Muppet newbie question about IB and US stock regulations

Discussion in 'Retail Brokers' started by pabmove, Jun 13, 2008.

  1. pabmove


    I want to ask someone with experience with Interactive Brokers and US stock trading regulations.

    To open an account with with IB and daytrade, I would need a min of USD25K and you will be considered a pattern trader if you trade more than 4 or 5 times a week. And IB is a US broker so my funds will be in US accounts.

    However, I want to day trade the Japanese stock market. I'm based overseas and not a US citizen.

    Since I'm not a US citizen and I'm trading different market from the US, My question is this:

    Will I be considered a pattern day trader if I trade other markets?

    I 'think' the US regulations shouldn't affect me but I could be wrong. What would be a nightmare would be my account being frozen for 90 days!

    BTW, I've sent over this message to IB to confirm but their CS is terrible at the moment. Already taking 3 days and counting to answer.
  2. Tums


  3. pabmove


    Thank you for your reply.

    Sure, I've searched and find lots of info about PDT.

    What the info doesn't say is if I can day trade from non-US location to trade non-US stocks and being restricted by the 'PDT' rule.

    The reason for the confusion is that I deposited my funds into an IB account which is not based in US.
  4. That was your first mistake.

    Your second is going to be not taking your money out.

    And your third is going to be actually trading through them.

    Good Luck.
  5. I've never understood this PDT rule as I am a futures trader, and have been from the start. We can trade 100 times per day if we wish, and there really isn't much of a min amount to open an acct with (IB used to require 2k, now its 10k).

    What is the reason behind these restrictions in equities? You would think no one would care since you'd be adding liquidity to the markets.
  6. pabmove


    Huh, did I go to evil weird forum?

    Will someone help out or do I have to cry.
  7. pabmove


    ^ sorry jay, my comments for the 2 posts before you.
  8. Crying helps ... there aren't very many guys who trade foreign stocks through IB and are concerned about the PDT posting on this website at 1:30am ET.

    Hey, btw, what markets are you going to be trading ... :D
  9. Tums


    Read the FIRST sentence of IB's page.

    If you don't understand the first sentence, you shouldn't be trading.
  10. pabmove


    boo hoo, just can't stop. The tears ...

    Thinking about Japan as can short too. Nothing wrong with using US brokerage to trade foreign as IB commission is great.

    >T > mmm
    #10     Jun 14, 2008