For day trading, whats the minimum you need to open an account? Will 10000 do?

Question

For day trading, whats the minimum you need to open an account? Will 10000 do?

Answer 1

For occasional day trading there is no requirement.

If you make 4 or more day trades in any 5 consecutive business days, you will be labeled a pattern day trader.  You must then have a margin account and maintain a minimum balance of $25,000.  (cash + equity)

More than $25k is highly recommended.   Otherwise if a stock drops in price you may drop below the requirement.  And you will get a margin call.

A day trade means open and close a position the same day.  (buy/sell or short/cover)

Answer 2

um...yes it will defintely do, i started with zecco.....still use it, still very happy. only ones with no fee for stock trades, and no minumums.  it took me some time to see that most of my gains were lost to the fees i paid to actually buy stock and sell it....all the others will charge you fees for trading, but compare and see for yourself!

http://friends.zecco.com/r/a7a2877caab81...

Answer 3

You could day trade with $1 if you really want to, but oftentimes the company your trading through has minimum investment amounts.  If you have a Financial Advisor you should consult them, if you don't you are welcome to email me at [e-mail] and I could answer any other questions you might have.  Day trading can be lucrative, as with any other investment, but it is very risky and requires a lot of time and research.  Before you do anything you should figure out exactly what you plan on using the $10K for in the future and invest accordingly.

Answer 4

I think they ask for $25,000 minimum.

But you can buy and sell a lot without being a day trader. I think I saw where it takes like 3 or 4 trades a day to trigger the rules making you a day trader.

Answer 5

"Pattern Day Traders" must keep $25,000 in their account, otherwise they can only trade on a cash-basis --> once you close a trade, you must wait for that trade to clear (T+1 for options, T+2 for equities) before you can use those funds.

To be deemed a pattern day trader, you must buy and sell a security in the same day, and do that four out of five days in a week.