"if i purchase stocks and sell them at a lower price IB TAKES THE DIFFERENCE OFF MY ACCOUNT" I sometimes wonder if they dont take the other side of your trades. It seems to me that if I was a broker and I could take the other side of new traders I could make a lot of money. The small percentage that became profitable you would simply stop taking the other side. I dont have any problem with it, just curious.
They do. Constantly. Look for TMBR executions against your equity orders. As for the PDT rule, I've always wondered why the SEC seems to believe that it's good to have less liquidity in the markets, but then again, they're not traders...if they were, why would they be for the government (with the exception of the upper level SEC clowns)??? In my experience it's always been pointless to argue with someone who doesn't understand the real argument. Maybe if the people who ran the SEC understood anything about trading, which they obviously do not, the markets would be a better place.
It seems IB is the only broker that has this 25k min daytrade rule, other brokers I call are accepting 10k accounts. The problem they told me is IB register themselves as a daytrade firm, while they register themselves as a online trading firm. The search for a broker continues.. arghhh
Toronto, It took IB 2 years and an incredible amount of heartache to gain its Canadian Brokerage license - it isn't in a strong position at the momement to question the regulators restrictions. Perhaps if the exchanges and some of the larger brokerages get their acts together you might be able to trade Single Stock Futures before we are all old and grey. Until then, accounts under 25K will just have to swing trade with IB or go elsewhere. You can't be all things to all people. gaj, the mgmt of IB has beaten the topic of the under 25K rule to death with the NYSE. Fohat has made some great posts on the IB website forum which were followed up by mgmt . Rather than rehash things, read the thread before taking the stand that IB doesn't care about the rule.
Take a look at Echo - they allow 10K accounts I believe: http://www.echotradeonline.com/ Bright may also allow 10K accounts, but I do not know: http://www.stocktrading.com The only "downside" is that you will have to get series 7 as they are professional firms. nitro
Hope some of you guys can answer this. IB help desk cant!! If I have $25,000 cash in IB and I buy $1000 worth of options and the options neither appreciate or depreciate, my account will be composed of 24K cash and 1K in option market value. As it pertains to the PDT rule of 4:1 margin, will I be under the 25K since my cash is at $24,000 or am I still ok at 4:1 since my account equity is still $25K. Thanks Def help!!
Learn to trade futures... got to give IB props for coming to canada. Its the SEC with their BS rule that is causing problems, not IB. Would you prefer trading with BMO Investorline?
I just checked with IB after reading your message that IB allows day trading if your account resumes to 25k. If it is below 25k, and you are tagged a PDT, then you are barred from trading for the next 5 days. You won't even not able to trade with your cash. Datek allows day trade with your cash amount. But you can day trade with future. SEC rule applies only to stock, not on futures
def - i'll read the topic later, but my post reflected my call...when i talked to the IB person on the phone, he said (in the same 'tone) the words, and context, as i typed. as i said, however, i really really really like ib...the problem i had was i was moving money between some accounts, a new house, and was able to continue at all my other brokerages other than IB.