I was talking about IB. You could open 10 accounts if you want. Or 20. On IB you can instantly transfer funds between accounts, with no fee. So if you're daytrading stocks, once you reach 3 daytrades limit on one account, just send your money over to the next account. We can work around this stupid rule!
Wow... that's cool. I guess that's the best way to do it. But is there a catch to it? (in using multiple accts)
won't work. i doubt IB will allow you to open like ten pissy little accounts with them. you're going to need at least ten accounts you know to try any real daytrading. and if you could open ten accounts that means you have 25K now doesn't it.
How come my comment and opinion on rapist PDT rule in this thread were deleted?!! Are you also one of the special intrest goup who want to rape small individual investors?
IB says they would close multiple accounts used to get around PDT rules. However, the rule is per account and not per trader. It might have been a good idea if I had kept my mouth shut about it. You could still open more than one account just as a back-up as long as you're not conspicuous about it by regularly shifting funds every day. There are also other brokers besides IB. In the meantime, you're stuck having to hold stocks overnight, or trading futures and SSF. Or borrowing enough money to bring your account up to $25,000.
They say no, eah?! Not a surprise. Let me be picky on IBagain (and I don't care to be cursed for I express my unpopular opinions regarding IB here. I am nonreligious). Why is it not okay open multiple account for day trading purposes? Yes, they should be technically okay. PDT rules ensure the risk is bound to the account where the risk occurs. Since IB just wants to piss you off, IB says no to you in general. Actually there is no reason. First, you will not be able to transfer money before settlement as I understand. Second, you need minimum initial deposit anyway. Given this two criteria, you should be able to day trade with whatever many accounts. And any good broker should say yes, come to us open and fund as many account as you want. IB doesn't?!
By the way, say NO to IB. For example, No SSF whatsoever. They are extremely risky (at this moment) to small traders. There are many other ways to say No. I told you that you will soon have had enough with 'em one day.
The minimum initial deposit of $2,000 needs to stay in the account for two business days after initial funding, to get the account activated properly. Once the account is activated, the account balance can go below $2,000. You will not be able to use margin at any time that the account is below $2,000. In a margin account, you should be able to transfer funds immediately, especially when you are transferring from one account to another account at the same brokerage, without having to wait for three day settlement. IB doesn't want to get into trouble, these days that the SEC and every other federal agency are going over everything with a finetooth comb. The federal agencies are highly interested in snooping out anything that might be even slightly perceived as deceptive and fraudulent activity. Everything, except for the one glaring fraudulent example of election tampering. Is there a connection? Is all this anti-fraud scrutiny merely an attempt by the biggest most corrupt fraud of all to distract all attention from itself? You bet it is. In the meantime, IB doesn't want to get into any hot water. Can't blame them. We can work around these restrictions, but we will have to be more quiet about it. Just don't make yourself obvious.