OK, this is not my area of expertise and I have no relationship with this broker. I just started this thread out of curiosity. But I'm going to paste exactly what Tim said about these guys. He says nothing about being a dual citizen. I hate giving Tim any attention but here are his comments:
UPDATE: It takes 4-5 days to open a SureTrader account right now because of all the demand due to them giving people special free features when you mention my name and because theyâve had shares to short on pumps like RAYS/BVSN. (See how my students and I just made $50,000+ in a week shorting RAYS thanks to this great new broker).
So please be patient and if you email me asking questions about this new broker, Iâm gonna come to your house and smack you, email all questions to
support@SureTrader.com and have patience there too because they are SLAMMED right now, Iâm just a proud customer and affiliate, I will NEVER answer questions relating to taxes, compliance, the PDT rule, leverageâ¦all that fun stuffâ¦this is the opportunity of a lifetime, donât you dare mess it up or ignore it.
As I announced the other day, I have a new favorite broker, which Iâve been testing out the past few weeks and with whose CEO I was meeting with down in the Caribbean over New Yearâsâ¦when you open an account and use my name as the referral, I got them to offer you some cool features for free, something nobody else can claim
This is a Bahamas-based company that clears through US-based clearing firms and this setup opens the doors to some VERY appealing features as their CEO was kind enough to chat about on Fridayâs LiveStock on demand.
1. SureTraderâs best feature is that their clients are not subject to the Pattern Day Trader Rule. (This is an SEC rule that disallows people with under $25,000 from executing more than 3 day trades in any 5-day rolling periodâ¦aimed at protecting new traders/investors from blowing up, it unfortunately also SEVERELY impairs the growth potential for small accounts)â¦trade as much as you want (within reason)!
2. I have opened a $50,000 account with SureTrader, but their minimum is just $2,000. This is HUGE for those of you with small accounts. Previously they only cleared through Penson â like their CEOâs sister company SpeedTrader & my favorite onshore broker Thinkorswim â but thanks to my haggling and the tremendous demand for shorts on hard-to-borrow stocks, they also now clear through my special broker whose minimum is $40,000 and 500,000 shares trader per monthâ¦so in essence SureTrader is a FAR less expensive way to get the same borrows that only my special broker previously had access toâ¦all you need is $2k now instead of $40k.
3. CEO Guy Gentile (referred to as GG in this past LiveStock episode posted above) built his other company SpeedTrader from nothing into a $20 million/year business in just a few years â verified by being on the Inc. 500, which rigorously examines and verifies company financials â so heâs willing to have SureTraderâs trades clear through several sources â basically wherever we find shares available to short â in order to make sure SureTrader is THE all-in-one broker for short sellersâ¦he just wants commissions so he needs to find the shares to short in order to get his precious commissionsâ¦I look forward to SureTrader clearing through more firms to get even more borrows for us!
4. Speaking of commissions, itâs just $4.95/trade for up to 1,000 shares, making it one of the cheapest firms out there and while there will be premiums paid to short sell hard-to-borrow stocks, as weâve learned too many times in the past even if you have to pay 1 or 2 cents/share shorting pump and dumps.
5. Also because they are offshore, take away that pesky US rule where when you short any stock under $2.50/share â whether its 10 cents/share or $1/share â you have to put up $2.50/share to cover the trade ie if you want to short 50,000 shares of a 10 cent/share stock, while it should only cost you $5,000 (50,000 x .10), in the US you need $125,000 (50,000 x $2.50)â¦this has limited me BIGTIME when shorting stocks like PEIX, WLOC and RAYSâ¦they will knock that $2.50 rule down to $2/share, which is HUGE for shorting large amounts of low priced blatant pump and dumps like POTG, MILV, ABOT, NSRS, SPAHâ¦all of which crash 99%+ time and again. For larger traders, I wouldnât be surprised if you could negotiate personally with Guy to get him down to $1.50/share or even $1/share as opposed to all the suckers in the US stuck forever putting up $2.50/share!
BONUS: I donât use or recommend using leverage, but I know some of you like it and employ it to grow your profits even faster so far be it from me to stand in your way, this firm offers 6 to 1 leverage and soon theyâll have a plan for 20-1 leverage so have fun, but remember with great power comes great responsibility.
Is having an offshore broker right for you?
I have no idea if itâs right for you, consult your accountant and lawyerâ¦itâs DEFINITELY right for me and a ton of people looking to escape the PDT rule, get great borrows on shorts and all the cool benefits detailed above.
2. Will SureTrader always have shorts on hard-to-borrow stocks?
Not at all, sometimes there are NO shares whatsoever to short â like when the pump and dump AMWI dropped from $1.40 to .30 in 2 hours (what a waste!) â but these guys will have the best inventory around for reasons stated aboveâ¦if you are a short seller of penny stocks, youâre an idiot not to use SureTrader, even if only for a small piece of your portfolio, and not use their unique features to enjoy greater profits.
3. Are there monthly fees?
Yes, but theyâre minimal depending on what software option you chooseâ¦nothing more than $200/month and more to the tune of $50/monthâ¦thereâs definitely a free option too, but itâs all new so ask their customer support and remember to mention my name so you get 30 free trades (pays for a few monthsâ worth of fees for freeeeee)
Will I personally move all my assets over to SureTrader eventually?
No, even though this broker is amazing and should forever revolutionize short selling penny stocks, itâs still offshore so itâs inherently riskier than having $ in the USâ¦this will be a small part of my portfolio (currently under 10%) and it will likely grow to be a bigger piece of my portfolio, but never account for all my assets. While I have no idea who 99% of my readers are, I suspect this same type of conservatism will serve them well; for now SureTrader is simply a new and better way to short sell and trade penny stocks so Iâm extremely proud to introduce them to you.
6. Why are they taking days to get back to me, can you help Tim?
I cannot help and itâs actually my fault â ever since I unveiled this brokerâs many benefits, theyâve been overwhelmed with new accounts from people looking to escape the PDT rule and actually get good borrows with just account sizes of $2,000-$10,000. Give them time and be grateful for their existence in the first place
