Does this piss anyone else off? I cant tell you how many times I've missed out on an opportunity to make money because of having to wait 3 ways for my funds to settle. Is there any possible way around this? I know you can open margin accounts but I think they require a minimum balance. Are there any online brokers where you do not have to worry about funds settling? I know its an SEC rule, but there has to be an alternate method instead of constantly waiting.
Not trying to be insulting here but minimum maintainence for a margin account is only about $2000. At most it's $3000.
If you have 25k or more you dont have to wait, anything less than that and you do more than 3 daytrades in a 5 day period they will flag the account.
min margin is 3000 and you don't have to wait open a margin account .. if you don't have 3000 in your account then just wait S2007S - you are talking about the pattern day trading rule which is 25k min requirement
The OP didn't mention daytrading, which would require $25K He said he doesn't like to wait for funds to settle which is not a problem in a margin account as long as he stays within the PDT rules. BTW, you can use unsettled funds to make a purchase as long as you hold the new position until the original settlement. If you sell the new position too soon you are guilty of a free ride.
This is the part that confuses me. Ive heard conflicting reports on this. 3 day trades in 5 days, 3 day trades on a rolling 10 day schedule (whatever that means). I guess ill have to speak to a scottrade representative about it. Either way though, its better than waiting for my funds to settle on every trade.