Under 25K traders, what's next for you?

Discussion in 'Trading' started by roger2, Sep 23, 2001.

  1. Yoda

    Yoda

    Zarrar,

    If you talking about cash accounts, please read my long (and painful) thread on the subject and tell me what you think.
    http://www.elitetrader.com/vb/showthread.php?s=&threadid=1951&perpage=6&pagenumber=1

    This is not exactly a clear issue, the new rule may not effect cash accounts, but brokers are very reluctant to update accounts real-time, including IB, great broker, by the way.

    By the way I just spent few nights studying rules from SEC http://www.sec.gov/ and now NYSE http://www.nyse.com/


    Good trading,

    Bob

    P.S. That is unless you're willing to trade all your cash worth every 4th day. This may be even worse than new margin rule by itself. Or pay $20 per trade with Cyber, that is before their software charges.
     
    #11     Sep 24, 2001
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  2. Zarrar

    Zarrar

    Yoda,
    In the case that one could find a broker that updated funds in real time, such as datek, then there would be no problem i assume. Is that how it goes.
     
    #12     Sep 24, 2001
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  3. Magna

    Magna Administrator

    Yoda,

    Or pay $20 per trade with Cyber, that is before their software charges.

    Not that they're any great bargain, and of course IB's orders are considerably cheaper, but wanted to set the record straight. Cyber's per-trade charge is $14.95 for 0-249, $12.95 for 250-499, and $9.95 for 500+ trades per month. There is no charge for the software as such, but the data fee is $199 month if you make 0-19 trades, $99 mo if you make 20-49 trades, and free if you make 50+ trades. A round-trip is considered two trades.

    And they update cash accounts in realtime, no T+3.
     
    #13     Sep 24, 2001
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  4. tuna

    tuna

    Has anyone got cybers offical policy as far as cash accounts go???

    Mytracks new "no daytrading in cash accounts less than 25k policy" uses Penson Financial Services as their clearing firm...who just happens to be cybertraders clearing house as well. so i suspect they'll be the same, Please tell. Cybers info on there site does'nt make mention of how cash accounts will be affected.


    heres some of Mytracks policy again.

    6. So I have at least 5 days after September 28, 2001 to day trade without worrying about the Pattern Day Trader label and all the new rules, right?

    No. According to the NASD, if a firm has a reasonable basis to believe that an account is a Day Trading Account, they must designate it as one immediately instead of waiting the 5 days. Although the rules will not take effect until September 28th, Penson Financial Services, our clearing firm, will be designating accounts that qualify for the Pattern Day Trader label ahead of time. We will e-mail you if you receive the Pattern Day Trader label in the next few weeks.



    7. What are the Minimum Equity Requirements for Day Trading Accounts?

    All accounts that are classified as day trader accounts must maintain a minimum equity of $25,000.

    21. Are Cash Accounts affected by these rules?

    Yes, Cash Accounts are affected. If you meet the definition of a Pattern Day Trader in your Cash Account, you will be subject to the $25,000 minimum equity requirement.

    Note...this is'nt just margin account..this applys to cash account..work only long...account updates realtime
    or that used to be the policy...SUCKS BIGTIME:mad:
     
    #14     Sep 24, 2001
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