PDT Rule UK

[panvulcon]

Hi, I live in the UK and plan on trading on the nasdaq.

I'm thinking of joining an international trading broker here in the UK, will the PDT rule apply to me?

Thanks,

Andrew

 

[timsk]

Hi, I live in the UK and plan on trading on the nasdaq.

I'm thinking of joining an international trading broker here in the UK, will the PDT rule apply to me?

Thanks,

Andrew

Hi Andrew,
Welcome to T2W.

If you're trading actual shares via a direct access broker such as IB (as opposed to a derivative product such as Contracts for Difference or options), then yes - it will. Furthermore, you'll need to fund your account with a minimum of USD $25k. Realistically, I recommend you make this nearer $30k to give yourself a little breathing space. Drop just one cent below the $25k minimum and they'll lock your account. (No prizes for guessing how I know that!)

Having said all of that, I'm basing this on my experiences back in 2008 when I day traded US equities. Rules n' regs may have changed since then, so check with your prospective broker for all the latest info'.
Tim.

 

[panvulcon]

Hi Andrew,
Welcome to T2W.

If you're trading actual shares via a direct access broker such as IB (as opposed to a derivative product such as Contracts for Difference or options), then yes - it will. Furthermore, you'll need to fund your account with a minimum of USD $25k. Realistically, I recommend you make this nearer $30k to give yourself a little breathing space. Drop just one cent below the $25k minimum and they'll lock your account. (No prizes for guessing how I know that!)

Having said all of that, I'm basing this on my experiences back in 2008 when I day traded US equities. Rules n' regs may have changed since then, so check with your prospective broker for all the latest info'.
Tim.

Cheers Tim, i've heard of a Company called Suretrader, based in the Bahamas who apparently bypass this rule but i'm not sure i trust them with my money tbh. Have you any experience with them?

 

[timsk]

Cheers Tim, i've heard of a Company called Suretrader, based in the Bahamas who apparently bypass this rule but i'm not sure i trust them with my money tbh. Have you any experience with them?

Hi Andrew,
I've not heard of Suretrader in particular - but I have heard of brokers operating out of far flung places that get around the restriction by not being regulated by the main US authorities, e.g. the SEC. If you don't mind taking a punt with the knowledge that you could lose all your money - it might be worth it. Personally, I'd rather stump up the full $25k - or go down the CFD route. The choice is yours!
Tim.

 

[panvulcon]

Hi Andrew,
I've not heard of Suretrader in particular - but I have heard of brokers operating out of far flung places that get around the restriction by not being regulated by the main US authorities, e.g. the SEC. If you don't mind taking a punt with the knowledge that you could lose all your money - it might be worth it. Personally, I'd rather stump up the full $25k - or go down the CFD route. The choice is yours!
Tim.

The CFD route looked like a good alternative, however after spending a few hours demoing platforms from IG, IB etc, i soon realised one major flaw; they only list the nasdaq 100 not composite.

Is this true of all CFD providers?

 

[timsk]

. . . Is this true of all CFD providers?

Hi Andrew,
Pass - I've never traded CFDs.

Your best option is to draw up a short list of prospective brokers and have a list of 'essential' and 'desirable' services that you require to see which broker comes out best. If the range of available instruments is the only real issue that concerns you - just phone up each broker and ask 'em. Failing that, you could pose the question on this thread: How To Make Money Trading The Markets. - as most subscribers to it are day traders of US equities - some of whom trade CFDs (although this doesn't apply to Mr. Charts).
Tim.