Stock Trading and Other Things

Day trading - without 25k? oh god..?

I began trading using SogoTrade last week and I do not have 25,000$ of funds in my account. Until today, I did not know about the rule stating a person can not make more than 5 trades of one symbol in a day. Am I at risk of having my account closed? What should I do?
I do not have a margin account. Does this still effect cash accounts?

Public Comments

1. They'll probably try to get you to open a margin acct. I'm not sure on their rules for the trading though. I know scottrade's junk rules. Jmo. If your acct gets closed just gop out and open up another with another online broker.

2. Usually they will just block further daytrades until you deposit more funds. Worst case is that they will liquidate your account (sell everything), but will probably leave it open.

I would just call them or send them an e-mail and explain that you didn't know the rules. Then stop daytrading. I think they will give you a break. There is no cash penalty.

BTW the rules are 5 trades in 1 WEEK, not 1 DAY.