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

[r1ch]

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.

 

[timsk]

. . . 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.

 

[r1ch]

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.

 

[timsk]

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.

 

[r1ch]

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!)

 

[timsk]

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!

. . .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.

 

[Charlton]

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.

 

[donaldduke]

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.

 

[T44]

All good advice so far.....

I'd go with IB, don't think you'll find cheaper for US Stocks, and you do get the added benefit of other products incl their own FX offering which you can use to trade and not just for your currency conversions. Their are pros and cons whatever you decide to use as your base currency, if you keep it in GBP then IB in effect lend you the USD to trade. If you incur losses you have to square these off via a currency trade or you will be charged for the loan, though that fee is a v small %.

Good luck!

 

[r1ch]

Really appreciate all the advice. I have started to get used to IB, it seems it 'bugged' yesterday in regards to not being able to close orders etc. It's a shame all the data is behind so much on the demo version unlike Plus500 as i've found I do better at quick trades in the first 5-15 minutes of the day but the data is delayed by 15 mins at least in IB demo but I am starting to know where everthing is on the interface, it will just be a bit of time to get quick at it due to the less user friendly interface.

I will give them a call before I sign up properley as a little unsure of the account differences, I definitely want to be able to short so can't use the Cash account but have no desire to use leverage so hopefully speaking to them over the phone will help me get the right account for me.

I didn't realise how difficult it was trying to find the 'right' broker, I had been spending most of my time learning candles and patterns and candle patterns!

Much appreciated again guys.

 

[r1ch]

Thought i'd just post a quick little question rather than starting a new thread. I've searched but with no luck. Currently getting to grips with TWS and getting there, however there is a big issue i'm not understanding. I setup BookTrader with Buttons Buy 100, Sell 100 up to 1000. Still doing paper trading and the charts in TWS don't update automatically when no active funded account so you have to manually refresh.

It's a bit of a challenge but i'm getting there. The issue I have is, I currently own 500 shares in a company. I went long and the price went up, however, the TWS Portfolio shows my current P/L for this deal as 97 but BookTrader's portfolio screen is showing 20... which is a pretty big discrepancy, commision is currently at around 11 so no idea why the amounts are so different?

I ended up selling the shares, TWS portfolio +67, BookTrader portfolio -10.25. It was 500 shares at 2833.3, sold at 2850 so no idea.

Any ideas?

Thanks.