From UK looking to day trade US stocks BUT with $25,000 starting balance

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Old Feb 16, 2017, 1:16am   #1
 
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From UK looking to day trade US stocks BUT with $25,000 starting balance

Hey guys,
Very new to these forums but found them helpful when looking for certain info as I am looking forward to diving into the world of day trading.

A quick question that I have searched for but don't seem to be finding great results on is what is the best or one of the better brokers for a UK resident to use to trade US stocks when you have the initial $25,000 account minimum?

I have no desire to risk all $25,000 and will continue using a demo account for a while longer and once into the real thing will start with small amounts until consistently profitable but I would like to know which would be the best broker to go for once 'I am out of the gate' so to speak. There are several areas I have 'sort of' found the info I was looking for but have not really found a final answer specifically for a UK trader wanting to day trade US stocks but with the the required $25,000 starting balance? Most answers seem to lean more to those without the required minimum and much higher commissions.

Are Interactive Brokers still one of the better ones?

Any help appreciated

Thank you.
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Old Feb 16, 2017, 9:54am   #2
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. . . Are Interactive Brokers still one of the better ones?
Hi r1ch,
Welcome to T2W.

I used IB back in the late noughties when I day traded U.S. equities. They were very good then and, as far as I'm aware, they're the ones to beat today. Worth looking around to see if there are any better deals and, if really first class customer service is important to you, you may well find other brokers are better on that front. IB's customer service dept' used to be based (it may not be any more) in Switzerland - and getting through to them was a bit of a palaver.

If you get no other replies, it might be worth your while sending a PM to Mr. Charts asking for his impressions of IB as he's been with them for many years.
Tim.
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Old Feb 16, 2017, 10:10am   #3
 
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r1ch started this thread Thanks for the reply. Much appreciated

I've been demoing using Plus500 but have read enough bad reports about them to know I don't want to stick with them once I do eventually go live so want to try and get onto the final platform I will be using and get used to whichever brokers new setup is.
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Old Feb 16, 2017, 10:51am   #4
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Originally Posted by r1ch View Post
Thanks for the reply. Much appreciated

I've been demoing using Plus500 but have read enough bad reports about them to know I don't want to stick with them once I do eventually go live so want to try and get onto the final platform I will be using and get used to whichever brokers new setup is.
Hi r1ch,
I may be wrong, but I'm under the impression that Plus500 are purely a CFD and spread betting 'broker'. There's loads of threads about them on here and, as you say, not many of them have anything very complimentary to say about them. Given that you have the $25k minimum to meet the requirements of the Pattern Day Trader ruling then, in your shoes, I would definitely go down the direct market access route and trade actual shares - as opposed to some sort of derivative.

The really cool thing about IB is that they're one of the few brokers to offer a universal account which will enable you to trade other markets if you want to add another string to your bow. You will, presumably, have your account denominated in U.S. dollars which, needless to say, will require some consideration assuming you want to convert the huge profits you're going to make back into GBP. If you do decide to go with IB, it's worth ticking the relevant boxes saying you're an experienced forex trader - so you can make USD:GBP conversions as and when you want. If you don't and you transfer dollars into your U.K. bank account - you'll end up paying the bank rate which will cost you a fortune each time.

Hope that makes sense!
Tim.
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Old Feb 16, 2017, 4:06pm   #5
 
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r1ch started this thread It would appear you're correct re Plus500 and CFD's!

I downloaded IB's 'trial' software but it seems to be fairly impossible to do anything due to the no market data, it won't even let me close positions! It's a shame there isn't a more usable demo of this software available as the simplicity of Plus500 is something I like but could do with the addition of a few things.

Would I be correct that any UK shares I buy I would have to pay 3% stamp duty on but using say IB and with the money converted to USD I won't have this issue?

Thank you for the tick box tip!

Again much appreciated, thank you. (Go up Tesla!)
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Old Feb 16, 2017, 4:47pm   #6
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Hi r1ch,
I can't comment on IB's demo account as I've not used them for years: I suggest you speak to them direct. I'm sure they'll be very helpful, especially when they learn you're a prospective customer with $25k to open an account!

Quote:
Originally Posted by r1ch View Post
. . .Would I be correct that any UK shares I buy I would have to pay 3% stamp duty on but using say IB and with the money converted to USD I won't have this issue?. . .
I no longer trade equities, so I'm not in a position to advise on this either. (Sorry, not doing very well here am I!) That said, I imagine you'll have to pay stamp duty at some point if you trade U.K. shares - no matter which broker you're with. Getting around the tax by having an account with a U.S. broker sounds far too simple to me. If it were that easy - everyone would do it. That said, I don't actually know so, again, check with IB and/or your local HMRC office.
Tim.
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Old Feb 16, 2017, 6:40pm   #7
 
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Quote:
Originally Posted by r1ch View Post
Hey guys,
Very new to these forums but found them helpful when looking for certain info as I am looking forward to diving into the world of day trading.

A quick question that I have searched for but don't seem to be finding great results on is what is the best or one of the better brokers for a UK resident to use to trade US stocks when you have the initial $25,000 account minimum?

I have no desire to risk all $25,000 and will continue using a demo account for a while longer and once into the real thing will start with small amounts until consistently profitable but I would like to know which would be the best broker to go for once 'I am out of the gate' so to speak. There are several areas I have 'sort of' found the info I was looking for but have not really found a final answer specifically for a UK trader wanting to day trade US stocks but with the the required $25,000 starting balance? Most answers seem to lean more to those without the required minimum and much higher commissions.

Are Interactive Brokers still one of the better ones?

Any help appreciated

Thank you.
If you are looking at ONLY trading US equities, also look at Tradestation. The platform is very powerful BUT you should be comfortable with programming concepts to make the best use of them. Also be aware that with TS there is a minimum amount of trades which have to be made each month in order to use the platform free.
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Old Feb 16, 2017, 7:31pm   #8
 
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Safer to deposit 30K if you plan to day trade.

Due to any losses taking you below 25K.

Actually even if you dont lose money, FX movements could take you below 25K, if your account has a GBP base currency.
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