Day trading margin - Fidelity

That feel when Etrade changes your margin requirements mid trade and then sells 60% of your portfolio at the low of the day without notice and you’re just sitting there like wow dude I wouldn’t have held for this week if I knew they would sell for a loss at that point. I already bought the shares..?

That feel when Etrade changes your margin requirements mid trade and then sells 60% of your portfolio at the low of the day without notice and you’re just sitting there like wow dude I wouldn’t have held for this week if I knew they would sell for a loss at that point. I already bought the shares..? submitted by Nonaluuluu to wallstreetbets [link] [comments]

Why does the SEC hate the 99%?

This is a bit of a vent but I find it kind of hard to understand. I like many others used this pandemic as a chance to open an eTrade account and get into stock trading. Several weeks ago I made the mistake of upgrading to a margin account because I thought it will let me short stock, but found out I can't do any short selling until the balance exceeds $2,000. Since I don't want to take a lot of risk, while I am approaching that figure I don't have that much in my account right now despite the 40% gains as I didn't invest that much.

Here's what I don't understand.

The SEC is about keeping people "honest", not insider trading, and keeping the markets legal, from what I understand. So why does the pattern day trader rule only apply to those with less than $25,000 in their portfolios? I mean this is obviously targeted at poor people.
submitted by f00dl3 to stocks [link] [comments]

How to Grow A Small Trading Account📈

Wrote a lil blog with some tips to help grow a small trading account! Here it is:
Almost every trader that is brand new to the market starts off by trading a small account, as they should. After all, why dive into the high-risk world of day trading with all of your hard-earned life savings at risk? It's best to start small and slowly grow your account, or even add more to your account in the future when you're more confident in your trading. However, most people dream of starting a small account of a few hundred or a few thousand dollars and growing it one trade at a time, which is obviously easier said than done. In this post I'll be sharing some tips and tricks that can help you grow a small trading account. Most of these I even used myself when I first got trading and I believe they played a big role in helping me grow my account.
Before getting to the good stuff, you may be wondering why it's actually more difficult to trade a small account than a large account. The main reason for this is because of the Pattern Day Trader (PDT)Rule. The PDT rule limits U.S. based traders with less than $25,000 in their trading account to only 3 day trades per 5 business days. Further limitations are placed on accounts that break the PDT rule by placing 4 or more day trades within a 5 business day period.
The PDT rule was put into place by the SEC with the hopes that it would protect new traders from trading too frequently and quickly losing their money. In reality, a lot of time what it actually does is forces traders to hold risky positions overnight that they would rather exit the same day, due to them not having anymore day trades available.
There are a few ways that new traders can, in a way, get around the PDT rule to be able to place more day trades. First, they can look into opening an offshore trading account. Now, I know it sounds a bit sketchy... but opening an account with a reputable brokerage based outside of the U.S. is a legitimate way to get around the PDT rule. The reason this works is because the PDT rule is for U.S. traders and if your money is in an account outside of the U.S, you're free to trade as much as you'd like!
Another way to increase your number of day trades, without opening an offshore account, is to have multiple brokerage accounts. For example, if you have $2,000 to start trading, you could open 2 separate brokerage accounts with $1,000 in each and will then have 6 total day trades per 5 business days (3 with each account). If you're starting with a larger amount of money, but still under the $25,000 PDT minimum, you can even open more than 2 trading account if you'd like and will have 3 day trades in each one!
One issue you may run into using this method is that you can only have one margin account per brokerage. Margin accounts are required if you're someone that short sells or plans on doing some short-selling. Because of this, you should have separate accounts with entirely different brokerages. For example, one account with Etrade and one with TD Ameritrade.
Aside from the broker that you're using to do your trading, there are of course actual trading techniques and strategies that you can do with you small account that will give you better chances of growing over the $25,000 PDT minimum too. One of those strategies is to simply learn swing trading. You'll still be able to use your 3 day trades per 5 business days, but if you really want to put your money to work while your account is under the PDT rule, being able to profitably swing trade is an incredible way to grow your small trading account.
A swing trade is just a position held anywhere from a few days to a few weeks. This is different from day trading, which is when you exit your position the same day that it was opened. The nice thing about swing trading is that there are no limitations on how many swing trades you can place, even with a small account. One great way to swing trade is to follow stocks that already have momentum. By doing this, you're following the stock's trend rather than trying to fight it! "Follow the trend. The trend is your friend." - Jesse Livermore
You can use a screener like the one here on finviz.com to find stocks that already have some upward momentum. To do this you may include "Performance +10%" over the past week while screening. This will give you a list of that have gone up at least 10% in the past week. Of course, you'll want to narrow it down further but this is a good way to at least start searching for some stock with some upward momentum that you may be able to get in on.
The next tip for growing a small trading account is one that should be used regardless of the trading type that you're doing, whether it's day trading or swing trading. Risk proportionally to your account size. This means that, for example, if you would be risking $250 to $500 with a $25,000 account... you should only be risking $25 to $50 with a $2,500 account. It's important to know your max risk before entering a trade and using the proper position size based on your risk.
Doing this will help you prevent any major losses and save you from blowing your entire trading account with just one bad trade!
Hopefully instead of having to worry about blowing your trading account, you'll have to worry about my next tip. Don't remove your profits from your trading account. When you first start making some money it can be very tempting to move those profits straight into you bank account, but you'll never grow your trading account this way. In my opinion, you should maybe give yourself some milestone payments along the way, but keep a majority of your profits in your account until it's grown to your goal account size. By "milestone payments," I mean maybe withdraw some profits once you grow your account to $10,000 or $15,000, rather than randomly after you've made any profits at all.
Hope you found this helpful!
submitted by mtmtrader to pennystocks [link] [comments]

