Are there any Trading firms to get around the PDT USA citizens

Discussion in 'Prop Firms' started by Dewey, Aug 11, 2020.

  1. Dewey

    Dewey

    Are there any Trading firms to get around the PDT rule for traders that have 10k to 24K of ther own money just under the 25K rule for USA citizens that are not license. And not the scam ones you got pay money to learn how trade. Equities only no forex or futures.
    Get a license
    Trade to make over 25k
    get a personal loan to get over the 25K
    these are solutions, but are there any firms?
    Thanks for any feedback.
     
  2. Robert Morse

    Robert Morse Sponsor

    No US registered Broker dealer can offer a customer account and bypass the PDT rule in a margin account. A cash account is not subject to PDT rules.
     
  3. i remember firms would bypass the 25k rule by opening a subgroup from a hedge fund or something
     
  4. CMEG is one of the better offshore brokers. Of course that isn't saying much. If you make lots of trades, or small ones. commish will eat you alive. OTOH margin rules are a lot more liberal. But that can bite you in the butt too.

    I traded last year with a 50k account. I got out. This year I am trading with a 8k account and I am over $9k now. You can't make a living at it but you can trade. I should be over $10k by the end of the month. I might be over $25k by the end of the year. Made over $500 today but many days I only make a hundred or so, and many days I lose money. It's not a living but it is fun and I make a little something at it.

    Whatever you do, don't borrow money to trade with. There is about a 99% chance you will deeply regret it. Even self financed, you still statistically have about a 90% chance of failing as a new trader. Borrowing money is dangerous. Trade with money you can afford to lose. Think of it like a poker room. You don't mortgage the house and play cards with the money, right? Even pros don't do that.
     
  5. In my opinion you should actually try to open a PDT account with a decent amount above $25k such as $30k or more. If you open with just $25k then data fees and/or platform fees will take you under $25k and your Acct will be restricted. Also good to have at least $5k (Or more) buffer in general above PDT $25k threshold
     
    GrowleyMonster likes this.
  6. That's best, of course. It is pretty hard for some folks to raise that much disposable cash, though. And some peeps just don't want to put that much money into it, but have all the time in the world to trade up. Also, learning to trade live, with real money, can be a perilous process. If you start with $5k and blow your account, you are only out $5k and you can always start over after saving up the coin to re-fund. Or just stay out of trading and only be out a small sum of money. But yeah if possible, definitely just go in with $30k or so and try to contain the losses during the learning process by playing small positions with minimal risk. unfortunately I didn't do that last year, though I started out that way. I was doing really well last year with a $50k account and I got a grandiose idea for a campaign that ended up losing nearly half my account because not only was I very stubborn about bailing out, but the whole play was all about high risk on a bet that should have made me a good pile of money. Contrast that to this year when I started with $2k and yeah I have about $12k of my money in there now, but I am also up over $1k profit and doing a pretty good job of riding this powerful bull market now that I have really found my pace again. PDT hurts and it has cost me a couple thou when I wasn't able to bail out of a trade, but I am living with it. And I have $9k in another account that will be seeing some action when the most recent deposit settles, giving me twice as many day trades. I could take the same approach with two $2k accounts. Not enough profit to live on, but enough to grow the accounts if I can keep them averaging 1% per day. If the market stays bullish long enough, I will be trading with the big kids again in two or three months. If not, well we will see how well I can run with the bears.

    Sometimes the best option isn't an option. But trading over the PDT threshhold is definitely easier, that's a fact. I really miss being able to get in and out of a position multiple times in a day, and being able to sell off at the closing bell. Holding even a "sure thing" overnight definitely adds risk to the play.

    My needs are simple and I had a fair amount of cash in personal checking. Mrs Monster said she would not raise a fuss if I used money out of checking to trade with, or proceeds from selling the big boat (we had three, and I just divested us of two of them) which I do not want to sell. If I wanted to sell it I would immediately be trading with a full day trader account but this way, in my situation and in light of my preferences, is the best way FOR ME. And for some others. Not for everyone.