Does anyone know if there are brokerage companies that will let me day trade or at lease trade from day to day without a margin account? I want to buy a stock and then be able to sell it the next day. Scottrade does not let me do this without a margin account.
No. You are confused. Scottrade will let you trade from day to day with a cash account but only if you have 100% of the purchase price on hand.
Also, it takes 3 days for a trade to settle with a cash account. Dude, just fill out the paper work and have them turn on margin on your account. You don’t have to use the margin. It’s just so that Scottrade doesn’t get busted by the SEC for allowing you to trade without letting your previous order settle (3 days). Day trading with a cash account is illegal.
One more thing, this is not a Scottrade issue or really any brokerage company issue. This is an SEC law that brokerage companies are forced to comply with. In otherwords, you can’t “shop” for a brokerage company that will allow you to do this. All of them have the same rules and those rules are enforced by the SEC.
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If you are attempting to trade in a cash account, then there are Federal regulations that restict the timing of those trades. These are not Scottrade’s rules. Any SIPC broker must comply with them.
If you truly want to daytrade, then yes, you need to open a margin.
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