Need help understanding some trading terms

I use eTrade and have always been a long share holder. I have made close to 50% gains in some large cap stocks but recently started playing around with penny stocks. I only invest what I can afford to lose, and so far, I am ahead of the losses. However, there have been a lot of learning experiences on the way. I never realized how much I need to learn about trading until this.
First mistake was using e-Trade. Period.
Second mistake was daytrading 4 stocks within 5 days and then getting flagged as a day trader and now have a PDT placed on my account for 90 days. I’m ashamed to say I didn’t even know there was a limit. ETrade has NOTHING that warns you about this and you have to keep track of day trades yourself. Sounds easier than it is.
Here are some questions I have now that the restrictions were placed on my account.
  1. As of now, I am able to buy and sell stocks, even on margin. I just can’t day trade. I am well ahead on gains, so does this mean my securities are safe and won’t be liquidated suddenly? The minimum equity margin call scares me, although it just says not to day trade or I can put more money in my account if I want to continue daytrading. As long as I don’t have huge losses in the future, are my stock positions safe?
  2. I noticed there is a number under “margin excess”. From what I understand, you want to see at least $2000 here. Mine is $3,480. Is this a good thing?
  3. Besides each of my positions, I see a column labeled “Margin Requirement” and one labeled “Concentration” with varying percentages for each stock I hold. I’m assuming the requirement is the percentage that goes towards the margin debt if I sell. Is that accurate? What is concentration?
I REALLY appreciate your help with this! I tried googling but can’t find simplified, direct answers.
submitted by ADHDoll to pennystocks [link] [comments]

Limits on buying stocks/ETFs on etrade?

Would someone familiar with etrade rules please check if I'm understanding the rules correctly?
I read this on the website:
"Per FINRA, the term pattern day trader (PDT) refers to any customer who executes four or more day trades within a rolling five business-day period in a margin account."
As I understand it, this PDT restriction is around day trades, but not all trades — does that sound right? I've been buying ETFs, at times more than once a day, but I haven't done any sales — am I at risk of hitting some limit on number of times I can buy in a day?
I'm searching the etrade docs, but still haven't found the answer to the question. Thanks for any info!
submitted by wasnt_in_the_hot_tub to etrade [link] [comments]

How to Grow a Small Trading Account📈

Wrote a lil blog with some tips to help grow a small trading account! Here it is:
Almost every trader that is brand new to the market starts off by trading a small account, as they should. After all, why dive into the high-risk world of day trading with all of your hard-earned life savings at risk? It's best to start small and slowly grow your account, or even add more to your account in the future when you're more confident in your trading. However, most people dream of starting a small account of a few hundred or a few thousand dollars and growing it one trade at a time, which is obviously easier said than done. In this post I'll be sharing some tips and tricks that can help you grow a small trading account. Most of these I even used myself when I first got trading and I believe they played a big role in helping me grow my account.
Before getting to the good stuff, you may be wondering why it's actually more difficult to trade a small account than a large account. The main reason for this is because of the Pattern Day Trader (PDT)Rule. The PDT rule limits U.S. based traders with less than $25,000 in their trading account to only 3 day trades per 5 business days. Further limitations are placed on accounts that break the PDT rule by placing 4 or more day trades within a 5 business day period.
The PDT rule was put into place by the SEC with the hopes that it would protect new traders from trading too frequently and quickly losing their money. In reality, a lot of time what it actually does is forces traders to hold risky positions overnight that they would rather exit the same day, due to them not having anymore day trades available.
There are a few ways that new traders can, in a way, get around the PDT rule to be able to place more day trades. First, they can look into opening an offshore trading account. Now, I know it sounds a bit sketchy... but opening an account with a reputable brokerage based outside of the U.S. is a legitimate way to get around the PDT rule. The reason this works is because the PDT rule is for U.S. traders and if your money is in an account outside of the U.S, you're free to trade as much as you'd like!
Another way to increase your number of day trades, without opening an offshore account, is to have multiple brokerage accounts. For example, if you have $2,000 to start trading, you could open 2 separate brokerage accounts with $1,000 in each and will then have 6 total day trades per 5 business days (3 with each account). If you're starting with a larger amount of money, but still under the $25,000 PDT minimum, you can even open more than 2 trading account if you'd like and will have 3 day trades in each one!
One issue you may run into using this method is that you can only have one margin account per brokerage. Margin accounts are required if you're someone that short sells or plans on doing some short-selling. Because of this, you should have separate accounts with entirely different brokerages. For example, one account with Etrade and one with TD Ameritrade.
Aside from the broker that you're using to do your trading, there are of course actual trading techniques and strategies that you can do with you small account that will give you better chances of growing over the $25,000 PDT minimum too. One of those strategies is to simply learn swing trading. You'll still be able to use your 3 day trades per 5 business days, but if you really want to put your money to work while your account is under the PDT rule, being able to profitably swing trade is an incredible way to grow your small trading account.
A swing trade is just a position held anywhere from a few days to a few weeks. This is different from day trading, which is when you exit your position the same day that it was opened. The nice thing about swing trading is that there are no limitations on how many swing trades you can place, even with a small account. One great way to swing trade is to follow stocks that already have momentum. By doing this, you're following the stock's trend rather than trying to fight it! "Follow the trend. The trend is your friend." - Jesse Livermore
You can use a screener like the one here on finviz.com to find stocks that already have some upward momentum. To do this you may include "Performance +10%" over the past week while screening. This will give you a list of that have gone up at least 10% in the past week. Of course, you'll want to narrow it down further but this is a good way to at least start searching for some stock with some upward momentum that you may be able to get in on.
The next tip for growing a small trading account is one that should be used regardless of the trading type that you're doing, whether it's day trading or swing trading. Risk proportionally to your account size. This means that, for example, if you would be risking $250 to $500 with a $25,000 account... you should only be risking $25 to $50 with a $2,500 account. It's important to know your max risk before entering a trade and using the proper position size based on your risk.
Doing this will help you prevent any major losses and save you from blowing your entire trading account with just one bad trade!
Hopefully instead of having to worry about blowing your trading account, you'll have to worry about my next tip. Don't remove your profits from your trading account. When you first start making some money it can be very tempting to move those profits straight into you bank account, but you'll never grow your trading account this way. In my opinion, you should maybe give yourself some milestone payments along the way, but keep a majority of your profits in your account until it's grown to your goal account size. By "milestone payments," I mean maybe withdraw some profits once you grow your account to $10,000 or $15,000, rather than randomly after you've made any profits at all.
Hope you found this helpful!
submitted by mtmtrader to RobinHoodPennyStocks [link] [comments]

