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Old Jun 22nd, 2011, 11:51 AM   #1
Kat-Man-Do
 
 
Join Date: Jun 2011
Posts: 5
Hello to all! New to the forum, so I hope this question is in the right forum. I did a quick search and could not really find an answer.

I am trying to find a broker that is friendly to day trading. I will trade in and out of 2 stocks 2-6 times per day (meaning 4-12 buy/sell), depending on the market direction. I am currently making 1-2% per day after trading fees so I am happy with that return.

But large name brokers (for some reason) want to limit the number of trades. (they don't want to make money I guess) They say have a $25k account for Day Trading, so I put in $30k. Then they say, oh you are a pattern day trader, so out of $30k, they only let you trade with $7k.

What Brokerage would I sign up with that is willing to let me go at it the way I want, that has reasonable fees? Or am I just dreaming?

Thanks,

Kat
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Old Jun 22nd, 2011, 02:33 PM   #2
NoDoji
 
 
Join Date: May 2008
Location: Location Location
Posts: 9,469
Quote:
Quote from Kat-Man-Do:

But large name brokers (for some reason) want to limit the number of trades. (they don't want to make money I guess) They say have a $25k account for Day Trading, so I put in $30k. Then they say, oh you are a pattern day trader, so out of $30k, they only let you trade with $7k.

What Brokerage would I sign up with that is willing to let me go at it the way I want, that has reasonable fees? Or am I just dreaming?

Thanks,

Kat
When you're designated a pattern day trader, you should have around 4x your account value to trade in and out all day long with nothing tying up your margin unless you hold a position overnight. That means your 30K account gives you around 120K to work with, as many trades as you want.

The brokers that I know handle it this way are Ameritrade, Etrade, IB and Scottrade.

Who is this "they" you're referring to?
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Old Jun 22nd, 2011, 03:08 PM   #3
scorpion
 
 
Join Date: Apr 2006
Posts: 485
it sounds like your new to trading ? all brokerage firms are open to active traders. try.. Interactive brokers very popular broker.
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Old Jun 22nd, 2011, 03:35 PM   #4
Kat-Man-Do
 
 
Join Date: Jun 2011
Posts: 5
My broker is Trade King. I believe this has to do with a large position held overnight, so that the morning cash balance was low. For some reason, I guess they only look at the morning balance which doesn't quite make sense to me. I sold the stock this morning which means the cash is back in my account, so I should be allowed to trade with the entire amount in my opionion. I see no difference of when the cash came back in, day trades vs. an overnight position.
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Old Jun 22nd, 2011, 03:47 PM   #5
Kat-Man-Do
 
 
Join Date: Jun 2011
Posts: 5
I tried to reply but I guess I am not active yet.
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Old Jun 22nd, 2011, 04:22 PM   #6
hajimow
 
 
Join Date: Mar 2004
Posts: 2,728
Quote:
Quote from Kat-Man-Do:

Hello to all! New to the forum, so I hope this question is in the right forum. I did a quick search and could not really find an answer.

I am trying to find a broker that is friendly to day trading. I will trade in and out of 2 stocks 2-6 times per day (meaning 4-12 buy/sell), depending on the market direction. I am currently making 1-2% per day after trading fees so I am happy with that return.

But large name brokers (for some reason) want to limit the number of trades. (they don't want to make money I guess) They say have a $25k account for Day Trading, so I put in $30k. Then they say, oh you are a pattern day trader, so out of $30k, they only let you trade with $7k.

What Brokerage would I sign up with that is willing to let me go at it the way I want, that has reasonable fees? Or am I just dreaming?

Thanks,

Kat
If you have over 25K, and your broker still puts you in pattern daytrader list, buy a Nike running shoes and run away from that broker as fast as you can. Then buy a dart and put the broker's name on it and practice

And if by "kind to daytraders " you mean you need attention and will call your broker around the clock and flood them with lots of basic questions, maybe good brokers will also get annoyed. Go with IB and you won't regret.
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