Pattern daytrading with <25k, offshore accounts

Discussion in 'Trading' started by dirtybrown, Jul 17, 2007.

  1. I want to open a daytrade account (w/ level 2 quotes)for say, 2 grand? I found one broker located in Jamaica that offers such a service->
    http://www.alliancetrader.com/

    Has anyone heard/dealt with them?
    I realize the risks, just gathering information right now. Thanks.
     
  2. how can u daytrade with $2k ? If you're trading equities, and want to make a good buck, you need at least a $10k position size for stocks over $20.........and thats being conservative.


    Many brokers that waive the pattern daytrader rule charge you high commisions ($20 round trip usually). With a $2k account, thats 1% of your account.
     
  3. Although I agree with you if he is trading stocks over $20, he can still daytrade an account with only $2k if he's doing pennies.
     
  4. Don't think any reputable broker will waive the 25k minimum for day trading, as it's a SEC regulation.

    Altough I'm not sure if the 25k applies to foreign investors. You'll have to check with your broker.

    Anyhow for dirtybrown swing-trading might be a great way to get into the stock market. For small accounts you might need to use leveraged ETFs (like DDM), to get over commission costs.
     
  5. I realize that, actually Alliance will give you a 1:4 margin, I can foot a 2.5k dep.

    7.95 per trade comm., the part they get you on is a $50 charge to withdraw.
    Given the alternatives this seems acceptable
     
  6. At one time when I had an account with Financial Cafe, I had a 2K account and averaged 200 dollar per day but the market orders were free. When they started charging 3 dollars a side for market orders, my edge went away.