Margin Equity, Balance, etc.

I am fairly new to penny stocks and definitely just dabbling with some money I made in gains. I use etrade and got flagged for day trading, but they removed the penalty since it was my first call in the 8 years I have used eTrade.
I have looked everywhere but I am having a hard time understanding the $25,000 balance part. Does this balance include margin, or do you need $25,000 of your own cash deposited to be able to freely day trade?
submitted by ADHDoll to pennystocks [link] [comments]

Growing a Small Trading Account📈

Wrote a lil blog with some tips to help grow a small trading account! Here it is:
Almost every trader that is brand new to the market starts off by trading a small account, as they should. After all, why dive into the high-risk world of day trading with all of your hard-earned life savings at risk? It's best to start small and slowly grow your account, or even add more to your account in the future when you're more confident in your trading. However, most people dream of starting a small account of a few hundred or a few thousand dollars and growing it one trade at a time, which is obviously easier said than done. In this post I'll be sharing some tips and tricks that can help you grow a small trading account. Most of these I even used myself when I first got trading and I believe they played a big role in helping me grow my account.
Before getting to the good stuff, you may be wondering why it's actually more difficult to trade a small account than a large account. The main reason for this is because of the Pattern Day Trader **(PDT)**Rule. The PDT rule limits U.S. based traders with less than $25,000 in their trading account to only 3 day trades per 5 business days. Further limitations are placed on accounts that break the PDT rule by placing 4 or more day trades within a 5 business day period.
The PDT rule was put into place by the SEC with the hopes that it would protect new traders from trading too frequently and quickly losing their money. In reality, a lot of time what it actually does is forces traders to hold risky positions overnight that they would rather exit the same day, due to them not having anymore day trades available.
There are a few ways that new traders can, in a way, get around the PDT rule to be able to place more day trades. First, they can look into opening an offshore trading account. Now, I know it sounds a bit sketchy... but opening an account with a reputable brokerage based outside of the U.S. is a legitimate way to get around the PDT rule. The reason this works is because the PDT rule is for U.S. traders and if your money is in an account outside of the U.S, you're free to trade as much as you'd like!
Another way to increase your number of day trades, without opening an offshore account, is to have multiple brokerage accounts. For example, if you have $2,000 to start trading, you could open 2 separate brokerage accounts with $1,000 in each and will then have 6 total day trades per 5 business days (3 with each account). If you're starting with a larger amount of money, but still under the $25,000 PDT minimum, you can even open more than 2 trading account if you'd like and will have 3 day trades in each one!
One issue you may run into using this method is that you can only have one margin account per brokerage. Margin accounts are required if you're someone that short sells or plans on doing some short-selling. Because of this, you should have separate accounts with entirely different brokerages. For example, one account with Etrade and one with TD Ameritrade.
Aside from the broker that you're using to do your trading, there are of course actual trading techniques and strategies that you can do with you small account that will give you better chances of growing over the $25,000 PDT minimum too. One of those strategies is to simply learn swing trading. You'll still be able to use your 3 day trades per 5 business days, but if you really want to put your money to work while your account is under the PDT rule, being able to profitably swing trade is an incredible way to grow your small trading account.
A swing trade is just a position held anywhere from a few days to a few weeks. This is different from day trading, which is when you exit your position the same day that it was opened. The nice thing about swing trading is that there are no limitations on how many swing trades you can place, even with a small account. One great way to swing trade is to follow stocks that already have momentum. By doing this, you're following the stock's trend rather than trying to fight it! "Follow the trend. The trend is your friend." - Jesse Livermore
You can use a screener like the one here on finviz.com to find stocks that already have some upward momentum. To do this you may include "Performance +10%" over the past week while screening. This will give you a list of that have gone up at least 10% in the past week. Of course, you'll want to narrow it down further but this is a good way to at least start searching for some stock with some upward momentum that you may be able to get in on.
The next tip for growing a small trading account is one that should be used regardless of the trading type that you're doing, whether it's day trading or swing trading. Risk proportionally to your account size. This means that, for example, if you would be risking $250 to $500 with a $25,000 account... you should only be risking $25 to $50 with a $2,500 account. It's important to know your max risk before entering a trade and using the proper position size based on your risk.
Doing this will help you prevent any major losses and save you from blowing your entire trading account with just one bad trade!
Hopefully instead of having to worry about blowing your trading account, you'll have to worry about my next tip. Don't remove your profits from your trading account. When you first start making some money it can be very tempting to move those profits straight into you bank account, but you'll never grow your trading account this way. In my opinion, you should maybe give yourself some milestone payments along the way, but keep a majority of your profits in your account until it's grown to your goal account size. By "milestone payments," I mean maybe withdraw some profits once you grow your account to $10,000 or $15,000, rather than randomly after you've made any profits at all.
Hope you found this helpful!
submitted by mtmtrader to stocks [link] [comments]

