Stock Trading and Other Things

Anyway to bypass day trading limit under $25,000 with TDAmeritrade?

Okay, I've read up on the limitations:


The NASD provides that a pattern day trader is any account that executes four or more round-trip day trades within any rolling five-business-day period, provided the number of day trades represents at least 6% of the total trading activity during the same five-business-day period. Day trading is the practice of purchasing and selling, or short selling and purchasing to cover, the same security in the same trading day within a margin account.

If activity in your account is classified as "pattern day trading," you may be subject to the following restrictions:

Minimum Equity Requirement – A pattern day trader's account must maintain a minimum equity of $25,000 at the start of any day in which day trading occurs. Pattern day-trader accounts that fall below the $25,000 minimum equity requirement will not be allowed to day trade. If a day trade is executed when the equity is below $25,000, the account will be restricted to closing transactions only for 90 days, or until the equity is brought up to $25,000.


I have under 25,000, but would like to continue day trading. I just want advice on how I could bypass this rule.

Public Comments

1. You're not going to like my response but it's based on over 40 years in the business, most of which was in firm management.

There's no way you can by-pass this rule or any other rule. The rule is not Ameritrade's rule, but it is a rule that all rdecent broker/dealers must follow.

One reason the rule was put into place was to protect pattern traders from themselves. If traders do not have sufficient capital, they should not do such trading. If you do not have sufficient capital why should you be given exemptions from the a rule that every other pattern trader must follow.

Over the years in this industry, I have seen many people hurt because they don't want to follow the rules, but those that get hurt the most are those that financially can not follow the rules. I found that those that do not have the financial requirements not only get hurt but are the most vocal to complain.

If you're going to play in the game. you have to play by the rules

2. Open a futures account and Day Trade the Index Futures all you want. Same with Forex.