which brokers offer more than 4x daytrading buying power?
- Thread starter elite1974
- Start date
Robert Morse
Sponsor
elite1974-the Max allowed in a REG_T margin account is 4x. In order to get 6.67X, you need a portfolio margin account.
If someone prefers the broker structure, insted of a prop firm, but still wants good leverage, you can get it here too :
https://alarictrader.com/ (€5k needed, up to 10:1 overnight and 40:1 intraday leverage for larger accounts, located Bulgaria EU) (this one is not for US residents(!))
https://www.tvmarkets.com/ (starts from $3k, up to 30:1 intraday and 6:1 overnight leverage, located Cayman Islands)
https://greatpointcapital.com/what-w...etary-trading/ (located in US, but $5mm needed to get decent leverage as broker)
https://alarictrader.com/ (€5k needed, up to 10:1 overnight and 40:1 intraday leverage for larger accounts, located Bulgaria EU) (this one is not for US residents(!))
https://www.tvmarkets.com/ (starts from $3k, up to 30:1 intraday and 6:1 overnight leverage, located Cayman Islands)
https://greatpointcapital.com/what-w...etary-trading/ (located in US, but $5mm needed to get decent leverage as broker)
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FYI: They also set limits for the most you can have in one stock. The probability of your account going negative before they can find liquidity to sell is greater if it's all in one stock.
Great point Capital is a prop firm itself. Anyways all prop firms can give 20-25x leverage on capital so if someone needs higher leverage that is a better option as you get execution advantage too though will definitely have to share some part of profits
"Portfolio Margin" is the answer. Seems like every broker has different requirements for it.
There are likely income, net worth, and experience requirements. But, they let you put size on in the cash market, which is pretty cool.
There are likely income, net worth, and experience requirements. But, they let you put size on in the cash market, which is pretty cool.
Leverage is a two sided sword. Leverage can destroy anyone but without leverage you do not get rich too. So this is a legal question to ask where to get the most leverage. As I am European I am not tied to Portfolio Margin thingy in the US. But there are some workarounds for US residents too. Everyone trading stocks in a professional manner should know this.
Robert Morse
Sponsor
My 2 cents. As of right now, the notional value of 1 ES future is about $187,000. The current initial margin is $11,000 or about 5.9% of the value. The current VX front month VX future is about 28.30 implying expected daily variation of about 1.77% in the ES future. 25% of SPAN is $2750 and would lose the entire deposit after an adverse move of about 1.47%. IMO, 25% of SPAN is aggressive as that is less of a deposit then daily movement. The FCMs that offer VERY low ES margin is not something I would recommend to an account with a low balance and little access to cover losses.
Robert Morse
Sponsor
I agree with you. Leverage in itself can be dangerous. Even though PM offers higher leverage, it is designed for those that hedge or qualify for risk based margin similar to what is offered broker dealers. FINRA and the OCC expect you to use options to hedge, even though that is not required. You need to qualify for the highest option level to get PM. On a side note, we do offer PM to foreign accounts that qualify.