Growing a Small Trading Account📈

Wrote a lil blog with some tips to help grow a small trading account! Here it is:
Almost every trader that is brand new to the market starts off by trading a small account, as they should. After all, why dive into the high-risk world of day trading with all of your hard-earned life savings at risk? It's best to start small and slowly grow your account, or even add more to your account in the future when you're more confident in your trading. However, most people dream of starting a small account of a few hundred or a few thousand dollars and growing it one trade at a time, which is obviously easier said than done. In this post I'll be sharing some tips and tricks that can help you grow a small trading account. Most of these I even used myself when I first got trading and I believe they played a big role in helping me grow my account.
Before getting to the good stuff, you may be wondering why it's actually more difficult to trade a small account than a large account. The main reason for this is because of the Pattern Day Trader **(PDT)**Rule. The PDT rule limits U.S. based traders with less than $25,000 in their trading account to only 3 day trades per 5 business days. Further limitations are placed on accounts that break the PDT rule by placing 4 or more day trades within a 5 business day period.
The PDT rule was put into place by the SEC with the hopes that it would protect new traders from trading too frequently and quickly losing their money. In reality, a lot of time what it actually does is forces traders to hold risky positions overnight that they would rather exit the same day, due to them not having anymore day trades available.
There are a few ways that new traders can, in a way, get around the PDT rule to be able to place more day trades. First, they can look into opening an offshore trading account. Now, I know it sounds a bit sketchy... but opening an account with a reputable brokerage based outside of the U.S. is a legitimate way to get around the PDT rule. The reason this works is because the PDT rule is for U.S. traders and if your money is in an account outside of the U.S, you're free to trade as much as you'd like!
Another way to increase your number of day trades, without opening an offshore account, is to have multiple brokerage accounts. For example, if you have $2,000 to start trading, you could open 2 separate brokerage accounts with $1,000 in each and will then have 6 total day trades per 5 business days (3 with each account). If you're starting with a larger amount of money, but still under the $25,000 PDT minimum, you can even open more than 2 trading account if you'd like and will have 3 day trades in each one!
One issue you may run into using this method is that you can only have one margin account per brokerage. Margin accounts are required if you're someone that short sells or plans on doing some short-selling. Because of this, you should have separate accounts with entirely different brokerages. For example, one account with Etrade and one with TD Ameritrade.
Aside from the broker that you're using to do your trading, there are of course actual trading techniques and strategies that you can do with you small account that will give you better chances of growing over the $25,000 PDT minimum too. One of those strategies is to simply learn swing trading. You'll still be able to use your 3 day trades per 5 business days, but if you really want to put your money to work while your account is under the PDT rule, being able to profitably swing trade is an incredible way to grow your small trading account.
A swing trade is just a position held anywhere from a few days to a few weeks. This is different from day trading, which is when you exit your position the same day that it was opened. The nice thing about swing trading is that there are no limitations on how many swing trades you can place, even with a small account. One great way to swing trade is to follow stocks that already have momentum. By doing this, you're following the stock's trend rather than trying to fight it! "Follow the trend. The trend is your friend." - Jesse Livermore
You can use a screener like the one here on finviz.com to find stocks that already have some upward momentum. To do this you may include "Performance +10%" over the past week while screening. This will give you a list of that have gone up at least 10% in the past week. Of course, you'll want to narrow it down further but this is a good way to at least start searching for some stock with some upward momentum that you may be able to get in on.
The next tip for growing a small trading account is one that should be used regardless of the trading type that you're doing, whether it's day trading or swing trading. Risk proportionally to your account size. This means that, for example, if you would be risking $250 to $500 with a $25,000 account... you should only be risking $25 to $50 with a $2,500 account. It's important to know your max risk before entering a trade and using the proper position size based on your risk.
Doing this will help you prevent any major losses and save you from blowing your entire trading account with just one bad trade!
Hopefully instead of having to worry about blowing your trading account, you'll have to worry about my next tip. Don't remove your profits from your trading account. When you first start making some money it can be very tempting to move those profits straight into you bank account, but you'll never grow your trading account this way. In my opinion, you should maybe give yourself some milestone payments along the way, but keep a majority of your profits in your account until it's grown to your goal account size. By "milestone payments," I mean maybe withdraw some profits once you grow your account to $10,000 or $15,000, rather than randomly after you've made any profits at all.
Hope you found this helpful!
submitted by mtmtrader to StockMarket [link] [comments]

ARCA level 2 quotes

I'm trying to understand level 2 quotes. I know that most of them require subscriptions to access them, so I went the cheap route and just look at ARCA. I've noticed however that the ARCA L2's seem pretty limited compared to the actual volume of trading per day, not to mention I'll see a signal to start moving up, but the price keeps dropping the entire day (And vice versa).
How do ARCA L2's work? Are they even worth looking at in the grand scheme of things? Am I just dense and cant read L2's?
submitted by Aledeyis to stocks [link] [comments]

E*Trade (ETFC) financials. They report 1-24-2019 after hours. I like their revenue growth and particularly their profit growth this year. A comparable company would be AMTD (TD Ameritrade), who beat on 1-22-2019 after hours. I expect a beat.

E*Trade (ETFC) financials. They report 1-24-2019 after hours. I like their revenue growth and particularly their profit growth this year. A comparable company would be AMTD (TD Ameritrade), who beat on 1-22-2019 after hours. I expect a beat. submitted by Nonaluuluu to wallstreetbets [link] [comments]

Futures Margin Requirements

Does anyone know the intraday day trading margin requirements for Interactive Brokers and ETrade? Specifically for their futures.
I can’t seem to find that info anywhere and when I ask the chat they try to make me call the trade desk which I’m trying to avoid.
submitted by cpark0912 to Daytrading [link] [comments]

Thoughts on TWLO?

