Nasdaq $25,000 account rule, dead!

Naz

Experienced member
1,391 22
One would have to argue that with many brokers offering customers the chance to trade the Nasdaq as non patterned day traders with a minimum account opening amount of just $2000.ie trading without restriction, it may only be time before this rule is finished.

I hear that some traders are starting to open these accounts here in the UK and i attach a screen print that one such trader showed me.
 

Attachments

Naz

Experienced member
1,391 22
I mentioned the subject of opening non restricted Nasdaq level 2 direct access accounts with as little as $2000 quite a while ago when they first started.Its a subject which many like to keep a little quiet,as you can imagine.

I have therefore promised this UK trader that i would not splash the brokers name all over the web,so that he and his friend can get some benefit from trading this type of account here in the UK without any song and dance being made in the public domain by anyone who thinks it bends the rules.

However if i meet and talk to anyone face to face i will only be to happy to mention just who that company are.
 

Hittfeld

Well-known member
437 12
Hi, the 25 K rule is a rule targeted to US brokers regarding US clients. Every US broker could suspend this when dealing with foreign customers. It`s just the computers, why they don`do this.

The trick do go via subaccount is a matter of personal trust: the account is than not in your name regarding us-insurance coverage.

One broker offering this ( and some possible tax-evasion through secrecy) is whs-selfinvest in lu.

But you won`t get IB`s fees.

Regards

Hittfeld
 

Naz

Experienced member
1,391 22
Every 1c i save by working my order saves me $10.If i save 2c in and 2c out by being a good level 2 direct access player i've just saved $40 on the round trip.Do this every day and it mounts up.

If i capture spreads by being a decent level 2 player pre and post market i can eek out $50-$400 extra in just one trade by capturing the spread.For this i need the flexibility of being able to work my screen and not use smart order routing.This of course is just a personal opinion.I realise it dos'nt suit everyone.

With regard to the $25k rule as i said in my above post its a delicate subject and of course their will always be a debate on the pro's and cons of this,as well as un substantiated remarks but the reality is that there are US and foreign traders opening and trading these accounts now.
 

Naz

Experienced member
1,391 22
Good work Neil,

I hope that more and more companies will do the same thing and get around this rule.It seems that the ball is rolling and hopefully in the end the majority of brokers will offer the same service.
 
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