Tomkat, I would agree, except the 90 day hold on the account is the real issue here. Basically he can't day trade for 90 days and if he does, the account will be turned into a cash only account. Transferring to another broker solves this issue. I also agree with OldTrader to not do a direct transfer to the new account, just to make sure the old broker can't somehow warn the new one of your margin issue. Not that it would happen, but you never know.
I agree with you but I had picked up low priced shares in Feb 2009 and would like to keep them, plus I do not wish to have to report a profit yet on them, since I have not sold them. So I will try and take my chances with a new broker. If the first one reports the issue to the new broker, I will change again to another broker until I find a decent one. Can I ask who do you recommend? I found sogotrade, but there were some bad reviews about them back in 2009, but this is 2010. Any ideas?
think or swim are expensive in comparison to other discount brokers, especially if you're day trading. On the average my fees to my broker is above $100 per day making about 30 trades roundtrip per day. When you scalp for profits every $ counts. I was looking into just2trade, sogotrade, and optionshouse. Any body recently used any of these three? Plus if you know somebody else that would be great.
Jesus, retail trading sucks. My advice is pull it all out of wherever you're getting fucked right now and find a good prop broker. If you have more than $5K, fuck the day trading rule.
That certainly is a viable option for someone who wants to trade a lot but lack enough capital to get over the PDT rules. Note that leverage is always a 2-sided sword... that it can benefit or hurt you just as much.