Day trade US market with less than 25k account ?

Hi, is there any way to day trade (more than 3 trades / day) the stocks US market with less than 25k ?

For example, if I open a cash account at a broker, without margin, can I avoid the "pattern day trading rule" if I have less than 25k ?

Cordially,
koros

 

It's a Federal regulation.

I think brokers give you a limit of 3 incidences per week or something like that. If you have 3 incidences, the account will be frozen for closing transactions only for 30-60 days.

Never put much thought to it since I don't like to play those games. Perhaps, you can trade Single Stock Futures?

 

The way you can see it :
* learn to become VERY patient before taking each trade
* learn to be SUPER prepared before each trade
So this "limitation" gives you the CHANCE ( ) to practice patience, trade selection,
selecting very high probability trades.
Why complain?

 

For non-US residents there are some brokers which offer that. For US residents AFAIK there are some prop-shops which make it possible as well.

 

I have a margin account with IB, so don't know from personal experience. But it's my understanding the PDT rule only applies to margin accounts, not cash accounts.

However, you might have practical issues with settlement delays if day trading with a cash account? And no shorting.

http://www.google.com/search?q=pattern+day+trader+rule+cash+account

 

One can trade CFDs on US and European stocks on IB with very less margin and no shorting rule.

 

For cash accounts it varies from broker to broker. Most will allow you to make more than 3 trades per 5 day rolling period, since a strict interpretation of the PDT rule only applies it to margin accounts. However, from a practicality viewpoint it's virtually impossible to day trade with a cash account because your money is tied up clearing the transaction for 3 days anyway.

The bottom line is that you need a margin account to day trade. There's no real way to get around it. I suppose you could divide your money among different brokers and use a smaller position size, but you would still be limited to how many trades you make.

 

if you are trying to day trade with less than 25k and no margin. where are you getting the money to make trades using unsettled funds anyhow?

 

Yes, trade futures. YM or ES will give you great opportunities daily.

 

Exactly what I came in to say.