Hey Guys,

 

I have a couple of questions, I've been scouring the net for some answers and there seems to be some confusion or conflicting answers so I'm asking here. Please only respond if you know what your talking about and can back up your claims. I just don't want any flase information here.

 

I have 2 accounts:

Etrade: Marin Account

Etrade: Cash account

With the PDT rule, since these are 2 separate accounts do I get 6 day trades a week?

 

This is what I've gathered online, if I'm wrong someone please tell me...

 

Cash account has unlimited trades. There is no 3 trades per week (PDT rule) on a cash account; however, there is the T+3 rule. This means if you have an account with $5000 in it and buy $5000 worth of shares, you have to wait 3 business days for the funds to become available again. If you divide up the trades and only do $1000 trades, you can do 5 in one day, but you would have to wait 3 business days for the funds to clear and then you can trade again. From what I read online with a cash account, there is no PDT rule, but there is the T+3 rule. 

 

Margin account you can only perform 3 day trades over a 5 business day period. The T+3 doesn't apply as you're borrowing from your broker as the funds clear, so you can trade as  many times as you want as long as it doesn't violate 3 day trades per 5 business days.

Is this correct? I can't seem to find the answers if you have 2 accounts at the same broker. I know this would apply with 2 accounts at different brokers, but what about the same broker. I appreciate the feedback. If I don't hear anything I will call Etrade on Monday. 

 

Kelly