cash account

Fohat,

I'm not going to get into a this 'n that with you, as you seem to be firmly planted in the shoulda coulda woulda approach, and while I admire your tenacity I don't agree with you.

The thing that can change at any time (i.e. brokerage policies) doesn't really matter. What matters is the governing law

No, what matters NOW is how the brokerages interpret the law. Maybe they will change their policies to accomodate your interpretation of the law, maybe they won't. When and if they do, then that will be what matters then. Again, not your interpretation but their policies.

Almost all law and regulations are subject to extensive interpretation, that's what the various levels of courts and governing bodies do -- continually render judgments as to their interpretation at that particular time. And even those interpretations are often open to later and further interpretation. I wish it were all so simple, so carved in stone as you suggest, but it's not that way in the real world.

You can argue until you're blue in the face that daytrading in a cash account is perfectly legal under all current regulations, but if IB (for instance) doesn't allow it then that's the way it is now. And if IB later changes their policy, either because of re-interpretation or because of customer migration, etc. then that's the way it will be then.

In the meantime, I previously posted what Cyber's interpretation of trading in cash accounts currently is for those dealing with them or considering an account. Quite simply, as with IB's interpretation of no daytrading in cash accounts, if you don't like Cyber's interpretation of daytrading in cash accounts then take your account elsewhere assuming you can find someone who accomodates your needs and desires. Or keep tilting at windmills.

 

Fohat,

It's not correct to say that a brokers ephimeral choice is "that's the way it is". The law is "that's the way it is". The law endures, not the ephimeral brokers choice, that can change any hour.
Actually the broker's interpretation or "choice" as you put it, is the way it is. Until it's not. If you don't believe it, try daytrading in a cash account at IB right now. And laws and regulations can change at any time also.

I understand your point Magna: all should accept what their brokers choice/restrictions/offer is , accept no matter what the broker choice is because "that's the way it is", they should give up any demands because "that's the way it is", and they should obey their brokers choice because "that's all that matters", like complete loosers or move elsewhere. I don't agree with your pessimist looser approach.
I never suggested that you can't petition a broker, petition the SEC, or change brokerage houses. Not sure where you made that up from? Maybe your petitions will be successful, maybe not. And maybe you consider dealing with reality a pessimist loser approach. I don't.

You suggest all cash accounts with <25k give up and move.
Again, I never suggested that so I'm not sure where that was plucked from the air? I said if you don't like your broker's interpretation of various laws and regulations then you would probably be better off trying to find a broker more suitable to your needs if you can. It's the capitalist way.

everyone of them should demand that his/her broker provides daytrading in cash accounts.
I agree that broker's should comply with regulations and laws, and that if you are so inclined you demand compliance of your broker. Maybe they will heed your demands, and maybe they won't.

My point was simple and you seem to be twisting and turning it. I like to deal with what is (kinda the same way I deal with the market, not what should be). If I don't like the way my broker runs things, and I can find a good alternative, then either I stay put and make demands as you suggest, or I can move on and put my energies into trading. That's everybody's individual choice.

 

AAAintheBeltway,

Brokers can and do allow daytrading in cash accounts and provide instant BP updates. Of course, they don't have to, as Cyber and some others have apparently chosen.
Unlike IB, Cyber does allow daytrading within a cash account. I was merely posting their methodology of updating the buying power.

I don't want to name the one I am using for fear they will change policy, but rest assured it is a big, well-known one and i just did it and watched BP go down and return to beginning of day figure.
As a new member of Elite Trader I am sorry you feel that naming a major broker will alter their policies, but so be it. BTW, Cyber also immediately updates buying power, but unfortunately it's not accurate at this time as it implies that you can use the money in your cash account more than once in a day. I am told this is to be corrected in the next revision.