Waiting for funds to settle on Scottrade

Discussion in 'Trading' started by IzzyfoShizzy, Feb 28, 2008.

  1. 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.
  2. trade futures.
  3. ess1096


    Not trying to be insulting here but minimum maintainence for a margin account is only about $2000. At most it's $3000.
  4. S2007S


    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.
  5. 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
  6. ess1096


    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.
  7. 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.