Day Trading under $25,000

bigtimetrader

Junior member
47 2
I had posted the message below over on elite and I figured some of you may be interested as well.

-------------------------------------
A trader friend of mine has been looking for a way around the NASD day trading rule, which states that you must have an account over $25,000 in order to day trade everyday (I don't worry about it myself because I have much more than that). Anyway, he found this firm that is not located in the US, so they are not governed by the NASD and therefore do not have to follow this rule.
Here is their website: http://www.alldaytraders.com

He has been using them for several months and says he looked into it before he started. Including speaking to a friend of ours thats a securities attorney. You still get a direct access trading platform with Level 2 quotes and charts. The firm's bank is in the US and the clearing firm is in the US, so the funds supposedly never really leave the US. He says he has deposited and removed funds several times with no problems. He also day trades everyday even though his account is only worth around $12,000.

Obviously this is not for everyone, some people may not feel comfortable trading with a foreign brokerage which is understandable and a matter for you to decide on your own. It is something I found interesting when he told me about it and I figured alot of you without the $25k may be interested as well, so I figured I'd share the info. If this is valid, it seems like such a simple answer to this issue that I can't believe it had not been thought of earlier (Don't like US rules = Don't trade with a US firm).

If you have any questions, post them and I'll try to ask him or even better you could go to the site and ask for yourself. After all I'm not your secretary.(Just kidding, I'll ask him if you want).
 

Naz

Experienced member
1,391 24
Interesting,i dont know how they've got around the rule even if they are outside the US, but thanks for posting it.
 

TheBramble

Legendary member
8,394 1,170
"Licensed by the Securities Commission of Jamaica to carry on the business of Securities Dealers and Investment Advisors."

Alliance Investment Management (aka All Day Traders) are listed, but it would be good to get a few more recommendations.

Thanks BTT.
 

bigtimetrader

Junior member
47 2
Naz said:
Interesting,i dont know how they've got around the rule even if they are outside the US, but thanks for posting it.

The NASD and SEC are US institutions they have no jurisdiction over foreign firms. Their rules are only enforceable within the US.

My buddy has been day trading everyday for 2 months already. It's about time someone found a way around this $25k rule, which I believe is total BS anyway.
 

schoe

Well-known member
343 3
This sounds interesting but how do you know your funds are safe if the company go's broke?
 

Naz

Experienced member
1,391 24
bigtimetrader said:
The NASD and SEC are US institutions they have no jurisdiction over foreign firms. Their rules are only enforceable within the US.

I feel like most about the $25k rule.Although CFD trading the US markets from the UK gets around this rule.If what is said above is true then why cant UK brokers offer the same direct access service as the company mentioned above?.I'm having a meeting soon with the CEO of one such major UK company to discuss the US markets and i shall put the question to him.
 
Last edited:
  • Like
Reactions: Mr. Charts

Naz

Experienced member
1,391 24
The above is interesting and i'm going to check it out.I'm not bothered if someones trying to flog something or not.I like to think for myself.
 
Last edited:

bigtimetrader

Junior member
47 2
LevII said:
Something suspicious here.

Look at this person's post at:-

http://www.trade2win.co.uk/boards/showthread.php?p=95711#post95711

Follow the link on that post ( www.realfasttrader.com )

Anything look familiar?

This isn't someone trying to flog us something is it?

Careful!

Just a note, we were both using the broker realfasttrader and they were the ones who set the deal up with the foreign BD to use their software. They also told my friend about the foreign broker, so it does not particularly surprise me that sites look similar. It's certainly the same software and probably the same webmaster as well.
 

LevII

Established member
579 16
we were both using the broker realfasttrader

In which case your friend, presumably, had sufficient resources to pattern day trade with realfasttrader

No need for him to move elsewhere to use the same facilities at the same commission but without the US controls, insurance and general security was there? ;)

LII
 

bigtimetrader

Junior member
47 2
LevII said:
In which case your friend, presumably, had sufficient resources to pattern day trade with realfasttrader

No need for him to move elsewhere to use the same facilities at the same commission but without the US controls, insurance and general security was there? ;)

LII

Presumed incorrectly, that's the whole point... he did not have sufficent funds. If you had read my earlier post, I said he only had like $12,000. He was swing trading at realfast, because he could not day trade under the US rule.:rolleyes:

They told him about their deal with the foreign broker.
 

bigtimetrader

Junior member
47 2
My friend and I were discussing this topic earlier today:
Do you guys believe that you can be a successful day trader with a less than $25k account? :?:
 

Salty Gibbon

Experienced member
1,535 6
Somewhere on the IB site it says that you are unlikely to be successful with less than US$ 50,000.

I have never quite understood the logic behind that statement.

Of course you can be successful with less than US$ 25,000.

It all depends on you - not the size of your opening capital.
 
 
AdBlock Detected

We get it, advertisements are annoying!

But it's thanks to our sponsors that access to Trade2Win remains free for all. By viewing our ads you help us pay our bills, so please support the site and disable your AdBlocker.

I've Disabled AdBlock