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  1. #1
    Junior Member

    How much money do you need to start day trading? !!!

    I would like to try it but I read an article that says you need at least $25,000 in your account minimum.Is that right?Do you have any advice for me?I don't have that kind of money and refuse to borrow it.Is there something along that line that I might do instead of day trading?Thanks.

  2. #2
    Veteran Member Ammeo's Avatar
    There is a rule enforced by the SEC called the PDT "Pattern Day Trading" rule under which in order to day trade u need atleast $25,000 in ur account at all times to be able to do 4 or more trades in a 5 day period. So u will need to have atleast $25,000 in ur account to be able to day trade equities.

    There is something which i consider better than Day trading which is Swing trading and Position trading. Im a half swing, half position trader. Previously i used to be a scalper or day trader and since i have moved to long term trading i have seen better results and less hectic work.IMO Always try to be an investor rather than a retail day trader, thats my opinion but everyone has his/her own style.

  3. #3
    Administrator Martin Kay's Avatar
    This probably applies to Forex. In Binary Options you can begin trading with 200$. Can you give us a link to this article so the rest of us could learn more about this subject??

  4. #4
    Senior Member LeeChang's Avatar
    These rules apply only to stock trading with real securities. You could day trade with CFD with low margins but if you want to switch to real stock securities trading you have to fulfill a specific margin requirements which are much larger for day traders. Here is a link to this day trading restriction. Another reason to trade only binary options!

  5. #5
    Junior Member
    Typically, to day trade in the US you will need to maintain an account balance of $25, 000. You should start with at least $30,000 if you plan to make more than that 3 day trades per trading week (more than 3 day trades per week will give you day trader status and you will be subject to the $25,000 minimum account balance). You can day trade other global markets without this account minimum. You should open a typical account with at least $10,000 if you are going to do other forms of short term trading or trade global markets outside the US. With smaller accounts than this, fees can become a very large obstacle to overcome. As the time frame for your trades expands, you will be trading less frequently, and fees become less of an obstacle and accounts can be opened with smaller amounts.

  6. #6
    Senior Member LeeChang's Avatar
    You are absolutely right Rachel, but these rules are just for equities and especially US equities. If you want to day trade penny stocks, some less popular small cap stocks that is the way. You have to have 25k account with some of the US stock brokers, but now there are many other derivative products which are available to day trade. You could trade CFD on more than one thousand American stocks and more than 3 thousands international stocks, with low commissions. So it is not necessary to start with such a big account especially if you are in your first 2-3 years of trading. I know many people who successfully started with less than 10k and now have much bigger accounts.

  7. #7
    Rookie Member
    We are binary options traders and that discussion is not applicable to us at all. This is only for stock market day traders. We could trade with as small capital as we want, but we have to beer in mind how much will be our percentage risk per trade. If we keep it at 1% per trade and risk 20$, than our account must be 2000$ - still a big sum for most of the newbie traders. I am trading personally with lower than that amount in my trading account but will steadily increase it when I gain more confidence.

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