Looking for daytrade stock broker

[Apersoons]

Hello everyone,

I know this topic has been discussed over and over here, I learnt a lot from reading the existing topics on this subject, but I haven't been able to successfully filter out all the information for my specific situation.

This is my situation:

I've been working on my strategy, and fine tuning it for about a year.
In this time, I have traded on virtual stock exchanges, and participated in several virtual games, most which I've won.
I only day trade in US stocks, although I sometimes keep positions for a few days, if I have to. Almost all of my transactions are in short selling.


On average, I make 10-15 transactions a day, and I want to start trading with about 7000EUR of my own money. For now, my average daily returns are about 4%, my target is to achieve an average daily gain around the 2% mark, If I start trading on a half-time basis.

Considering all this, what would be a good broker for a non-US citizen nor resident alien, to day trade on the US stock markets.

I've been looking at OptionsXpress, but I find their transactions costs a little high for my purpose. Interactive Brokers seem to offer good rates, but I'd like to hear a little more from people who have real world experience with these or other brokers, before I take the plunge.


Any help would be greatly appreciated,
Kind regards,
Axel

 

[timsk]

On average, I make 10-15 transactions a day, and I want to start trading with about 7000EUR of my own money.

Hi Axel,
Welcome to T2W.

To day trade U.S. equities with a direct market access broker like IB you'll need a minimum of U.S. $25,000. That's a legal requirement: SEC Ruling. So, you'll either have to increase your opening balance considerably, or bypass the ruling by trading derivatives. Options is one possibility, but I'd look at CFDs if I were in your shoes. Lots of CFD providers listed here: Broker Reviews
Tim.

 

[Apersoons]

Thanks for the quick answer, Tim.

I wasn't aware of that limitation, it's very helpful finding these things out in time.

Considering the time I put into developing my strategy, I'm not sure I'd want to change it because of the minimum set by the SEC.

I think I would also be prepared to put down $25k if this is required.
Bout could there be another way around this, by using a UK broker that deals on US markets, for example?

In either case, my question remains the same: what would be a good broker for daytrading US stock as a EU citizen,


Kind regards,
Axel

 

[timsk]

In which case, my question remains the same: what would be a good broker for daytrading US stock as a EU citizen.

Hi Axel,
This is a question that's often asked, but it's a tricky one to answer because brokers come and go and those that have been around a long time are forever making changes to their product / service in a bid to remain competitive. Also, your requirements will be different to mine (or whoever), so a broker that suits me might not be good for you. Besides which, all that any member can do is to say 'I'm with XYZ and I love/hate them'. Either way, that's not a lot of help to you!

So, what to do? I suggest you check out the direct access brokers listed in the link in my last post. Also, take a look at this FAQ: Can You Recommend a Data Feed, Charting Software & Broker? and follow the recommendations there.

Let us know how you get on. Oh, and please let me know if there's anything I can do to make the FAQ more useful for future members in your situation.

Tim.