Hi,
I am a complete newbie here and I apologize if this has been asked or answered somewhere already. If it has, if someone could point me in the right direction that would be awesome :)
I have been swing trading up til now, holding stocks for periods of 3-5 days through several weeks in some cases. I trade using Ameritrade only right now.
It is my understanding that Ameritrade requires me to have a minimum account balance of $25,000 to be able to short stocks or to day trade? Does anyone know for sure if that is true?
And are there other platforms that you all recommend that would allow me to day trade or short stocks with a lower account balance? Or do I just have to wait until I get my account balance up to 25k?
Thanks!
Shannon
Posted May 18, 18 11:18 AMbyNeil2018
Categories
Basics
@marzsec20 So I can already day trade with my current TD Ameritrade account then? Is there a minimum balance in TD Ameritrade to be able to day trade? I am more interested in just being able to day trade vs shorting anyway. Thanks for taking the time to answer.
yes, however keep in mind that the funds you use for any particular trade will remain unsettled for a day or 2. Size your positions accordingly
I can go long and short on ETrade. I used them back in 2014 and they never had shares to short. Needless to say they have gotten alot better and I can usually find shares to short. I know the feeling, sucks to only trade one direction. Definitely a handicap when the tide turns lol.
You need more than 25k to day trade (exit in and out in a day). Otherwise, you fall into the PDT rule if you get in and out within a day, in the rolling 5 business day. Your account will be locked for 90days if you do that.
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