Yes, you must have a series 7. TraderJim would be the best person to speak with about Echo, since he trades there.
Here you go guys, Protrader put out a pretty definitive page on what the new rule entails: http://www.protrader.com/nl/07022001c.html -Jim
Why should my funds take 3 business days to settle? Where is that written ? The 3 business days isn't referred to the number of days "A customers " has to settle a trade ?If I have the cash in my allready in my account to pay for those stocks ,what's the problem?? Angela. I think I;m going nuts after this SEC RULING
akhuto, You may wish to read what I have written here. There may be hope for trading in a cash account and not having to wait for 3 days: http://www.elitetrader.com/vb/showthread.php?threadid=2041
The SEC is taking a bit of a bum rap on this issue. They did not initiate the $25K rule, they promulgated it at the request on the National Association of Securities Dealers. Perhaps not surprisingly, the NASD did not request the rulemaking to protect small investors from themselves. Instead, as might be expected, they were more concerned with small traders using margin being unable or unwilling to cover their losses. I suspect that this is a function of some NASD memebrs not having back office systems as good as we think or expect them to be. The history of the issue is there to see on the SEC's web site.
If it is NASD concern that a small investor will not be able to cover their losses from margin, they could just let them trade with cash. I mean if they lost all their cash, that's it... No problem for NASD at all. Why come up with such complicated scheme that IMO serve up to no purpose. And what about giving account with $25K a 4:1 margin. Isn't that going to increase margin risk overall by encouraging larger trades? Well, unless NASD think that trader with less then $25K is just not good enough for the daytrading game... but from the way i look at it, the people who did this policy is just plain silly.
Akhuto The bottom line on the 3 day rule is they want to operate on your money not you operate on your money for the three day period. I'm glad some of you posters are waking up to the gravity of the screwing you are about to recieve. When they freeze your browser and tell you of your violation say, "Aw Shucks just send me my money". If enough traders do this their will be a rapid reversal of this ruling(1 Year MIN). They do not want us wheeling our own money around, they want to wheel our money around. That was the purpose of this whole episode. Also I feel this ruling will impede the recovery of the stock markets for YEARS. A awful lot of people will start to lose interest. You do the same, put or trade your money elsewhere. Fook them!
tradex, If you're talking about IB, you are off base. Direct Access brokers have voiced their opinions to the SEC (e.g. see IB's and Datek's comment letters). The firm (IB) is regulated by the NYSE and until the legal and compliance group are satisfied with how the NYSE and regulators will interpret and enforce the new rules it is prudent for a firm to take a conservative approach. If the firm was really after the float, it would afford real time buying power on the large accounts. Who are for the rule: specialists, larger brokers, nasdaq market makers etc. You somehow believe that if all the under 25K accounts pull their money from the market the market will not recover. Give me a break. the accounts you are talking about are day traders. are day trading accounts supporting the market? An arguement can really be made as to whether or not they truly provide liquidity. In any event, the powers that be seem to want to turn smaller day traders into investors.