SureTrader is the Best Broker for Accounts under 25K No Pattern Day Trading Rule
Published: Thu, 02/21/19
SureTrader is the Best Broker for Accounts under 25K
SureTrader is a Bahamas-based broker/dealer regulated by the Securities Commission of the Bahamas. This is great for traders that are under the $25,000 Pattern Day Trader level because they can trade as much as they want.
The FINRA (NASD) rule that applies to any customer who buys and sells a particular security in the same trading day (day trades), and does this four or more times in any five consecutive business day period; the rule applies to margin, but not to cash accounts. A pattern day trader is subject to special rules. The main rule is that in order to engage in pattern day trading you must maintain an equity balance of at least $25,000 in a margin account.
A pattern day trader is defined in Exchange Rule 431 (Margin Requirement) as any customer who executes 4 or more round-trip day trades within any 5 successive business days.
If you have over $25k, you have a lot of options to choose from. But now the game has changed for those with less. I feel this is the biggest benefit of SureTrader.
1. SureTrader’s best feature is that their clients are not subject to the Pattern Day Trader Rule. This is an SEC rule that disallows people with under $25,000 from executing more than 3 day trades in any 5-day rolling period (we went over why this rule is the biggest obstacle for traders under 25K)
2. Options commission is $4.95 +$0.50 per contract - $500 for cash account, $500 for margin account. No ECN (routing) fees with new commission rates
|
Volume per month |
Per Share Rate |
Per Trade Minimum and Maximum |
|
0-250,000 |
$0.01 with $4.95 per trade |
$50 per trade maximum |
|
250,001-500,000 |
$0.008 with $3.95 per trade |
$50 per trade maximum |
|
500,001-750,000 |
$0.006 with $2.95 per trade |
$50 per trade maximum |
|
750,001-1,000,000 |
$0.004 with $1.95 per trade |
$50 per trade maximum |
For volumes over $1,000,000 and up: Contact ActiveTrader@SureTrader.com
3. SureTrader offers 6-1 margin. That’s pretty great. Meaning you open an account with $5,000 you buying power is $30,000 intra-day. With $500.00 it's $3,000. With margin, there is great risk in trading above your means and you must be aware of these at all times. I am not recommending you to trade using the margin.
4. SureTrader offers the following tradeable securities:
- Equities (including pink sheets)
- Options
- ETFs
DISCLAIMER: Swiss America Securities, Ltd (SureTrader)’s brokerage services are not intended for U.S. citizens, U.S. residents or U.S. corporations. This means they are not allowed to solicit business from the U.S. However, they can accept and open U.S. accounts with no problem. Remember – even though they are offshore, you have to report the gains and losses on your tax return.