If my account balance is less than 25,000. Can I join day stock trading?

Question

If my account balance is less than 25,000. Can I join day stock trading?

Answer 1

25,000 is an excellent amt to begin with, i started with zecco.....still use it, still very happy. only ones with no fee for stock trades, and no minumums. all the others will charge you fees for trading, but compare and see for yourself!

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

Answer 2

Yes you day trade BUT you can not buy/sell the same security four or more times in five business days.

And it is a Fed rule that when you buy a security it must be paid in full prior to its sale, if you sell with out making payment in full your account is restricted for 90 days or until payment is received and you can not use the proceeds of the sale to cover the purchase amount due.

The $25,000 item that every one talks about is that if you day trade the same stock 4 times in 5 five days you will be considered a pattern trader AND you must

1-open a margin account

2-maintain equity of $25,000 at all times, The 25,000 is NOT a balance but equity and you must have that much in your account at all times.

Answer 3

Sure you can. According to the NASD rules though you can only make 3 trades or less in a consecutive 5-day period. So as long as you make only 3 trades in a week you won't be considered a pattern day trader and you won't be breaking the nasd rule. Once you get at least $25,000 in your account then you can trade as many times as you want to.