Does anyone think they could go much higher or are they overvalued and near their peak?
They are currently sitting at a little over $42 per share.
submitted by iDryShaveMyBalls to StockMarket [link] [comments]

Robinhood versus other brokers

TL;DR: Robinhood is extremely effective at *just limit and market orders* (because Robinhood secretly turns market orders into limit orders anyway). Its stock statistics are (still) inaccurate, its stops don't work (at least sometimes as reported by multiple redditors, including me), and it provides no chart indicators at all. It is most effective when used with Yahoo! Finance, Google Finance, and/or another broker with whom you have a more sophisticated account. Do your research there, and use Robinhood only to place actual trades, ignoring the sometimes-inaccurate numbers it shows. Lastly, it rocks at single-share trades, which other brokers' commissions render impossible (but track your trades in your own spreadsheet like a hawk!).
Other brokers include:
Aspect or Element Robinhood Other Brokers
Commission for every buy and sell order, even if you lose in the overall trade NONE! (Like Loyal3 but with traditional trading freedom) Around $3-10
Monthly market data/brokerage fees NONE! (Like OptionsHouse and TradeKing!) For some, a flat $3/month or a minimum volume of trades per month and/or huge account balance to waive them
Account opening minimum NONE! (I started with 1¢) For some, $1,000
Cash-fronting Instantly accessible $1,000: for every ACH deposit you make, the first up-to-$1,000 is instantly trade-able within seconds. Once the rest of the deposit goes through, each next ACH can get its first up-to-$1,000 fronted. No fronting apart from costly wire transfers
New account promotion/deal Some users report a $5 incentive to sign up (referrers are also paid $5; referral codes are sent selectively by e-mail) Some brokers give free trades to referrers or even a Nexus tablet, and some referral incentives include a little cash back or reimbursed fees on ACATS (entire portfolio transfers) from another brokerage
Max deposit limit $50,000 per day, as one redditor reported For some, none? Swing that cash!
SEC and other fees shown per order No. You're actually additionally giving up at least 2¢ for every sale. For many (all others?), yes
SEC fees per sale (minimum of 2¢, so sell at least 3-4¢ above your buy price to break even if 1 share) Yes (required by federal law) Yes (required by federal law)
People without an SSN can trade Not currently, though there are plans for international access Some
Can trade ADRs or foreign stocks/on foreign exchanges Very limited/No Some/A few
3 settlement days before cash reuse in cash accounts (as required by federal law; you can blame Bill Clinton) Yes (3 days' strictly forced wait after every sale—even if you bought it 3 days ago! 😦 But not in Robinhood Instant) Some no, some yes (but the 3 days are more flexible than Robinhood and start counting right after the buy date)
Margin accounts (which have no settlement days) Yes, in a limited way through Robinhood Instant Yes, with full margin-borrowing
Fractional shares (like, buy 1.4 shares of GOOG) No Some, like Motif Investing
Sometimes you can't sell your shares True! (as reported by at least 3 redditors, sometimes your sell button disappears temporarily. Mwahahaha! That's what you get for free, you cheapskate!) False (as long as you don't buy something right after selling, then want to suddenly ditch that new purchase—settlement days, y'know)
Stock statistics are... horribly inaccurate (sometimes it will say the 52-wk. Low is higher than it actually is, or a stock doesn't pay dividends when it actually does. You get what you pay for! Or... didn't 😝 But your orders will always fill or not fill according to current real prices, not what it displays) dead-on accurate. Where do you think your commissions go to? Straight to their wallets?
Price alerts No 📉 Yes 📈
1-day chart 10-minute intervals only Adjustable periods
Bid & Ask prices None; Last only (even though stock-trading always consists of two prices, not one; Robinhood makes no mention of this!) Yes (you buy at the Ask price and sell at the Bid; Bid is always lower by at least 1¢. This is a huge problem with Robinhood because the Bid-Ask spread on thinly traded stocks can be gigantic, sometimes almost a dime)
Level 2 order tables No Some
Stock news Yes, as of v1.4.1 Yes
Technical indicators and candlestick-style chart-reading None Many (and some with alerts)
Selling Order (if you buy the same stock multiple times, then sell partially) FIFO (First In, First Out) only For some, adjustable to LIFO (Last In, First Out) and/or versus-purchase
Can pick tax lots per sale if you bought the same stock at different prices and want to sell out of order No. Hope you're a good bookkeeper. A few, such as Merrill Edge
Shorting, options, foreign domiciled securities, OTC equities, warrants, mutual funds, bonds/fixed-income trading No, but planned Some 💸
Dividend-receiving Yes Yes
DRIPS (automatic dividend reinvestment) No Some
Taxes on capital gains Yes Yes
Tax deductions on capital losses Yes Yes
Paper trading (a practice account with fake money) No Many offer a free one
Market orders are... actually disguised limit orders at ±5% of the most recent price (and there is no way to change this, even if you agree to the risk 😟 To see the app's warning popup on this, preview trying to buy beyond what you can afford) true market orders (instantly get you in/out for sure on whatever current price is available, probably a bad one)
Limit orders... supposedly might buy at $0.012 even if you put a $0.01 limit order, due to some weird Robinhood method of rounding will never flex your limit price! 💪
Stop orders / stop limit orders Yes, but they don't seem to triggedo anything, for multiple redditors and me Many
Trailing stop orders No Many
Can queue orders for the next day Only if you place the order when the market is closed The same, and some can schedule orders at any time for any day
Can edit a pending order No Yes
Can save a prepared order for quick sending later No Some
Can convert a pending order into a saved order No way Well, OptionsHouse can!
Unfilled orders expire... on your choice of one day or GTC (Good-'Til-Canceled: forever active until filled or manually canceled) for many brokers, these and even more specific, like "Activate on X date and/or expire on Y date and/or if Z stock hits V price"
Can do Order-Cancels-Order (OCO) paired orders Nope Some
Can do other fancy things like display a custom fake order size or keep orders dormant until the stock (or even a different one) hits a certain price Yeah, right Some, such as OptionsHouse 😉
Premarket/after hours trading Not yet, but planned Yes
Browser- or web-trading Smartphone apps only, though an official version is supposed to come out in 2015. Meanwhile, Chrome emulation is possible! Almost all (and some require downloading and installing their software locally onto your computer)
UI problems that other brokers don't have:
Robinhood UI awesome sauce:
submitted by KeronCyst to RobinHood [link] [comments]

