too dump question ?

Simply I need to learn if I can day trade without limitations in Canadian stocks less than 25 K account.

jmccain · Jul 14, 2005

Currently you can daytrade canadian stocks (without the PDT limitation) using IB. (For now)

BUT. Canadian stocks are much less volatile and commission is .02$ per share.

Quote from andrey_tech:

Is that too hard question and/or no one asked before ? Or is that too dump question ?

Simply I need to learn if I can day trade without limitations in Canadian stocks less than 25 K account.

andrey_tech · Jul 14, 2005

Thanks for the answer. I assume that your - for now - text is only protective not from a fear.

Quote from jmccain:

Currently you can daytrade canadian stocks (without the PDT limitation) using IB. (For now)

BUT. Canadian stocks are much less volatile and commission is .02$ per share.