[thales]

Just thought I'd share some information for stocks when it comes to what's legal and what's not + requirements. THIS IS US ONLY.

Day trading: Defined as someone who makes 4+ trades within a week (5 day business week) is considered a pattern day trader.
Requirements for this: You are required legally to have an account balance of at least $25,000 to do this.
Does not apply to Forex trading


Stock advice: It is ILLEGAL to offer PAID stock advice (fee or flat amount) without specific licenses and applications filled out.
Requirements: https://www.sec.gov/about/laws/iaa40.pdf (read more here)



Margin Accounts: By law MUST have a minimum balance of $2,000.
Requirements: $2,000 to open a margin account.

Will add more if requested.

[vexius]

Should be said that these rules only apply to US citizens, and the first one doesn't apply to forex trading

However, thanks for posting :)

[thales]

Should be said that these rules only apply to US citizens, and the first one doesn't apply to forex trading

However, thanks for posting :)

I'll add those in, thanks =)

[Kіng]

Just thought I'd share some information for stocks when it comes to what's legal and what's not + requirements. THIS IS US ONLY.

Day trading: Defined as someone who makes 4+ trades within a week (5 day business week) is considered a pattern day trader.
Requirements for this: You are required legally to have an account balance of at least $25,000 to do this.
Does not apply to Forex trading


Stock advice: It is ILLEGAL to offer PAID stock advice (fee or flat amount) without specific licenses and applications filled out.
Requirements: https://www.sec.gov/about/laws/iaa40.pdf (read more here)



Margin Accounts: By law MUST have a minimum balance of $2,000.
Requirements: $2,000 to open a margin account.

Will add more if requested.

I know you're mainly talking about US but this may be good to add for Canadian residents:

PDT rule does not apply to Canadians at all. No minimum to day trade and no time is needed for the funds to settle (meaning you can trade using $100 an infinite amount of times provided you don't lose and no commissions).

For the advice, you need a license and an entity backing you up in the case that you are held liable.

Margin accounts: I believe it is a minimum of $1000 (lowest I've ever seen on any Canadian broker).

[Decade501]

Should post some tax requirements / limitations as well ;p

[thales]

I know you're mainly talking about US but this may be good to add for Canadian residents:

PDT rule does not apply to Canadians at all. No minimum to day trade and no time is needed for the funds to settle (meaning you can trade using $100 an infinite amount of times provided you don't lose and no commissions).

For the advice, you need a license and an entity backing you up in the case that you are held liable.

Margin accounts: I believe it is a minimum of $1000 (lowest I've ever seen on any Canadian broker).

This is us stuff only 😝