New to this... I am using E-Trade - is it fast enough for day trading?

I am still learning and just investing very small amounts ($500 or so) while I learn. Is e-trade my best option? The commissions seem reasonable.
submitted by FalkorSaurus to StockMarket [link] [comments]

A bit of a newb question

I figured because it is a non market day i would try and ask this without pissing people off. Before getting into trading i studied for a year or so and practiced on a virtual simulator. Upon starting semi active trading in March of this year i have had relative success for a beginner. I started with $1,200 and now have $2,500. but the t3 settlement rule is killing me! I have researched this for awhile and the majority say to start a margin account. My 3 questions are 1. Will a margin account really bypass this rule? 2. Do i have to borrow and leverage money if i get a margin account, or can i just trade normally like i am doing currently? 3. Also, isn't the rule you cant trade otc's, pink sheets, or penny stocks on a margin account Thanks for any responses.
submitted by newark02 to pennystocks [link] [comments]

Day Trading High Volatility Tickers like SVXY, VXX

Hi, I just transferred my account from eTrade to Robinhood (assets > 25K); my robinhood account is still an instant account.
I noticed I could not day trade SVXY and I was asked to wait for next trading day for the proceeds from previous day to be available to buy SVXY again. I read through their FAQ and I understand their restrictions on High Availability Tickers.
Question I have is - if I migrate my account to Robinhood Gold / Margin account, would I be able to get away with this restrictions or even in robinhood gold such restrictions still apply.
Edited Monday 7/31 :
I upgraded my account to gold ; the problem is bcoz of the high volatility ticker; I am not able to day trade it... it appears I can buy again after making a sale but i won't be allowed to sell after I make the purchase.
so even though i have more than 25K in my account I am not able to day trade high volatility ticker in robinhood account even with robinhood gold status.
submitted by life_is_to_live to RobinHood [link] [comments]

is robinhood any good?

apparently robinhood is offering some kind of promotion where new users get a free stock. my friend sent me the link so i opened an account got my free share of gopro (trash stock IMHO) and now i don't know whether to close my account in 30 days and take my free money to my main brokerage accounts at td ameritrade or vanguard or to keep the robinhood account and try out some commision free trades. i feel like the pure temptation of commision free trades might lead me to try reckless strategies and lose money lol
my real biggest problem with robinhood is your money not invested isn't put in a money market account so its not earning anything. That money to some extent already offsets trading fees. also to trade after hours i need to sigh up for that bullcrap robinhood gold margin account which im not a fan of. i can get margin for cheaper through most other brokers...
so to finish it off currently the stock portion of my portfolio is about 70 percent vanguard index funds at vanguard 20 percent individual options stocks bonds active mutual funds ect at td ameritrade
10 percent mostly commision free index etfs at etrade.
but im done with etrade and their horrible customer service and hidden fees so im moving al my money out of etrade and was gonna move it to vanguard but now im thinking of putting it in robinhood..... so any thoughts. i feel it would make quick swing trades profitable especially with all the over corrections that have been going on recently .
submitted by renesyahooacount to investing [link] [comments]

Fidelity rage

Today VIX hit 12.5 again even though these levels are extremely low given the macro environment and political tensions. I knew I wanted to play vol, and Jul 20 SPY ATM puts were so cheap, they'd be profitable after less than a 1% drop. I migrated my eTrade to my Fidelity recently, and they told me all my permissions were transfer over. My margin agreement transferred just fine, but someone fucked up and forgot to transfer even Level 1 of the options stuff. I called my rep and I was pretty pissed, but he said they'll expedite it and I'll be able to do options trading either tomorrow or the next day. Well guess fucking what, SPX is going to open 1% down tomorrow morning, meaning the puts are already ITM and profitable. Given only 1 day of theta decay and the magnitude of the drop, and how IV is going to spike with the tensions, the puts are going to be up like 200% or some shit. Would've hedged my entire portfolio and more.
submitted by Gaston44 to wallstreetbets [link] [comments]

Robinhood – Means to an End - My Journey!

