Day Trading?

Is day trading legal in the market today? Will the brokerage firm suspend your account if they believe you are a day trader?

Public Comments

1. of course it's legal. Why wouldn't it be?

2. DEAR CHEROKEE,

LONG TERM INVESTING IS THE ONLY WAY TO MAKE MONEY IN THE MARKETS. FIND A GOOD FINANCIAL ADVISOR AND PLAN FOR THE LONG TERM

3. Quote:Is day trading legal in the market today?Unquote

-In some countries where Shariah law is observed,day trading may be illegal if ,as an investor,you are paid interest(as far as I remember, 'Ribaa').Trading/investing is not illegal,but interest is inconsistent with Islamic law(I lived in the UAE for 2 years,I am a full-time trader but not a specialist in Islamic law).

Quote:Will the brokerage firm suspend your account if they believe you are a day trader?Unquote.

-No,they won't suspend your account for that reason.They can suspend your account if the net asset value of your account reaches a margin call(i.e if your total equity reaches or falls below a certain amount, depending on the intrument[s] traded..e.g stocks,foreign currencies etc).
With every good wish.
Forex1993
Arua,Uganda

4. yes, it's legal. It's also the reason why there is so much volatility in the market. It is responsible for the dramatic swings up and down from one day to the next. It is why stocks are so overvalued. If you are lucky enough to catch the wave at precisely the right moment, you can make some money. Most day traders would do better in Las Vegas.

5. Day trading is legal. But you end up spending a lot of money on commissions. If you want to develop your day trading skills, you might want to start a "practice" portfolio at http://www.top10traders.com - it's free - each month the site ranks the best performing traders.

6. 1) Yes.
2) No.