PDT rule for UK traders

ukstockbroke

Junior member
ive just been told by ibkr, that i can only do 3 trades per week with my 100% cash account of 2k.

I can go up to £5k but will anywhere let me trade multiple times a day? Im confused why PDT applies to cash isa accounts.

they said i need 25k to do multiple trades per day. that seems harsh - is this the true barrier to entry? Is every UK day trader using at least 25k?

Is there a work around?
 

Trader333

Moderator
The $25K account size has been in place since 2001 and is known at the "Pattern Day Trading" rule. If you have less than that in your account then you cannot day trade US stocks more than 3 times a week. It was less of an issue for UK traders before brexit when the exchange rate was much better for GBP/USD than it now is. If you are wanting to use a DMA broker there is not much choice to get around this that I know of.
 

ukstockbroke

Junior member
The $25K account size has been in place since 2001 and is known at the "Pattern Day Trading" rule. If you have less than that in your account then you cannot day trade US stocks more than 3 times a week. It was less of an issue for UK traders before brexit when the exchange rate was much better for GBP/USD than it now is. If you are wanting to use a DMA broker there is not much choice to get around this that I know of.

No. this was a UK stock on LSE. im aware of PDT but i dont understand why this applies to uk stocks , while using cash only?
 

ukstockbroke

Junior member
It is probably best to ask IB directly why that is the case.
Yeah i spoke to them on the phone and the woman just insisted, but im not 100% she knows what shes talking about bc it just doesnt add up logically.

hopefully someone from the UK will see this thread!
 

Sharky

Staff
I think you're out of luck. There's no way out of PDT rule for IBUK accounts as they are introduced to and carried by IBLLC, a U.S. broker. If you were based in in Europe but outside the UK you could ask to get your cash account moved to IBIE, their Irish entity and the PDT rule will no longer apply.

NB, updated thread title to make it easier to find this information.
 

ukstockbroke

Junior member
I think you're out of luck. There's no way out of PDT rule for IBUK accounts as they are introduced to and carried by IBLLC, a U.S. broker. If you were based in in Europe but outside the UK you could ask to get your cash account moved to IBIE, their Irish entity and the PDT rule will no longer apply.

NB, updated thread title to make it easier to find this information.
Thanks, Do you know if I can trade just UK stocks on LSE using margin with another broker? Since its LSE this has nothing to do with finra's pdt rule.
 

Sharky

Staff
Thanks, Do you know if I can trade just UK stocks on LSE using margin with another broker? Since its LSE this has nothing to do with finra's pdt rule.
I've never come across trading on margin on an ISA account. I found this old thread on reddit which reached the same conclusion: https://www.reddit.com/r/UKPersonalFinance/comments/76xo98 The only thing you might be able to do is use a leveraged ETF within an ISA, depending on the broker.
 
 
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