The Hook
I’m not old, but I’m certainly not young anymore… Being squarely in my mid 30s and with a kid and a second on the way I’ve been in a little bit of a panic financially, not so much short term but long term. Will I be able to provide the life I was given by my parents? (Probably not) However, I wanted to do better than what I was currently forecasting. I work a decent job, and so does my wife but with Daycare and her Student loans… I really felt I was never going get ahead. Finally after 9 months, and some pain. I don’t see a fairy tale ending but I see some light and a means to move forward.
So what happened 9 months ago? My cousin, asked me “Hey do you invest in the market?” At the time my response was no, I had no money to do so. He responded to me, dude open up a Robinhood account, 0 fees, 0 commission, you can start with 10 dollars, it’s amazing. He told me, “I’ve been researching this Drug Company Relypsa, as a doctor (He is a doctor) the Black Box warning is complete “B.S”, the stock TANKED over literally nothing and a complete steal today. If you even put 100 dollars in today, you are going double your money.” To be fair, if I had a Robinhood account that day for each 100 dollars I put in knowing nothing else about how anything works I would have had 230 dollars today. So now comes the lessons…
Losing my shirt!
That day came and passed, but the pump machine was real… The stock soared. I saw dollar signs and realized I can make some cash on this! I scrambled some savings, and tried to open up an eTrade account. By this time… RLYP was trading into the mid 20s. Market cap was still well under what a competitor was bought for and that drug wasn’t even FDA APPROVED yet… MAN I’m going be RICH, I thought to myself. After reading the fine print and fee’s eTrade was going eat at so much of my profit margin it discouraged me that I never moved money to the account and I sat on the sidelines. Discouraged, I got another phone call… My Cousin was check in again “Did you get that Robinhood account, I Doubled my money man! If it dips I’m going “buy back in”. So with my tail in-between my leg and already pissed off I missed a boat, I looked at the Robinhood app. The app looked neat but did I really trust it? I mean I had never heard of it before and I was going tie it to my bank account? To give them my personal information? Ugggz…. But the fear of missing out was larger than anything else, so after my research into Robinhood… I finally opened up an account with Robinhood.
Since this deal was soo amazing, I moved pretty much my whole savings into it… (DUMB MOVE) and started to add RLYP to the tracking system. The stock was trading near the upper 20s, but my cousin already made 100% this has to be a great deal right? So Whatever BUY! I had the presence of mind to wait for a “dip” and bought in at 26.92. The stock continued push up and took my left over Christmas money and bought more stock at 29.80 because why not? This thing is just going up up up! Christmas passed and stock even reached 30 dollars a share… I couldn’t believe how lucky I was. Then Jan 1st happened. In a moment all that joy was now heartburn as share prices TUMBLED. A few more days and It was already back below my 26.92 and still falling. Note - Being new I didn’t even know what a stop loss was….. We will get back this to later Of course this was just a hiccup all biotechs are down and we will be fine…. Share price continue to fall, 19 dollars… Its just a paper loss, its fine I would tell myself. Prices continued to tank back down to 12 dollars per share… At this point I had lost 60% of my deposit and the wife was ready to KILL ME. THIS IS why YOU DON”T INVEST. I was pretty depressed at this point and debated pulling what money I had left, out. I had been saving a little bit money during this time and I had started researching a lot of things. I was reading 1-2 hours a day on trading, the market, and everything I was reading I was literally saying to myself… I made EVERY single mistake possible.
The Curve
After reading and finally doing my own due diligence into RLYP, I came to the conclusion that the stock itself was sound, it had FDA approval the drug was selling. I just had a horrible entry point and chased. So instead of selling I was happy to buy more RLYP at any price point below 20 dollars. I figured I could not eat out at lunch and save 20 dollars a week which at current market price would allow me to gain a share or two a week. During this time frame I bought down my avg share price from 27.50 to a final total of 21.92. I made many more mistakes during this period of time and for all my stupidity, I got bailed out. The company got bought out for 32 dollars per share and I instantly sold 3/4ths of my position. Another offer might come in, but a bird in hand is better than two in the Bush. Even if RLYP goes to 0, I still break even and I have learned that the Market will and can eat you alive.
So if you read this, you are probably asking yourself how this applies to you? TL;DR section!
The Lesson Top 10!
1) Robinhood is an AMAZING app, while it still has plenty of room for improvement, its free and all trades are free!!!!! This allows you to learn about the Market and make trades with small amounts of money while you keep your gains without paying commission~! While this sounds too good to be true, I can personally vouch that it is that good!
2) No amount is too small to start… Start with 10 dollars if that is what you have, and if you are like me…. You might become addicted to saving, I now even put a small direct deposit into my Robinhood account.
3) Do your own Due Diligence… Don’t follow ANYONE blindly ever. It worked out for me, but I know I am not good and just got lucky as hell.
a. Use Charts - https://new.tradingview.com/ (Free and Great) Chartmill.com (Paid/free)
b. Get information – stocktwits.com / reddit / news sites / etc…
c. Get information directly from the company – Stockholder qtrly meetings / press releases
d. Analyst target pricing they all have agendas and they might not align with your own
4) Set a stop loss, if I had set a stop loss at 26.92 on RLYP It would have sold the stock on the down turn and I would have lost all profits from the stock going to 30. I would have prevented my 60% loss as the stock tumbled all the way down to 12 dollars. I could have rebought the stock at 12 dollars and made a lot more money after doing my own due diligence.
Learn the Terms and the differences between each type of Stock Purchase. (https://www.youtube.com/watch?v=jPIL8ncYb6Y)
5) DON"T Buy into the Hype machines either way... if they really knew they would be multi millionaires and not hyping a 10 dollar stock.
6) Invest wisely, ie don’t put all your money on one stock without knowing you could lose it all.
7) It’s OK to take a loss, mentally this was very difficult for me to get over. I still probably hold losers longer then I should, see me still owning PYPL.
8) Entry point, Entry Point, Entry Point… and Patience!!! RLYP was a GREAT buy at 12 and a Good buy at 20… but above that you were chasing.
9) Tax Burden. If you net gains, you will owe taxes on each sale!
“If you sell a stock, you pay 15% (20% for high earners) of any profits you made over the time you held the stock. Those profits are known as capital gains, and the tax is called the capital gains tax. One exception: If you hold a stock for less than a year before you sell it, you'll have to pay your regular income tax rate on the gain - a rate that's usually higher than the capital gains tax.” http://money.cnn.com/retirement/guide/investing_stocks.moneymag/index9.htm
10) Have fun, if this isn't fun it isn't for you!
The Robinhood experience for me
My account creation process took 2 days.
My funds clear in 1-2 days from USAA, but it takes 3-5 days from my CapitalOne account
My deposit back to my back account take about the same amount of time
Robinhood app has gone down from time to time, so always have a stop loss set. If the stop loss is set before the app goes down it will still process regardless if the app is up or down.
Customer support is super helpful but sometimes slow
Customer support takes suggestions, one of my two suggestions were implemented!
What do I trade? I trade mostly BIO’s and Tech. Why? Because I have a tech background and my cousin who I discuss stocks with is a doctor. I try to trade stocks where I feel like I have some knowledge in the field.
My returns? Worst point I was at .40% (This is not a typo...) , I am now at 38% returns for the year.
_
Lifestyle changes I am way more frugal now… because I see a reason save and invest. The control I have with Robinhood on how I invest gives me a sense excitement and fulfillment that mutual funds and CDs just don’t bring.
I now see a means to an End... My goal of having 100k cold hard cash, outside of my house is a real possibility!! Potentially reachable before I turn 40!!!! I've never been so excited to save money and my cousin and I excitement keeps us both going... so sometimes I guess having a saving buddy can be a good thing... kinda like a Gym buddy but someone to remind you not to go out to lunch and brown bag it!
Hope you find this helpful~ If you are on the fence about trying Robinhood out and investing... DO it, better today then tomorrow and better tomorrow then the day after!
Feel free to ask questions!!!!
Update
Because it was request in a few private messages, below are my charts.
http://imgur.com/a/S9YLg (3 month)
http://imgur.com/a/buE5o (Lifetime)
http://imgur.com/a/jWiGy (1 Yr)
submitted by Clipssu to RobinHood [link] [comments]

