requirements for opening new daytrading account

Discussion in 'Professional Trading' started by Kris, Nov 3, 2008.

  1. l2tradr

    l2tradr

    You might be right. The other 3 I mentioned don't though, so the OP can stick with that.
     
    #11     Nov 3, 2008
  2. Kris

    Kris

    Okay, good info.

    Just to clarify, if I open a cash account with a CDN broker (under $25k), I can only trade CDN stocks, is this correct? Or can I trade both CDN and US without PDT problems so long as my broker is in Canada?
     
    #12     Nov 3, 2008
  3. Kris

    Kris

    bump
     
    #13     Nov 3, 2008
  4. schizo

    schizo

    Regardless of whether US or CDN stocks can be traded, it's worth noting that you won't be able to short individual stocks if you open a cash account. However, you're still able to buy short and ultrashort ETFs as well as buy option puts (once you're approved to trade options).
     
    #14     Nov 3, 2008
  5. Kris

    Kris

    So if I have a cash account I can't short but I don't have to worry about PDT? If I have a margin account less than 25k I'll get flagged for PDT on multiple trades?

    Sounds like I need to have a $25 k margin account...
     
    #15     Nov 3, 2008
  6. l2tradr

    l2tradr

    Both US and Cnd. You need a margin account to short though.
     
    #16     Nov 3, 2008
  7. l2tradr

    l2tradr

    Kris, you're confused. If you open an account (any type) with a Canadian broker, there is no PDT rule. If you open a cash account, you can't short. If you open a margin, you CAN short as well and there still isn't a PDT rule.
     
    #17     Nov 3, 2008
  8. holy shit dude contact the broker you are interested in and ask them the questions you are asking here. If you can't do that then i have no idea how you know how to trade.

    good luck
     
    #18     Nov 3, 2008
  9. AAA30

    AAA30

    Also you should know that with a cash account you will need to wait for settlement(3days) on trades for cash to clear. If you plan on day trading only use a margin account. I would reccomend using IB because they are the cheapest on a pershare basis for both TSX and US stocks in Canada for retail. Just keep your balance over 25K because they do inforce the US PDT rules.
     
    #19     Nov 3, 2008
  10. If you open an account with Interactive brokers Canada, the PDT rules is in effect at least on US stocks, don't know about foreign
     
    #20     Nov 3, 2008