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279793 No.279793 [Reply] [Original]

Fuck Free Riding Violations.

Why are the privileged $25Kers only allowed to trade non stop? Why is everyone else limited to 3 tresses per 5 business days?

Couldn't I get around free riding violations by opening two spate r brokerage accounts? Make 3 trades on ETrade, then another 3 trades on Ameritrade? By the time I've used up my 3 TD trades, my 3 ETrades will be available.

How could I get caught doing this? I highly doubt different brokerages communicate with each other regarding person after person on every trade they make.

>> No.279801

Only a guess, but could it be for the same reasons that accredited investors are allowed more leeway than non-accredited investors? The implication is that, if you have enough money, you should be more savvy and can therefore take more risks if you so choose.

>> No.279820

>>279801
I understand the concept. If people have above this magical number they set ($25,000) then they should be able to be able to afford losing it all in the Stock Market Casino, hence unlimited trading.

Everyone below the $25,000 limit line is held to only 3 trades, based on the assumption they don't know what they're doing because they lack the capital. I get these vague concepts that I don't agree with.

But my question still stands - open 2 brokerage accounts = unlimited, no Free Riding Violation trades?

It just seems too simple to be able to get around - I imagine the SEC looks into these types of things?

Even if I was caught, what would the repercussions be, seriously?

>> No.279829

>>279820
It's because the companies make more money off of the $25kers you fucking idiot.

>> No.279838

>>279820
Yes, you can use multiple brokers to get around it if you want to. That's legal.

>> No.280010

>>279838
Can anyone confirm this?

This is the first I've heard regarding a solid answer.

>> No.280147

Bump for relevant interest

Poorfag here who doesnt have 25k (11k) who really wants to daytrade. Not sure if this is legal to trade across multiple platforms without SEC violations?

>> No.280151

You do know the US isn't the only country in the world right? Open an offshore account.

>> No.280208

>>280010
No. Usually after selling your stocks, you will not be able to transfer the money from the sale until the transaction is closed.

>> No.280418

>>280208
Can you please elaborate on this?
I know I am not allowed to use funds after 3 business days after a selloff. But I don't plan to "transfer" money back into my bank account - just use the profits from my first trade to roll into the 2nd, to take those profits and roll into the 3rd, and so on.

Does the SEC check to see if you are breaking Free Riding Violations if its across multiple exchanges?

>> No.280429

>>279793

I don't know if they allow US applications, but my brokerage in Canada Questrade does not follow the pattern day trading rule. Minimum $2000 in Margin account but can trade unlimited amounts

>> No.280443

>>280418
How are you going to move the money to a different broker without transferring it?

>> No.280473

>>280443
$5k into brokerage #1
$5k into brokerage #2

That simple.

>> No.280480

>>280429

PDT rule is a SEC rule, it's not international. This is why I have my account in Belize. Anybody who opens a TD Ameritrade/Scottrade account and think they are being serious might as well donate their money to the SEC.

>> No.280483

>>280480
You sound experienced.

So if I open an account with ETrade, make 3 trades, then open account with Ameritrade and make 3 trades, will I be flagged, or will I be all good?

>> No.280488

>>280483

You are being stupid. You're cutting your capital in half just to make 3 extra trades a week.

>> No.280497

>>280488
Correct. Why is this stupid? I plan to make day trades against specific ETFs.

>> No.280520

>>280497

ETFs have low range. Unless you can afford thousands of shares, you won't make very much.

>> No.280522

>>280520
I play x3 leverage ETFs. They fluctuate anywhere from 8-15% in a single day.

>> No.280523

>>279793
Just put 25k in your account poorfag. Seriously. That's not that much money and you can't really do serious investing with amounts smaller than that anyway.

>> No.280526

>>280522

Trading isn't about %, it's about making money.

>> No.280527

Just trade futures contracts, $50 every S&P point on the /ES e-mini futures. No rules on amounts of trades. Also, come back when say hi after you inevitably blow up your account because you're a know-nothing retard.

>> No.280533

>>280527
>all dat angst on a cartoon imageboard
Just wanted to know if having 2 brokerage accounts would flag me.

>> No.280734

>>279793

It's funny you mention this... I've been getting killed with this stupid rule. I have two accounts... one is a managed account with $27k, then I set a second account to do some daytrading with and have $4k in it. I'm making good moves but I get stuck bagholding all the time because I can't close my position without the f-ing SEC shutting me down for 90 days. Sucks... The system is stacked against you.

I wonder if I could roll my account into the managed account to use that equity?

>> No.280745

>>280734
Why don't you just do 3 trades per your brokerage account? By the time you've used your 3 up on #2, #1 will be available again.

>> No.280804

>>279793

You get free trades from bank of america if you have $25 in assets, so I don't know what you're crying about.

stop being a faggot.

>> No.280806

>>280147

you're a faggot too. Have 2.5-5k in checking $15k in savings/money market, and invest $5k a year in a Roth IRA cuz clearly you're too stupid to be making more than $100k a year.

Anything you have left, save, or go througha brokerage.

You're too dumb to day trade, sorry to break it to you.

>> No.280810

>>279793

>Guys, I want to set my money on fire by daytrading, but the SEC won't let me because they think I'm retarded. How can I best get around this tyrannical big gubbmint regulations and destroy my entire net worth?