Day Trade Limits

I've read http://www.finra.org/investors/day-trading-margin-requirements-know-rules about the limits of 3 day trades every 5 trading days. However, it didn't seem clear to me whether or not the limit is per account? Say I have two accounts, one with Robinhood, and one with Etrade. If I do a day trade on my Robinhood account, would I also have to keep that current count in mind when trading on Etrade? Thanks
submitted by colatral to investing [link] [comments]

Question about stocks purchased on margin

This is a pretty basic question but I've tried Googling around and haven't been able to find any answers.
I was recently approved for margin trading in my brokerage account (Etrade). I don't really plan on using it for anything more than occasional, very limited use. However, I'm a little unclear about how interest is calculated for borrowing on margin.
All of the examples I've seen online have assumed that the margin balance has been repaid by the sale of the stocks bought on margin. My question is this: I have a regularly scheduled deposit into my brokerage account, so can/will this be used to repay margin debt?
Example: I have $100 in my account, and buy two shares of a stock worth $75. This results in a $50 margin debt. Then, the next day I deposit $100 into the account. One year later, I sell the stocks I bought on margin for no gain. Do I get charged interest for the 1 day that my account had a net negative balance, or for the year that I held stocks purchased on margin?
Any help would be greatly appreciated. Thanks!
submitted by IAmCroBatman to personalfinance [link] [comments]

Margin Trading  Trading Terms - YouTube What is gross margin and how to use it with etrade (5 mins) LEARN TO DAY TRADE! THE SIMPLE GUIDE! Margin Trading 101: How It Works - YouTube Day trading with etrade and my opinion

This article discusses the basic mechanics of day trading, the free-ride regulations, and explains how traders use margin accounts to avoid violating those free-ride regulations. Day trading is the term applied to people who buy and sell stocks through the course of a day, rarely holding a stock overnight. You might be wondering just whatRead More Per FINRA, the term pattern day trader (PDT) refers to any customer who executes four or more day trades within a rolling five business-day period in a margin account. Keep in mind a broker-dealer may also designate a customer as a pattern day trader if it knows or has a reasonable basis to believe the customer will engage in pattern day trading. Day trading defined. Anytime you use your margin account to purchase and sell the same security on the same business day, it qualifies as a day trade. The same holds true if you execute a short sale and cover your position on the same day. ... there are consequences for pattern day traders who fail to comply with the margin requirements for day ... Example 2. Option BP is $3,000. DTBP is $3,000. Customer has a long overnight position of 50 XYZ Jan 50 calls with a market value of $5,000. Trade 1 (8:35 a.m.)—Sell to close (STC) 50 XYZ Jan 50 calls $1.10. Etrade pattern day trading rules and active trader requirements. Margin buying power limits, and $25,000 minimum equity balance PDT restrictions. How many day trades does Etrade allow on cash account. E*Trade Pattern Day Trading Like other brokerage houses, E*Trade enforces a pattern day trading regulation, the dreaded PDT rule.

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Margin Trading Trading Terms - YouTube

What is margin trading? What is a margin? What is the difference between a cash account and a margin account? In episode #34 of Real World Finance we dive de... If you make 4 or more day trades within a 5-day period using a margin account, you can be considered a pattern day trader. Learn about the PDT rule with Tim ... If you don't understand the Pattern Day Trader rule, you can end up with unwanted surprises--and large margin calls. What is this rule, and how do you avoid ... Day trading and my opinion. How to Buy and Sell calls and puts (option trading) with etrade. - Duration: 8:37. TOP 5 Day Trading Beginner Mistakes Costing YOU Money - Duration: 1:07:17. Live Traders 87,898 views. 1:07:17. DAY TRADING LIVE! $500 in 1 Minute! - Duration: 13:59.

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