Just starting out...choosing broker

Discussion in 'Retail Brokers' started by bbb2, Feb 28, 2004.

  1. bbb2



    Im 19 and just beginning investing. What broker would you suggest me?
    I thought about interactivebrokers.com, but im not sure.
    I have $2000 to start with.
  2. What r u going to trade with 2000?

    stocks? PDT rule will apply

    futures? undercapitalized

    I would probably swingtrade some etf's.

    PS: with IB, in order to open an account or to open new positions in an account, you must have the following minimum account equity (cash and securities): usd 2000.
    So I would say, you need at least 2500 -3000 to be a little bit comfortable.
  3. Read "New Traders Thread"
  4. IB is a good broker, but not for a complete newbie. They are efficient and cheap, but they won't hold your hand and teach you how things work.

    I would get some experience with a full service discount broker first, then switch to IB.

    Also, if you wish to trade pit commodities, IB won't work (electronic only).

  5. with $2,000 you are so very limited. your just not going to be able to do much. futures are out of the question with less than $5,000. stick with someone simple like scotttrade. be aware lots of brokers in stocks have an inactivity fee.
  6. bbb2


    Thank you for your replys.
    Althouht $2000 isnt a lot, i can add atleast $700 / month.

    >> Also, if you wish to trade pit commodities, IB won't work (electronic only).

    This might be a stupid question, but what are commodities, are they some sort of stocks?

    >> be aware lots of brokers in stocks have an inactivity fee.

    I keep that in mind.

    >>PDT rule will apply

    What is PDT rule?
  7. commodities are the futures markets like big and emini s&p, nasdaq futures, bonds all the grains, hogs the list goes on and on as oppossed to equities (stocks).

    also since you small size, you wouldn't be able to day trade stocks/equities.
  8. Idoogye


    Wait until you have $5000 before you even think about opening an account and trading. While you're getting that $5000 together, educate yourself! Read everything on the websites of the stock exchanges and the commodity exchanges, like CME, CBOT, NYBOT. Read everything you can find on the web about investing and trading - except for those sites which promise you the moon and try to sell you expensive courses and software. Instead of buying expensive trading books, borrow them from a library. You need to reserve as much of your money as possible, because when you do start trading, you'll have to pay a hefty tuition to learn in the marketplace what can't be taught in a book, class or seminar.

    Still up for it? OK, "Commodities" are futures contracts (soybeans, pork bellies, sugar, silver, treasury bonds/notes, crude oil, market indices & etc). "Equities" are shares of stock. Different trading arenas.

    PDT = "Pattern Day Trader" rule. It applies to anyone in US who tries to make more than 3 (stock or stock option) daytrades in a five-day period without having (and maintaining) a minimum account balance of $25,000. Violate this rule and they can bar you from trading for 90 days! (Doesn't apply to commodity futures trading.)

    Daytrade = Buying and selling the same stock or stock option on the same day.

    There aren't any stupid questions when one's a greenhorn, so don't be timid about asking 'em. How else will you get answers?
    I should have asked more and assumed less when I was new. :(

  9. PDT rule---you need a minimum of 25k to daytrade stocks.

    you should trade options or the e mini dow contract. you can open an account with global futures for 2500.00 and day trade 1 contract with just 500.00 margin. check them out www.daytrade4less.com if you decide to try option trading www.thinkorswim is your best bet for education and platform.

    best wishes,

  10. GGSAE


    I would strongly consider going the prop route, one that offers a reduced payout but doesn't require any of your own capita. You could always leave this place once you learn the basics...
    #10     Feb 28, 2004